BIDDEFORD – Biddeford Textile Corp. filed for Chapter 11 bankruptcy protection Wednesday as part of a restructuring plan that would, if approved, pay 350 employees approximately $300,000 in back wages.

The plan calls for the company to sell $313,000 worth of stockpiled electric blanket shells to Sunbeam Corp. and work to reach a new contract with the company, which itself filed for Chapter 11 protection last month.

“If Sunbeam had not agreed to buy the blankets, we would not be filing the Chapter 11 case, so we are grateful to them for their understanding of the situation,” said George Marcus, the mill’s attorney.

If Sunbeam places new orders for electric blanket shells, up to 150 workers could be recalled within the next six months, Marcus said.

Lawyers representing the mill and its new management formulated the voluntary bankruptcy plan.

“This is a great mill with modern technology and it deserves saving. These workers also deserve to be treated better than they have been in recent weeks,” said Michael Liberty, who was a key investor in Biddeford Textile.

In 1997, Liberty and his team of investors helped rescue the mill after Sunbeam announced it would shut the mill down. An employee ownership group was formed and investors helped reopen the mill after securing a five-year contract with Sunbeam through Liberty.

A major element of the plan for reviving the mill involves repairing relations with Florida-based Sunbeam.

Liberty was able to reopen negotiations with Sunbeam in recent weeks, which led to the company’s agreement to buy existing inventory at the mill and its willingness to consider a new contract, Marcus said.