Texfi Industries announced today it has arranged a new revolving working capital financing with CIT Commercial Services, a division of The CIT Group (NYSE: CIT) of $25m.

The financing is for one year and requires the company to submit a reorganisation plan by April, 2001. Texfi filed for protection under Chapter 11 of the Bankruptcy Act in the Southern District of New York on February 15, 2000, and has been operating as Debtor-in-Possession since that date. The company expects to submit its reorganisation plan ahead of schedule in 2001.

CEO Andrew J. Parise said: "We are extremely pleased to have this increased and longer term financing available to the company. We have made great progress over the past few months and this facility will enable us to concentrate on strengthening our business and building our market share."

"CIT is delighted to support Texfi in its reorganisation effort," said John F. Daly, president of CIT Commercial Services. "CIT has a long-standing relationship with Texfi and we are confident in management's ability to facilitate the reorganisation."

About Texfi Industries
Texfi Industries is a diversified manufacturer and marketer of textiles. The company manufactures woven finished fabrics sold throughout the United States and exported to Asian and European markets. Texfi has manufacturing plants in Rocky Mount and Haw River, North Carolina, and Jefferson, Georgia.