An auction for the assets of underwear maker Fruit of the Loom has drawn no bidders, clearing the way for an $835 million buyout offer by billionaire Warren Buffett's Berkshire Hathaway group.

Fruit of the Loom filed for bankruptcy in Delaware in 1999. Bankruptcy Judge Peter Walsh will consider the Berkshire proposal on January 2nd. If no late offer comes in, a reorganisation incorporating Berkshire's plans for the company will be submitted to a vote of creditors. If they approve, Judge Walsh will have to confirm it.