Polartec manufacturer Malden Mills Industries Inc on Monday filed a reorganisation plan that should see it emerge from Chapter 11 bankruptcy protection by the end of the year.

The Massachusetts-based company said in a statement Aaron Feuerstein would remain as president and CEO under the plan and pledged to repay over time the $140 million owed to creditors - its main one being General Electric Capital Corp.

Malden Mills employs around 1,200 workers and its Polartec fabric is used in high-end sweaters and military uniforms.

Mr Feuerstein hit the headlines in 1995 when he kept on paying workers while its main mill was rebuilt after being wrecked by a devastating blaze.

Speaking earlier this month, EVP of sales and marketing, Cesar Aguilar said: "Malden Mills is emerging as a more efficient, highly focused organisation with one of the most valuable brands in our industry. 2003 is expected to be a strong year for Malden Mills with accelerating sales growth."