Legler, the 150-year-old Italian fabric and denim specialist, may not be facing Chapter 11 after all.

According to Simone Cantamessa, General Manager of Textfer Spa (formerly Legler) in Ponte San Pietro, near Bergamo, Italy, the company avoided going into bankruptcy with the aid of the Italian government. Legler declared insolvency last August. Legal counsel Emanuele Rimini is now seeking formal protection for the company under prodi bis, which permits companies facing financial difficulties, such as Alitalia, to freeze and settle the company’s debts.

“This procedure might help re-organize the present industrial synergies of the group,” Rimini said recently. “The eventual sale of the group might only be taken into consideration after the extraordinary administration state will be formally declared.”

Currently the company’s debts are €125.2 million. Gains from last year’s activity were €41.5 million. Most of its employees are now receiving severance pay.

Legler was also recently renamed as Texfer. “The company’s renaming was done with the aim to preserve its reputation and to avoid its being associated with a possible state of controlled administration,” said Cantamessa.