OTHER NEWS - July 23, 1991
From Times Staff and Wire Reports
Farley Debtholders May Push for Bankruptcy: A group of Chicago financier William Farley’s creditors is threatening to force him into bankruptcy court on Wednesday if there is no progress in deadlocked negotiations over $172 million of defaulted notes. Farley’s holding company, Farley Inc., owns Fruit of the Loom, the underwear, socks and sweat shirt maker. Farley’s biggest problem is the heavy debt load from a never-completed buyout of textile maker West Point-Pepperell Inc. The West Point deal came just as the junk bond market collapsed, leaving Farley with about 95% of the company and unable to raise enough money to buy the other 5%.
