Cone Mills' sale to W.L. Ross gets court approval

New York, Feb. 10 - Cone Mills Corp. obtained bankruptcy court approval for the sale of its assets to W.L. Ross & Co.

W. L. Ross was the winner of the auction for the company, with its original $46 million bid. The price will be paid in cash and W.L. Ross will also assume outstanding debtor-in-possession loans and some other liabilities for a total transaction value of $90 million.

W.L. Ross was confirmed as the buyer by the U.S. Bankruptcy Court for the District of Delaware on Tuesday.

The sale had been opposed by Cone Mill's ad hoc committee of bondholders who complained the company was worth far more - and added that the sale price was less even than the liquidation value.

The official equity committee also expressed concern that the proposed sale values the company's assets at too low a price.

"After an exhaustive review of options and an open bidding process, we are pleased that the court has approved the sale of Cone Mills to WL Ross & Co.," said John L. Bakane, Cone Mills' chief executive officer, in a news release announcing the court decision.

"Given the enormous challenges our company has faced from the devastating impact of low-cost imports, we firmly believe that the sale to WL Ross & Co. is the best solution for our employees, customers and communities going forward."

A closing date for the sale has not yet been fixed.

Cone Mills is a Greensboro, N.C. maker of denim. Its Chapter 11 case number is 03-12944.

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