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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 OF EARLIEST EVENT REPORTED):
SEPTEMBER 29, 2000 (SEPTEMBER 25, 2000)
DYERSBURG CORPORATION
(Exact name of registrant as specified in charter)
TENNESSEE 1-11126 62-1363247
(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
15720 JOHN J. DELANEY DRIVE, SUITE 445, CHARLOTTE, NORTH CAROLINA 28277-2747
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (704) 341-2299
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Item 3. Bankruptcy or Receivership
On September 25, 2000, Dyersburg Corporation ("Dyersburg") and all of
its direct and indirect subsidiaries (collectively with Dyersburg, the
"Company") each filed a voluntary petition for relief under Chapter 11 of Title
11 of the United States Code with the United States Bankruptcy Court for the
District of Delaware (the "Court"). The cases have been consolidated for the
purpose of joint administration and were assigned to Judge Mary F. Walrath (case
nos. 00-3746 through 00-3759).
The Company is seeking approval of the Court to implement a financial
restructuring in accordance with a Joint Consolidated Plan of Reorganization
(the "Plan") and a related Disclosure Statement, both of which were filed with
the Court on September 25, 2000. In addition to the Court's approval,
confirmation of the Plan is subject to the Company's receiving votes to accept
the Plan from the requisite number and amount of holders of Dyersburg's 9.75 %
Senior Subordinated Notes due September 1, 2007 (the "Subordinated Notes"). As
previously announced, the Company has reached an agreement on the terms of the
financial restructuring reflected in the Plan with holders of approximately 50
percent of the Subordinated Notes. Lenders under the Company's credit facility
have also expressed support for the Plan.
Under the Plan, holders of the Subordinated Notes would receive new
common stock of reorganized Dyersburg representing 100 percent of all shares
issued and outstanding on the effective date of the Plan and an aggregate of $15
million of senior subordinated payment-in-kind notes with a seven-year term.
Holders of Dyersburg's existing common stock would receive two series of
warrants to acquire up to 15 percent of the new common stock of reorganized
Dyersburg. Under the Plan, lenders under the Company's credit facility as well
as the Company's employees, customers and trade creditors would not be impaired.
At a hearing held on September 26, 2000, the Court entered first day
orders granting the Company authority to pay the claims of its employees,
customers and trade creditors in the ordinary course of business. The Court has
also approved, on an interim basis, the Company's $96.6 million
debtor-in-possession financing facility.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995
This report contains certain forward-looking statements within the meaning of
the federal securities laws, all of which are intended to be covered by the safe
harbors created thereby. These statements include all statements regarding the
Company's intent, belief and expectations (such as statements concerning the
Company's liquidity and future operating and financial strategies and results)
and any other statements with respect to matters other than historical fact.
Investors are cautioned that all forward-looking statements involve known and
unknown risks and uncertainties (some of which are beyond the control of the
Company) including, without limitation, the ability of the Company to implement
the proposed restructuring, the ability of the Company to operate successfully
under Chapter 11, the ability of the Company to obtain necessary approvals of
the Plan, the ability of the Company to obtain necessary Court approvals, the
ability of the Company to continue to access availability under its
debtor-in-possession financing facility, risks associated with the Company's use
of substantial financial leverage, access to trade credit and terms from
suppliers, the ability of the Company to improve its operating performance,
restrictions imposed by the terms of the Company's debtor-in-possession
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financing facility, the Company's ability and success in achieving cost savings,
the Company's ability to compete with other suppliers and to maintain acceptable
gross margins, potential adverse developments with respect to the cost and
availability of raw materials and labor, risks associated with governmental
regulation and trade policies, and potential adverse developments regarding
product demand or mix. Moreover, although the Company believes that any
assumptions underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could prove to be inaccurate. Therefore, in
light of these known and unknown risks and uncertainties, there can be no
assurances that the forward-looking statements included in this report will
prove to be accurate and the inclusion of such information should not be
regarded as a representation by the Company or any other person that the
forward-looking statements included in this report will prove to be accurate.
The Company undertakes no obligation to update any forward-looking statements
contained in this report.
Item 7(c). Exhibits
None
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.
DYERSBURG CORPORATION
Date: September 29, 2000
/s/ William S. Shropshire, Jr.
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William S. Shropshire, Jr.
Executive Vice President, Chief Financial
Officer, Secretary and Treasurer
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