LAWRENCE, Mass., Jan. 10 /PRNewswire/ -- Malden Mills Industries, Inc. announced today that its board of directors has unanimously voted to approve the sale of the Company to Gordon Brothers Group of Boston, Massachusetts for $44 million. Malden Mills will continue normal manufacturing operations at both its facilities in Lawrence, Massachusetts and Hudson, New Hampshire. In order to implement the sale, Malden Mills Industries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Chapter 11 process will provide an efficient environment for completion of the sale. The sale is subject to higher and better offers, and completion of the sale is expected by the end of February 2007, subject to court approval. GE Commercial Finance will be providing a Debtor in Possession (DIP) financing facility, which ensures that the Company has the working capital required for a seamless transition in operations to new ownership. Malden Mills CEO Michael Spillane said, "Over the past three years we have worked diligently to improve every aspect of the operational side of the business. Our on-time delivery, manufacturing quality, and product innovation have never been better. The sale of Malden Mills to Gordon Brothers Group transitions the company into a state of permanent ownership and financial stability. This financial transaction will significantly improve the Company's balance sheet enabling Malden Mills to continue to serve our customers in both the commercial and military markets." Malden Mills Industries, Inc. is the developer, manufacturer, and marketer of Polartec(R) performance fabrics. Polartec(R) products range from lightweight wicking base layers to insulation to extreme weather protection and are utilized by the best clothing brands in the world. In addition, Polartec(R) fabrics are used extensively by all branches of the United States military including the Army, Navy, Marine Corps, Air Force, and Special Operations Forces. For more information please visit our website at www.polartec.com.
SOURCE Malden Mills Industries, Inc.