DANVILLE, Va. (Jan. 5)--Apparel and industrial textile producer Dan River Inc. has agreed to sell its Engineered Products Division in Porterdale, Georgia--a producer of yarns and fabrics for rubber goods reinforcement--to an investor group affiliated with two other rubber reinforcement producers.
However, since Dan River is operating under Chapter 11 bankruptcy protection, other interested parties still have until Jan. 6 to bid on the business, also known as the Bibb division. The proposed sale, for $9.37 million, is subject to approval by the US Bankruptcy Court for the Northern District of Georgia, Newnan Division.
The proposed purchasing entity, Porterdale Acquisition L.L.C., is affiliated with two other producers of yarns and fabrics for the rubber goods market--Industrial Specialty Fabrics Inc. of Hogansville, Georgia, and Royal Cord Inc. of Thomaston, Georgia.
"This is a very positive development for Dan River's engineered products business and for its customers," said Bob Major, president of the Engineered Products Division. "A number of parties expressed an interest in acquiring, improving and developing this business. We are focused on completing the sale process and on continuing to partner with our customers to timely deliver even better quality, innovative products."
Should other parties surface, they would have to submit bids at least $100,000 higher than Porterdale Acquisition's, Major said. The submission of other serious bids would result in an auction Jan. 11, he said.
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