Leading fabric maker Guilford Mills Inc on Friday revealed it has emerged from bankruptcy protection.

The North Carolina-based company said it now has senior debt of around $145 million compared to $270m when it filed for Chapter 11 in March.

It has spent the past few months selling businesses and exiting selected markets in a bid to focus on selected apparel businesses and automotive and technical textiles.

In a statement, Guilford explained its senior debt consists of a three-year revolving credit facility and a three-year loan, with senior lenders now owning 90 percent of the company's equity. Its reorganisation plan was approved last month.

Delighted Guilford Mills president and CEO, John Emrich, said: "I spent a few days after the court's September 19 approval visiting with many of our 3,500 associates, thanking them for their tireless efforts to bring this reorganization to a successful conclusion.

"I saw a work force that is fired up and ready to take on the world. I'm very excited about what we're going to accomplish over the next year."