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| Tuesday, February 9, 2010 |
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Pillowtex bankruptcy proceedings begin
Published August 22, 2003
Bankruptcy proceedings began in a Delaware court Wednesday to determine the fate of the defunct Pillowtex Corp.
Companies interested in Pillowtex have until Sept. 4 to file a bid. Recently, Welspun India Ltd. said it was interested in parts of the company.
However, officials for the Union of Needletrades, Industrial and Textile Employees said the quick deadline for bids will make it almost impossible for any company to get a bid together. Judge Peter Walsh is presiding over the proceedings and will decide whether the bidding deadline will be extended.
Local union vice president Michael Grider said he thinks the judge is leaning toward extending the deadline.
The Charlotte Observer reported that Walsh indicated he would encourage other companies to bid. This could make GGST, LCC, the company that plans to liquidate Pillowtex, withdraw its offer.
Union officials also said Pillowtex is not interested in selling the company in pieces, only as a whole.
The union has been named to the creditor’s committee, which will file claims about money owed by Pillowtex.
The union said it is asking for vacation pay and insurance claims made before the company folded.
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