Fabric manufacturer Guilford Mills Inc on Thursday said it expects to emerge from Chapter 11 bankruptcy protection in the next 10 days after a bankruptcy court approved its reorganisation plan.

The North Carolina-based company filed for Chapter 11 six months ago and has since sold several businesses and exited selected markets as it looks to focus on certain apparel businesses and automotive and technical textiles.

The plan's major provisions include the firm's suppliers being paid in full and senior lenders acquiring a 90 per cent stake in the company with shareholders owning a 10 per cent stake.

Senior debt, which will consist primarily of a three-year revolving credit facility and a three-year term loan, will total about $145 million - down from $270m.

"After nearly two years of restructuring and six months of financial reorganisation, we have Guilford positioned exactly where we've wanted all along," said its president and CEO, John Emrich. "I'm thrilled with the way this company has performed these past six months.

"When we started this process, we said we would complete the reorganisation relatively quickly. We said we would pay our trade creditors in full - an unusual step in a bankruptcy case like this. And we said we would continue to serve our customers without any interruptions."

He added: "We delivered on everything we said we were going to do. That's a tribute to the extensive negotiations we conducted with our lenders even before we filed, and the incredible efforts of all our associates during the past six months. I couldn't be more proud of this company."