Paragon Settles With P&G, K-C.

The Bankruptcy Court for the Northern District of Georgia has approved settlement agreements between Paragon Trade Brands, Norcross, GA, and Proctor & Gamble, Cincinnati, OH, and, separately, with Kimberly-Clark, Dallas, TX. The approval will assist the company in moving forward with the formulation and filing of a stand-alone plan of reorganization that embodies the terms of the settlement. At the same time, Paragon expects to pursue the auction process approved by the Bankruptcy Court in connection with a proposed investment by Wellspring Capital Management LLC to acquire Paragon as part of a plan of reorganization. In compliance with the Court's orders, competing bids to the Wellspring proposal were due no later than August 30, 1999 and an auction was scheduled to take place on September 2, 1999.