North Carolina
Industrial Commission

MEMORANDUM

TO:         All Interested Parties

FROM:   Chairman Buck Lattimore

DATE:    July 30, 2003

RE:         Bankruptcy of Harriet & Henderson Yarns, Inc.

            Harriet & Henderson Yarns, Inc. filed voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of North Carolina on July 15, 2003. Harriet & Henderson Yarns, Inc. is self-insured for workers’ compensation claims in the State of North Carolina since March 1, 1994.

            Our best current understanding is that Harriet & Henderson Yarns, Inc. is continuing to process and pay all workers’ compensation claims for current employees pursuant to Order of the Federal Bankruptcy Court. 

Pending “covered” workers’ compensation claims of former employees will be processed and paid by the  North Carolina Self-Insurance Guaranty Association.  All claims by former employees of Harriett and Henderson Yarns, Inc. should be directed to:

Ms. Catherine R. Stuart
Stuart Law Firm, PLLC
4101 Lake Boone Trail
Raleigh, North Carolina 27607
(919) 787-6050, Fax: (919) 787-9988
E-mail: cstuart@stuartlawfirm.com

The North Carolina Self-Insurance Guaranty Association is in the process of securing Harriett & Henderson Yarns, Inc. claim files of former employees.  It appears that Harriett & Henderson Yarns, Inc. has a limited number of claims in North Carolina.

Claims within the jurisdiction of the North Carolina Self-Insurance Guaranty Association are subject to an automatic stay of further proceedings for sixty (60) days from the date of notice to the Association of the insolvency in order to permit the Association to investigate claims provided that the payment of weekly compensation for incapacity is made during the period of stay.

            If any claimant does not receive benefits to which they are lawfully entitled or should benefits awarded be suspended or terminated for unexplained reasons, please notify the Industrial Commission. Questions or concerns regarding Harriet & Henderson Yarns, Inc. claims should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or gheen@ind.commerce.state.nc.us. Due to the volume of inquiries, email communication is requested if possible, though not required.

            The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.