Source: Daily Deal
 
It's official! Wilbur L. Ross is now a textile magnate.
 
Burlington Industries Inc. on Thursday, Oct. 30, won approval of its confirmation plan, which hands control of the Greensboro, N.C., textile maker over to WL Ross & Co.
 
Under Burlington's reorganization plan, WL Ross pays $614 million for most of the textile supplier's assets and takes it private.
 
The sale to Ross does not end the Burlington saga, however. The company still has about $20 million in assets to sell, which should generate more cash for creditors. The company also has $13 million in cash.
 
Ross himself has said he intends to sell Burlington's Lees Carpets division to Calhoun, Ga., carpet maker Mohawk Industries Inc.
 
The New York buyout veteran will take Burlington's reins as chairman and CEO when the plan takes effect on Nov. 10.
 
The purchase price could be adjusted for working capital and for any pension shortfall, according to Burlington CFO Charles Peters.
 
But regardless of what the final price turns out to be, unsecured creditors should recover about 40% of their claims.
 
Burlington filed for Chapter 11 on Nov. 15, 2001, in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
 
Robert Profusek of Jones Day in New York is counsel to Burlington, and Durc Savini of Miller Buckfire Lewis Ying & Co. LLC and Ken Tuchman of Dresdner Kleinwort Wasserstein are financial advisers to the company.
 
Robert Schmicker of Stroock & Stroock & Lavan LLP is advising WL Ross.
 
Sheffield Merchant Banking Group advised the unsecured creditors.