SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) February 15, 2000
TEXFI INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-6797 56-0795032
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
1430 Broadway, 13th Floor
New York, New York 10018
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(Address of Principal Executive Offices)
(Zip Code)
(212) 930-7200
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former name or address, if changed from last report)
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Item 5. Other Events.
On February 15, 2000, the Company filed a voluntary petition for relief and
reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern
District of New York. Texfi's petition has been assigned case number 00-10603.
During the past two years, the Company has endured substantial volume cuts
directly as a result of the 1998 Asian financial crisis that generated a
flooding of U.S. markets with low priced goods and triggered a price war between
U.S. and Asian manufacturers. During this same period, the Company's lenders
have imposed harsh financial burdens and restrictions on collateral borrowing
that have hampered the Company's ability to effectively respond to these market
changes. In addition, the Company's primary manufacturing facility located in
Rocky Mount, North Carolina was unexpectedly closed during peak operations
following two natural disasters, Hurricane Floyd in September 1999 and the
winter storms in January 2000.
The Company's management has evaluated several restructuring alternatives and
determined that it can best accomplish its goals in the context of a Chapter 11
proceeding. This filing should significantly reduce the Company's debt structure
and provide a firm framework upon which it can operate in the future. The
Company anticipates that the stock currently held by common shareholders will
not have any value pursuant to this reorganization process.
Management has retained the services of Ernst & Young Restructuring LLP and
McDermott, Will & Emery to assist in this reorganization process. The Company
continues to manage and operate its business as a debtor-in-possession. It
expects to have the working capital necessary to meet its daily business
obligations and inventory requirements and serve customers in a timely and
efficient manner.
<PAGE>
Item 7. Financial Statements and Exhibits.
(a) No Exhibits are attached
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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.
Date: February 24, 2000
TEXFI INDUSTRIES, INC.
By: /s/ Robert P. Ambrosini
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Robert P. Ambrosini
Executive Vice President and Chief
Financial Officer
