Chicopee Manufacturing parent company PGI announces dismissal of nvoluntary petition

NORTH CHARLESTON, S.C., - Polymer Group,<br> Inc. and the Petitioning Creditors announced today that they have reached an agreement that results in the dismissal of the Involuntary Petition filed against Polymer Group, Inc. on March 25, 2002 in the Federal Court, District of South Carolina to permit the parties to discuss and negotiate the terms of a potential restructuring of the Company. <br> <br> The Petitioning Creditors and other Creditors of Polymer Group, Inc. have agreed to continue financial restructuring discussions through May 12, 2002. <br> <br> The Agent on behalf of the Company&#39;s Senior Lenders supported the dismissal of the Petition.<br> <br> As a result of this agreement, Polymer Group, Inc. will be dismissed from the Involuntary Chapter 11 subject to applicable notice requirements, and is permitted to continue business operations as normal as if no Involuntary Petition had been filed.<br> <br> On March 15, 2002, PGI announced a comprehensive financial restructuring<br> that proposes to reduce the Company&#39;s debt by more than $550 million. In conjunction with the comprehensive financial restructuring, the Company launched an exchange offer for all of its Senior Subordinated Notes not held by CSFB Global Opportunities Partners. <br> <br> In order to accommodate the agreement<br> with the Petitioning Creditors, the Company has agreed to extend the exchange offer to May 15, 2002.<br> <br>

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