1
Exhibit 99.1
DAN RIVER INC. RECEIVES COURT APPROVAL OF FIRST DAY MOTIONS
Court Grants Interim Approval of Debtor-in-Possession Financing and
Authorizes Continued Payment of Employee Wages and Benefits
Danville, Va., April 1, 2004 - Dan River Inc. (Other OTC: DVER.PK),
reported today that it received interim Court approval of a $145 million
debtor-in-possession (DIP) credit facility to fund its operations going
forward. The Company also received interim approval of a number of other
"first day motions" from the U.S. Bankruptcy Court for the Northern
District of Georgia.
On March 31, 2004, Dan River filed a voluntary petition to restructure
under Chapter 11 of the U.S. Bankruptcy Code. On April 1, 2004, the
Bankruptcy Court approved several of the Company's "first day motions" that
are intended to support the Company's employees, customers and vendors, and
provide other forms of operational and financial stability as Dan River
proceeds with its financial restructuring. With respect to employees, the
"first day orders" entered by the Bankruptcy Court authorize payment of pre-
petition and post-petition wages, salaries, commissions, vacation pay, life
insurance, medical, dental, and other qualified benefits.
The Court also granted interim approval of a new $145 million debtor-in-
possession (DIP) credit facility which is being provided by a group of
banks led by Deutsche Bank Trust Company Americas. Up to $40 million of
the facility is available during the interim period. The DIP financing,
combined with the Company's cash from operations, is expected to provide
sufficient funding for the Company's operations during the Chapter 11
process. A hearing for final approval of the DIP facility is scheduled for
April 27, 2004.
"We are pleased with the prompt approval by the Bankruptcy Court of our
`first day motions,' which will enable the Company to continue to operate
without interruption and meet normal business obligations," said Joseph J.
Lanier, Jr., Chairman and CEO of Dan River. "Moreover, these actions will
allow us to remain focused on serving customers, which will continue to be
our top priority during the Chapter 11 restructuring."
Lanier continued, "We are extremely grateful for the overwhelming support
we've received from our customers, our vendor partners and especially our
employees. Judging from the calls and other communications we've been
2
receiving, it is clear that there are a lot of people who are willing to go
the extra mile to help make sure we come through this process a stronger
and healthier company."
Lanier said that Dan River's operations have continued without interruption
and customer needs have been met. "Our operations continue to function
normally and we are maintaining our commitment to provide quality goods and
services to our customers."
More information about Dan River's Chapter 11 case is available on the
Company's website, http://www.danriver.com, or at http://www.bmccorp.net/
danriver. The case has been assigned to the Honorable Judge W. Homer
Drake, Jr. under case number 04-10990. Information on the case can also be
obtained on the Bankruptcy Court's web site with Pacer registration:
http://www.ganb.uscourts.gov.
Dan River Inc. is a leading manufacturer and marketer of textile products
for the home fashions, apparel fabrics and industrial textiles markets. The
company designs, manufactures and markets a coordinated line of value-added
home fashions products consisting of bedroom furnishings such as
comforters, sheets, pillowcases, shams, bed skirts, decorative pillows, and
draperies for the adult, juvenile, and institutional markets. Dan River
also manufactures and markets a broad range of high quality woven cotton
and cotton blend fabrics for apparel. Additionally, Dan River manufactures
and markets specialty engineered textile products used in making high-
pressure hoses and other industrial products.
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking
statements under applicable securities laws. The Company believes its
forward-looking statements are reasonable; however, undue reliance should
not be placed on such statements, which are based on current expectations.
Such forward-looking statements are subject to risks and uncertainties
which may cause actual results to differ. There can be no assurance that
the Company's restructuring will be successful. The Company's results of
operations could be materially and adversely affected by numerous market
and industry factors outside of its control; in particular, further
weakening of demand for the Company's products could have an adverse effect
on its operating results. Additional factors related to its restructuring
efforts that could cause actual results to differ from these forward-
looking statements include, but are not limited to, the following: the
Company's ability to obtain final court approval for its DIP facility;
restrictions which might be imposed by the court in relation to the
Company's motions filed with the bankruptcy court; the ability of the
3
Company to meet requirements imposed by the lenders under the Company's DIP
facility; risks associated with third parties seeking and obtaining court
approval to terminate or shorten plans of reorganization, for the
appointment of a Chapter 11 trustee or to convert the cases to chapter 7
cases; the ability of the Company to obtain trade credit and shipments and
terms with vendors and service providers for current orders; the Company's
ability to maintain contracts and licenses that are critical to its
operations; potential adverse developments with respect to the Company's
liquidity or results of operations; the ability of the Company to attract
and retain customers; and the ability of the Company to attract, retain and
compensate key executives. Additional risks associated with the Company's
business are detailed in its annual report on Form 10-K filed with the SEC
on February 21, 2003.