WestPoint Stevens ( WSPT) filed for Chapter 11 bankruptcy protection on Sunday, and the company's chief executive officer resigned as part of the deal.

CEO Holcombe T. Green resigned, and M.L. Fontenot, the company's current president and chief operating officer, will become interim CEO, WestPoint said. New independent members will be added to the company's board of directors.

Also in conjunction with its filing, WestPoint said it has arranged commitments for up to $300 million in debtor-in-possession financing from a group of banks led by Bank of America and Wachovia, in order to continue normal operations.

"We are committed to complete our financial restructuring as quickly as possible to preserve and enhance value for the business and our stakeholders," Fontenot said. "While the decision to reorganize was difficult and we deeply regret any adverse impact on our stakeholders, it gives us the opportunity to address crucial financial issues while ensuring that all of our normal business operations continue."

The West Point, Georgia-based home fashions marketing company filed for bankruptcy protection at the U.S. Bankruptcy Court for the Southern District of New York. WestPoint said its Canadian and European subsidiaries didn't file for reorganization and that normal operations will continue.

WestPoint makes the Martha Stewart brand of towels and linens for K-Mart.

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