UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report Date (Date of earliest event reported) OCTOBER 8, 1996
ITHACA INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 33-52852 56-1385842
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification NO.)
HIGHWAY 268 WEST, P.O. BOX 620, WILKESBORO, NC 28697
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (910) 667-5231
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Item 3. Bankruptcy or Receivership.
On October 8, 1996, Ithaca Industries, Inc. (the "Company")
announced that its Plan of Reorganization dated August 29, 1996 (the "Plan")
(filed with the Securities and Exchange Commission as Exhibit A to Exhibit
2.1 to the Company's Current Report on Form 8-K dated September 3, 1996,
and incorporated herein by reference) had been accepted by both classes of
creditors entitled to vote on the Plan. Such approval was solicited
pursuant to a Disclosure Statement dated August 29, 1996 (the "Disclosure
Statement") (filed with the Securities and Exchange Commission as
Exhibit 2.1 to the Company's Current Report on Form 8-K dated September 3,
1996). The Disclosure Statement is incorporated herein by reference.
Capitalized terms used and not otherwise defined herein shall have the
respective meaning ascribed thereto in the Disclosure Statement.
The breakdown of votes to accept the Plan that were timely received
by the Agent in respect of holders of Allowed Bank Group Secured Claims is as
follows: (A) 11 holders of Allowed Bank Group Secured Claims (constituting
100% of such holders) having an aggregate amount of $101,527,231.33 of Allowed
Bank Group Secured Claims (constituting 100% of such claims) voted to accept
the Plan and (B) no holders of Allowed Bank Group Secured Claims voted to
reject the Plan. The breakdown of votes to approve the Plan that were timely
received by the Agent in respect of holders of Allowed Noteholders Claims is
as follows: (A) 109 holders of Allowed Noteholders Claims (constituting
97.3214% of such holders) having an aggregate amount of $102,780,000.00 of
Allowed Noteholders Claims (constituting 99.9514% of such claims) voted to
accept the Plan and (B) 3 holders of Allowed Noteholders Claims (constituting
2.6786% of such holders) having an aggregate amount of $50,000.00 of Allowed
Noteholders Claims (constituting (0.0486% of such claims) voted to reject the
Plan.
After receiving the acceptances as set forth above, the Company
filed a voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the District of
Delaware on October 8, 1996. At the same time the Company filed the Plan
which is subject to the approval of the Bankruptcy Court. A hearing to
consider such approval has been scheduled for November 22, 1996. The Company
is a debtor-in-possession in its Chapter 11 case, which is captioned In re
Ithaca Industries, Inc., Debtor (Chapter 11 Case No. 96-1583(HSB)).
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c)EXHIBITS.
EXHIBIT NO. DESCRIPTION
2.1 Disclosure Statement dated August 29, 1996
(including Plan of Reorganization dated
August 29, 1996, attached as Exhibit A
thereto). Filed as Exhibit 2.1 to the
Company's Current Report on Form 8-K dated
September 3, 1996.
99.1 Press Release dated October 8, 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
ITHACA INDUSTRIES, INC.
Date: October 8, 1996 By: /s/ ERIC N. HOYLE
Eric N. Hoyle
Senior Vice President - Finance
and Administration Chief Financial
and Accounting Officer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
2.1 Disclosure Statement dated August 29, 1996
(including Plan of Reorganization dated
August 29, 1996, attached as Exhibit A
thereto). Filed as Exhibit 2.1 to the
Company's Current Report on Form 8-K dated
September 3, 1996.
99.1 Press Release dated October 8, 1996.
Exhibit 99.1
FOR IMMEDIATE RELEASE
For: Ithaca Industries, Inc.
ITHACA INDUSTRIES IMPLEMENTS RESTRUCTURING THROUGH
PRE-PACKAGED PLAN OF REORGANIZATION
______________________________________________________________________________
WILKESBORO, NORTH CAROLINA, OCTOBER 8, 1996 -- Ithaca Industries, Inc.
announced today that it has received the required acceptance of its
prepackaged plan of reorganization from its noteholders and bank lenders and
that it has filed the plan for court approval in Delaware. The reorganization
plan will give holders of Ithaca's 11.125% Senior Subordinated Notes 100% of
the outstanding common stock of the Company and provide for a restructuring of
Ithaca's bank credit agreement. The Company does not anticipate any difficulty
in completing the plan.
Under the terms of the plan, the claims of the Company's trade creditors will
be unimpaired and will be paid in full. The company also said that employee
wages and benefits will continue to be paid as usual.
"We are pleased to have received such a high level of support from our
noteholders and bank group," said Jim D. Waller, Ithaca's Chairman and Chief
Executive Officer. "By implementing our restructuring through a prepackaged
reorganization, we will be able to complete our restructuring quickly and
efficiently and continue meeting our commitments to our customers, vendors
and employees without interruption."
"This restructuring will eliminate over fifty percent of Ithaca's debt and
result in a significantly improved balance sheet, allowing us to take
advantage of the increased operational efficiencies that we have already
achieved."
Ithaca Industries, Inc. is a leading designer, marketer and manufacturer of
private label underwear, hosiery and T-shirts.
