NORCROSS, Ga. -- Paragon Trade Brands has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. The petition was filed with the federal court in the Northern District of Georgia.
a recent court decision that said it infringed on a patent of Cincinnati-based Procter & Gamble Co. The judgment entitles P&G to damages based on sales of Paragon diapers containing an "inner leg gather" feature. Paragon also plans to pursue an antitrust counterclaim that was previously dismissed by the court.
While a final number has not been entered by the court, Paragon estimates the liability to be approximately $160 million to $200 million. The company will continue to operate with a $75 million liquidity facility from Chase Manhattan Bank.
Paragon manufactures store-brand infant disposable diapers, as well as training pants, feminine care and adult incontinence items and household cleaners and air freshener products.
