Exhibit 10.1
 
AMENDMENT NO. 20 TO CREDIT AGREEMENT
 
This AMENDMENT NO. 20 TO CREDIT AGREEMENT (this “Amendment”) is dated as of
August 12, 2010 by and among INTERNATIONAL TEXTILE GROUP, INC., a Delaware
corporation (“ITG”), the other Borrowers and Credit Parties signatory hereto,
GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, for itself and as
Agent (“Agent”), and the other Lenders signatory hereto.  Unless otherwise
specified herein, capitalized terms used in this Amendment shall have the
meanings ascribed to them in the Credit Agreement (as hereinafter defined).
 
R E C I T A L S:
 
WHEREAS, Borrowers, the other Credit Parties, the Agent and the Lenders entered
into that certain Credit Agreement dated as of December 29, 2006 (as amended,
supplemented, restated or otherwise modified from time to time, the “Credit
Agreement”); and
 
WHEREAS, the parties to the Credit Agreement have agreed to an amendment to the
Credit Agreement as set forth herein;
 
NOW, THEREFORE, in consideration of the premises contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
 
1              Amendments to Credit Agreement.
 
1.1         Section 5.4 of the Credit Agreement is hereby amended by (i)
deleting the “and” at the end of clause (p) thereof, (ii) deleting the “.” at
the end of clause (q) thereof and replacing it with “; and” and (iii) inserting
the following new clause (r) immediately at the end thereof:
 
“(r)        the ITG – Phong Phu JV Loan; provided that (i) ITG shall have
obtained a valid Lien on substantially all of the assets of ITG – Phong Phu
Limited Company pursuant to an Assets Mortgage Agreement and Priority Agreement
substantially in the form attached hereto as Exhibit 5.4(r), which Lien (x)
shall be junior in priority only to the Lien held by Techcombank on such assets
and (y) shall secure ITG – Phong Phu Limited Company’s obligations to ITG under
the ITG – Phong Phu JV Loan, (ii) at the time any amount is funded by ITG as
part of such loan, no Default or Event of Default has occurred and is
continuing, (iii) the entire principal amount of such loan shall have been
funded by ITG no later than September 30, 2010 and (iv) to the extent such loan
is evidenced by a promissory note or other negotiable instrument, such
promissory note or other negotiable instrument shall be in form and substance
satisfactory to the Agent and delivered to the Agent in original copy together
with instruments of transfer executed in blank.”
 
 
 

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1.2         Section 5.5(h) of the Credit Agreement is hereby amended by (i)
deleting the “and (iii)” contained therein and replacing it with “, (iii)” and
(iii) inserting the following immediately prior to the “;” at the end thereof:
 
“and (iv) the WLR Phong Phu JV Loan”
 
1.3         Section 11.1 of the Credit Agreement is hereby amended by amending
and restating the definition of “18% Senior Note Documents” in its entirety as
follows:
 
“‘18% Senior Note Documents’ means (i) the Senior Subordinated Note Purchase
Agreement, dated as of June 6, 2007 (as amended, restated, supplemented or
otherwise modified from time to time in accordance with the Noteholder
Subordination Agreement, the “Senior Note Purchase Agreement”) among ITG and the
purchasers from time to time party thereto (the “Senior Note Purchasers”), (ii)
the $80,000,000 aggregate principal amount of 18.00% Senior Subordinated Notes
due 2011 issued to the Senior Note Purchasers on June 6, 2007 (such notes, the
“Initial Notes”), any “PIK Notes” (as defined in the Initial Notes) and any such
notes issued in substitution for the Initial Notes pursuant to Section 14 of the
Senior Note Purchase Agreement, (iii) the WLR Phong Phu JV Loan and (iv) the
Amended and Restated Pledge Agreement dated as of April 15, 2008 made by ITG in
favor of the Senior Note Purchasers.”
 
1.4         Section 11.1 of the Credit Agreement is hereby amended by inserting
the following defined term in proper alphabetical order thereto:
 
“‘ITG – Phong Phu JV Loan’ means a loan by ITG in an aggregate principal amount
not to exceed $15,000,000 which is made to ITG – Phong Phu Limited Company from
the proceeds of the WLR Phong Phu JV Loan, pursuant to a loan agreement
substantially in the form attached hereto as Exhibit 11.1(g).”
 
“‘WLR Phong Phu JV Loan’ means that certain Subordinated Indebtedness issued
pursuant to the Senior Note Purchase Agreement, the proceeds of which shall be
used solely to fund the ITG – Phong Phu JV Loan.”
 
1.5        The definition of “Subordinated Indebtedness” set forth in Section
11.1 of the Credit Agreement is hereby amended by inserting the following
parenthetical immediately after the word “unsecured” found therein:
 
“(other than with respect to the 18% Senior Note Subordinated Indebtedness which
may be secured to the extent otherwise permitted hereby)”
 
1.6        The Credit Agreement is hereby amended by deleting each occurrence of
the words “ITG – Phoung Phu Joint Venture Company”  and
 
“ITG – Phong Phu Joint Venture Company” and, in each case, inserting in lieu
thereof the words “ITG – Phong Phu Limited Company”.
 
1.7        The Credit Agreement is hereby amended by inserting Exhibit 5.4(r)
and Exhibit 11.1(g) attached hereto as Annex A and Annex B, respectively, as new
Exhibits thereto.
 
