SALANT CORPORATION RESTRUCTURING PLAN IS CONFIRMED BY COURT —COMPANY EXPECTS TO EMERGE FROM CHAPTER 11 BY APRIL 30, 1999
April 23, 1999
This week, Salant Corporation (SLNT) announced that at a hearing held on April 16, 1999 the Bankruptcy Court confirmed it Chapter 11 Plan of Reorganization. Salant’s pre-negotiated chapter 11 plan received the support of all of the holders of the Company’s 10-1/2% Senior Secured Notes and over 96% of its stockholders who voted.
Confirmation of the chapter 11 Plan of Reorganization comes only three and a half months after Salant filed for chapter 11 protection on December 29, 1998. In accordance with Salant’s Plan of Reorganization, the company has successfully exited its non-core businesses, including the sale of two divisions in separate transactions, and will now focus primarily on its Perry Ellis men’s apparel business.
Sale of John Henry and Manhattan Businesses to Supreme International
On March 29, 1999, Salant completed the sale of its John Henry and Manhattan businesses to Supreme International Corporation (SUPI). The transaction included the sale of the John Henry, Manhattan and Lady Manhattan trade names, related dress shirt inventory and other selected assets. The total value of the transaction amounts to approximately $44 million, of which $27 million relates to the trade names and other selected assets and $17 million relates to the dress shirt inventory. The John Henry brand is distributed in department store chains and the Manhattan brand is distributed to mass merchants.
Sale of Children’s Apparel Division to Wormser Company
On March 19, 1999, Salant completed the sale of certain assets of its children’s apparel division to Wormser Company. Wormser purchased the Dr. Denton trademark, Salant’s rights under various licenses, inventory, equipment and certain other assets related to the Dr. Denton name and the licenses.
For further information, please contact Michael F. Gries and Kenneth M. Harrell of Conway, Del Genio, Gries & Co., LLC, a firm providing specialized corporate finance advisory services focused on mergers and acquisitions and restructurings, at (212) 813-1300.