Pillowtex's sale to GGST LLC for $128 million will close within 30 days, the mill said, following a federal bankruptcy court's approval of the auction result on 8th Oct. But prior to the decision, the attorney for PT Partners and The Petters Company rose, seeking a "clarification" of whether court-approved bid procedures were followed during the auction, and whether the outcome was fair. The PT Partners consortium was the second place bidder at the auction,
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The controversy centered on Franco Mfg.'s late arrival as a member of the GGST consortium. Franco earlier failed to qualify as an independent bidder by the court-imposed deadline, according to attorneys.
PT attorney Paul Traub, complained that PT had been forbidden from coalescing with Broome & Wellington during the auction to offer a combined bid that may have been able to counter GGST's offer. Pillowtex attorney Michael Wiles denied the Franco involvement violated the bidding rules. 
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