 
 

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2              Representations and Warranties.  In order to induce Agent and the
Lenders to enter into this Amendment, each Borrower and each other Credit Party
represents and warrants to Agent and each Lender (which representations and
warranties shall survive the execution and delivery of this Amendment), that:
 
(a)         the execution, delivery and performance by each Credit Party of this
Amendment has been duly authorized by all necessary corporate and partnership
action and this Amendment is a legal, valid and binding obligation of such
Credit Party enforceable against such Credit Party in accordance with its terms;
and
 
(b)         upon the effectiveness of this Amendment, all of the representations
and warranties contained in the Credit Agreement and in the other Loan Documents
(other than those which speak expressly only as of an earlier date) are true and
correct in all material respects on and as of the date of the effectiveness of
this Amendment after giving effect to this Amendment and the transactions
contemplated hereby.
 
3              Conditions to Effectiveness.  This Amendment shall be effective
on the date when this Amendment shall have been duly executed and delivered by
each Borrower, each other Credit Party party hereto, Agent and the Required
Lenders.
 
4              Miscellaneous.
 
4.1         Effect; Ratification.
 
(a)         Except as specifically set forth above, the Credit Agreement and the
other Loan Documents shall remain in full force and effect and are hereby
ratified and confirmed.  Without limiting the generality of the foregoing, each
Credit Party reaffirms its guaranty of the Obligations and the Liens securing
those guaranties.
 
(b)        The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of Agent or any Lender under
the Credit Agreement or any other Loan Document, nor constitute amendment of any
provision of the Credit Agreement or any other Loan Document, except as
specifically set forth herein.  Upon the effectiveness of this Amendment, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein” or words of similar import shall mean and be a reference to the Credit
Agreement as amended hereby.
 
(c)         Each Credit Party acknowledges and agrees that the amendments set
forth herein are effective solely for the purposes set forth herein and that the
execution and delivery by Agent and the Lenders of this Amendment shall not be
deemed (i) except as expressly provided in this Amendment, to be a consent to
any amendment, waiver or modification of any term or condition of the Credit
Agreement or of any other Loan Document, (ii) to create a course of dealing or
otherwise obligate Agent or Lenders to forbear, waive, consent or execute
similar amendments under the same or similar circumstances in the future, or
(iii) to amend, prejudice, relinquish or impair any right of Agent or Lenders to
receive any indemnity or similar payment from any Person or entity as a result
of any matter arising from or relating to this Amendment.
 
 
 

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4.2        Counterparts and Signatures by Fax.  This Amendment may be executed
in any number of counterparts, each such counterpart constituting an original
but all together one and the same instrument.  Any party delivering an executed
counterpart of this Amendment by fax shall also deliver an original executed
counterpart, but the failure to do so shall not affect the validity,
enforceability or binding effect of this Amendment.
 
4.3        Severability.  In case any provision in or obligation under this
Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.
 
4.4        Loan Document.  This Amendment shall constitute a Loan Document.
 
4.5        GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL, IN ALL RESPECTS, INCLUDING MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED
STATES OF AMERICA.
 
[Signature Pages Follow]
 
 
 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date first above written.
 

   
BORROWERS:

INTERNATIONAL TEXTILE GROUP, INC.
BURLINGTON INDUSTRIES LLC
CONE JACQUARDS LLC
CONE DENIM LLC
CARLISLE FINISHING LLC
SAFETY COMPONENTS FABRIC
TECHNOLOGIES, INC.

By: /s/ Craig J. Hart                                         
Name:  Craig J. Hart
Title:    Vice President

NARRICOT INDUSTRIES LLC

By: International Textile Group, Inc., its sole member

By: /s/ Craig J. Hart                                         
Name: Craig J. Hart
Title:   Vice President

 
 
 

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OTHER CREDIT PARTIES:

APPAREL FABRICS PROPERTIES, INC.
BURLINGTON INDUSTRIES V, LLC
CONE ADMINISTRATIVE AND SALES LLC
CONE INTERNATIONAL HOLDINGS II, INC.
INTERNATIONAL TEXTILE GROUP
ACQUISITION GROUP LLC
BURLINGTON WORLDWIDE INC.
CONE DENIM WHITE OAK LLC
CONE INTERNATIONAL HOLDINGS, INC.
CONE ACQUISITION LLC
WLR CONE MILLS IP, INC.

By: /s/ Craig J. Hart__________________
Name: Craig J. Hart
Title:   Vice President

VALENTEC WELLS, LLC
 
By: International Textile Group, Inc.,
its sole member

 
By: /s/ Craig J. Hart__________________
Name: Craig J. Hart
Title:   Vice President

 
 
 

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AGENT AND LENDERS:
 
 
GENERAL ELECTRIC CAPITAL CORPORATION,
as the Agent and a Lender
 
By: /s/ James DeSantis                                   
Title:  Its Duly Authorized Signatory

 
 
 

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UBS LOAN FINANCE LLC, as a Lender

By: /s/Irja R. Otsa                                            
Name:  Irja R. Otsa
Title:    Associate Director

By: /s/Mary E. Evans                                      
Name:  Mary E. Evans
Title:    Associate Director

 
 
 

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BANK OF AMERICA, N.A., as a Lender

By: /s/ John Yankauskas                                
Name: John Yankauskas
Title:   Sr. Vice President

 
 
 

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ANNEX A

Exhibit 5.4(r)
Form of Assets Mortgage Agreement and Priority Agreement

[see attached]
 
 
 

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ANNEX B

Exhibit 11.1(g)
Form of ITG – Phong Phu JV Loan

[see attached]