Western Nonwovens, Inc. (WNI, Carson, California) filing under Chapter
11 has agreed to sell most of its assets to SBC Manufacturing Co. LLC. The sale
includes WNI's plants in Orlando, Florida and in Sauget, Illinois and an option
to purchase the Carson plant in California. The company has reached an agreement
with its lender to provide debtor-in-possession financing, subject to Bankruptcy
Court approval, to fund the company's immediate business operations while it
completes the sale process to SBC, which is subject to the approval of the Bankruptcy
Court as well.
WNI is the world's 21st largest nonwoven maker, with sales of $145 million
in 2006. It sells nonwovens for various applications such as mattresses, automobiles,
filters and furniture.
The company eventually had to file a petition for bankruptcy in spite of its
long-time efforts at management reconstruction measures, promoting restructuring.
After the spin-off of its nylon spunbond Cerex business in March 2007, WNI was
sold to Cerberus Capital and GE Capital, and its Oakland plant in California
was shut down in December and after the Commerce plant in California was sold
to Southern Fiber Inc. in February 2008, the Paltex plant in Louisiana, the Clearfield
plant in Utah and the Saint Louis plant in Michigan were successively shut down.
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