Yarn maker Unifi, Inc., USA, is owed approximately $8.2 million by bankrupt auto-interiors maker Collins & Aikman, and will take a hit to its fourth quarter earnings as a result.
The sum owed by Collins & Aikman Corp., represents 6.4% of Unifi's net receivables as of the close of its fiscal third quarter on March 27. Unifi will take a pre-tax charge for this amount in its fourth quarter earnings which will impact its EBITDA forecast for the fiscal year ending June 26, 2005.
"Collins & Aikman has been a valued partner throughout Unifi's history, and with proper and prudent safeguards in place, Unifi will support their day- to-day operations during the Chapter 11 process," said Bill Lowe, Unifi's chief operating officer. "Although the impact on our fourth quarter results will be significant, the strength of our balance sheet will allow us to stay focused on our growth strategies, both domestically and globally."
