Bankrupt Burlington Industries has been told it can exit a jeans sandblasting and stonewashing joint venture in Mexico that has cost the textile company around $20 million.

Federal judge Randall Newsome will allow Burlington's joint venture partner JC Viramontes to take its stake in the operations and assume $500,000 of debt for which Burlington was responsible.

According to documents filed in court, Burlington will not recover its investment in the venture but will avoid future losses by leaving it behind.