Elastic yarn and narrow elastic fabric manufacturer Worldtex, Inc announced today its Chapter 11 Plan of Reorganisation has become effective and it has successfully emerged from reorganisation proceedings.

As a result of the restructuring, which was funded by a $38 million senior secured credit facility led by AmSouth Capital Corp, private equity firm GSC Partners will hold a controlling interest in Worldtex's equity.

The credit facility will be used to refinance the company's debtor-in- possession financing agreement and industrial revenue bonds and help fund future working capital needs.

Worldtex CEO Barry Setzer said: "We are extremely pleased with the outcome of this restructuring transaction, which has significantly reduced the company's debt and aligned Worldtex with the experienced equity sponsorship of GSC Partners.

"We have especially appreciated the continued support, loyalty and dedication of our customers, employees and creditors under the challenging operating circumstances of the last several quarters. Worldtex looks forward to building on its history as a leading global manufacturer of covered elastic yarn and narrow elastic fabrics."