Textile maker Galey & Lord Inc has emerged from bankruptcy after filing for Chapter 11 protection in February 2002.

The North Carolina-based company, which has undergone aggressive restructuring since the filing, now has access to $70 million in financing from GE Capital Corp, about $22m of which was drawn upon emergence.

The reorganised company is now 99 per cent owned by a group led by Wachovia Securities, who swapped $300m in secured claims for the stake, while holders of about $300m in unsecured notes own the remaining one per cent.

The latter group also retains the right to acquire an additional 10 per cent of Galey & Lord.

"We are pleased to emerge from Chapter 11, and I would like to thank the company's customers, employees and suppliers for their continued support," newly appointed CEO John Heldrich said.

"Their loyalty has made it possible to reach this point."

Former CEO Arthur Wiener has retired from the company as part of its surfacing from bankruptcy.