|Michael F. Easley, Governor
Buck Lattimore, Chairman
Thomas J. Bolch, Commissioner
Laura K. Mavretic, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers, Commissioner
Pamela T. Young, Commissioner
TO: All Interested Parties
FROM: Chairman Buck Lattimore
DATE: August 1, 2003
RE: Pillowtex, Inc.
On Wednesday, Kannapolis-based Pillowtex,
Inc. filed for Chapter 11 bankruptcy protection in U.S.
Bankruptcy Court in Delaware, listing $548 million in assets and $476
million in debts.
Pillowtex was self-insured for purposes of workers’ compensation
insurance claims prior to December 19, 1997. After that date, Pillowtex, Inc.
was insured. For claims occurring during
the period of insurance, claimants should not experience any disruption in
processing or payment of claims. For
claims occurring during the period of self-insurance our current understanding
is that Pillowtex has filed a Motion with the Bankruptcy Court seeking
permission to continue to process and pay certain workers’ compensation
claims. The Bankruptcy Court has not, as
of this writing, issued an order.
The Industrial Commission is in the process of determining the number of claims affected and determine a proper course of action for processing claims in the immediate future. It is anticipated that these determinations will be made in approximately three weeks.
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 Pillowtex claims should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or email@example.com.
Due to the volume of inquiries, email communication is requested if
possible, though not required.
The Industrial Commission website (www.comp.state.nc.us)
be updated as needed with additional information.