Exhibit 99.1
GLENOIT CORPORATION RECEIVES EXTENSION OF
FINANCING TERMS THROUGH JUNE, 2001
New York, NY, January 5, 2001--Glenoit Corporation, its U.S.
subsidiaries and its parent Glenoit Universal (collectively, "Glenoit") have
concluded negotiations on a six month extension of Glenoit's current financing
facility, through June 29, 2001. This extension will provide Glenoit with up to
$12.0 million in additional seasonal financing during that period. Consistent
with its financial projections, Glenoit has already repaid all post-bankruptcy
borrowings to date.
In addition, Glenoit, its lenders, and its primary unsecured creditors
have reached an agreement for the continued employment of Glenoit's president
and chief executive officer, Mr. Thomas J. O'Gorman. It is also anticipated that
the United States Bankruptcy Court for the District of Delaware will approve his
continued employment at a hearing scheduled for January 17, 2001.
On December 21, 2000, the Bankruptcy Court granted interim approval of
the financing extension, and a final hearing on the extension will also take
place on January 17. In addition to customary financial requirements, one of the
conditions to the continued financing is the appointment of a financial advisor
by Glenoit by January 17, 2001. Glenoit's senior management has identified a
financial advisor acceptable to its lenders and its primary unsecured creditors,
and it is anticipated that the Bankruptcy Court will approve this appointment at
the January 17 hearing, as well.
Headquartered in New York City, Glenoit Corporation is a domestic
manufacturer of small rugs, knit pile fabrics and an importer and manufacturer
of home products such as quilts, comforters, shams, shower curtains, table
linens, pillows and pillowcases with operations in North Carolina, Ohio,
California and Canada.
