From the Reporters
Carole Matthews

Support for Malden Mills

 

Aaron Feuerstein's bid to buy back control of Malden Mills has rallied support in Washington, as reported today in "Lawmakers Lobbying for Malden Mills" in the Boston Globe. It's hard to say, however, if the political backers will be enough to sway the U.S. Export-Import Bank to provide the $35 million in loan guarantees Feuerstein needs to buy back the Lawrence, Mass.-based textile maker from General Electric Co. (GE gained control when Feuerstein had to file bankruptcy protection in 2001 after Feuerstein's heroic efforts to save his company after a devastating fire.) Back in August, Mike Hofman posted a short piece about Malden Mills' emergence from bankruptcy, but today, Feuerstein still struggles to secure the capital he needs to regain control of the business.

Backers from the Senate and House are trying to sway the four-member board of the Ex-Im Bank to make the loan guarantees. Half of the $35 million was approved in August, and some Ex-Im Bank staffers have recommended the full amount be guaranteed, but bank leaders overruled the staff recommendations and imposed stiffer loan terms, which make it virtually impossible for Feuerstein to secure any further loans if this one is granted.