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Fabric maker Burlington Industries Inc. filed for Chapter 11 bankruptcy protection Nov. 15, adding another major textile player to the list of troubled companies blaming trade policies and cheap imports for their undoing.
The Greensboro, N.C.-based textile company said it has only $60 million in cash left and couldn't service its $1.1 billion in debt. It's now seeking the approval of the U.S. Bankruptcy Court in Wilmington, Del., to tap $125 million of a $190 million debtor-in- possession financing that J.P. Morgan Chase & Co. is providing.
If the court doesn't approve the $125 million amount, the company said it will seek release of $75 million.
Burlington noted in its Chapter 11 filing that it holds assets of $1.2 billion. Its revenues in 2000 were $1.6 billion.
Other textile makers have succumbed to poor market conditions. Burlington's filing comes just one day after the maker of Lee and Wrangler jeans, VF Corp., also based in Greensboro, said it...