U.S. District Judge Margaret B. Seymour found the employees in contempt Monday for filing an involuntary bankruptcy petition after she had appointed a receiver to oversee the sale of the assets of Spartan International, the mill's parent company.

John B. ''Jack'' Long: Attorney for King Mill employees filed a motion to withdraw their bankruptcy petition. FILE/STAFF

The employees' attorney, John B. ''Jack'' Long, filed the request for dismissal in U.S. Bankruptcy Court in Augusta on Friday, the deadline for complying with Judge Seymour's order.

Several former employees who had attended Monday's hearing in Spartanburg predicted the judge would not rule in their favor even before she issued her written order.

''When I saw them damn GE lawyers walk out of her chambers right when we walked in the courtroom I knew good and well then we were screwed,'' said Gloria Renew, 55, who worked at the mill for more than 13 years as a weaver. ''Everybody seen it. But we ain't through with them. We ain't through by a long shot.''

The employees, through their attorneys, filed the bankruptcy petition in an effort to continue their health-insurance benefits for 60 days from May 4, the day they lost their jobs when General Electric Capital Corp. foreclosed on Spartan International's $65 million debt.

Now, U.S. Bankruptcy Court Chief Judge John S. Dalis in Augusta must decide whether to dismiss the bankruptcy petition. If he does, all 6,500 of Spartan's creditors must be notified and given a chance to object.

Meanwhile Friday, Augusta attorneys Louis Saul and James T. Wilson, who also represent the former employees, appealed three of Judge Seymour's orders to the 4th Circuit Court of Appeals in Columbia.

They appealed Judge Seymour's May 22 order appointing a receiver, her June 7 temporary restraining order to halt the bankruptcy proceedings in bankruptcy court in Augusta and her order Monday holding the employees in contempt.

In hearings last week, Judge Dalis ruled against the GE attorneys' motion to dismiss the bankruptcy petition and ordered the appointment of an interim trustee to hear their case.

Judge Dalis did not limit the question to whether money from Spartan's assets should be used to extend the employees' health insurance coverage for 60 days as required by federal labor law when no notice of termination is given. The interim trustee was to consider whether the employees would be paid for the days no notice was given.

During the June 7 hearing, Michael M. Beal, the lawyer for receiver Peter Tourtellot, presented Judge Dalis with Judge Seymour's temporary restraining order directing the employees to take no further action in the case until 5 p.m. Monday.

Judge Dalis recessed the court to research whether he was bound by the order and decided he was not.

At Monday's hearing, Judge Seymour accused Mr. Long of trying to go around her by filing the petition in bankruptcy court in Augusta. She faulted the employees and Mr. Long for not seeking legal relief with her.

Former employee John Brown fell ill after returning from Spartanburg, according to his wife, Ruby, who attributed it to stress.

''It was very disappointing to them,'' she said.

Betty Cushman, who worked at King Mill 29 years, testified at the hearing about losing her health insurance while her husband was in the hospital and being stuck with $50,000 in medical bills. She said Judge Seymour did not appear to hear her.

''Oh Lord, that was a trip and a half, I'll tell you,'' Mrs. Cushman said. ''She just plumb ignored me. That was a trip I won't forget. I've been in court before, but I haven't seen a judge attack a person the way she was doing to Mr. Long.''

Mrs. Renew said she had just received $400 in medical bills that didn't get processed and paid before the insurance was canceled.

''One day I have a little hope, and the next I have all these bills I can't pay,'' she said. ''It's just enough to drive you crazy.''

Spartan International in Spartanburg, S.C., closed six mills May 4 in Georgia, South Carolina and North Carolina when their assets were seized by GE. Overall, 1,200 employees lost their jobs, retirement funds and health insurance benefits.

Reach Sylvia Cooper at (706) 823-3228 or sylviaco@augustachronicle.com.