SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 24, 2002
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GALEY & LORD, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-20080 56-1593207
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(Commission File Number) (IRS Employer Identification Number)
980 Avenue of the Americas, New York, NY 10008
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code (212) 465-3000
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ITEM 5. OTHER EVENTS
As previously reported, on February 19, 2002, (the "Filing Date") Galey
& Lord, Inc. (the "Company") and each of its domestic subsidiaries (together
with the Company, the "Debtors") filed voluntary petitions under Chapter 11 of
Title 11, United States Code (the "Bankruptcy Code") in the United States
Bankruptcy Court for the Southern District of New York (Case Nos. 02-40445
through 02-40456 (ALG)). The Company and such subsidiaries remain in possession
of their assets and properties and continue to operate their businesses and
manage their properties as debtors-in-possession pursuant to Sections 1107(a)
and 1108 of the Bankruptcy Code. On February 19, 2002, the Company and such
subsidiaries filed a motion seeking to enter into a credit facility of up to
$100 million in debtor-in-possession ("DIP") financing with First Union National
Bank (the "Agent") and Wachovia Securities, Inc. On February 21, 2002, the
Bankruptcy Court entered an interim order approving the facility and authorizing
immediate access to $30 million. On March 19, 2002, the Bankruptcy Court entered
a final order approving the entire $100 million DIP financing.
As permitted under the terms of the final DIP financing agreement (the
"DIP Agreement"), the Company has exercised its right to permanently reduce the
Total Commitment (as defined in the DIP Agreement) under the DIP Agreement from
$100 million to $75 million, effective September 24, 2002. At September 24,
2002, the Company had no outstanding borrowings under the DIP Agreement (except
for an outstanding standby letter of credit of approximately $3.9 million) and
the Company had domestic cash on hand of approximately $34.5 million.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits: None
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
GALEY & LORD, INC.
By: /s/ Leonard F. Ferro
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Leonard F. Ferro
Vice President
Date: September 27, 2002