CHATTANOOGA, Tennessee, March 30, 2009 â€“ Propex Inc. announced today that it will now operate outside of bankruptcy after spending 14 months under Chapter 11 protection.
The Chattanooga-based premier global supplier of polypropylene fabrics and fibers for the geosynthetic, concrete, furnishings and industrial markets used its time in protection to right size its balance sheet, restructure its debt and create additional cash flow. Propexâ€™s assets were purchased by a fund managed by Wayzata Investment Partners, a Minneapolis based private equity firm. Under the new ownership, Propex emerges from bankruptcy with a strong foundation and sufficient liquidity to aggressively expand its market leadership.
â€œWe are excited about the opportunity to work with Wayzata going forward to grow the Propex business,â€ Propexâ€™s Executive Vice President and Chief Operating Officer Stan Brant said in a statement.
“We have made great strides in our restructuring to reposition this company as the premiere supplier of polypropylene fabrics and fibers. Even in the current economic climate, our new capital structure makes Propex a stronger company that is focused on growth in our current markets as well as expanding into new ones,â€ he added. Brant credits the loyalty of Propexâ€™s customers and business partners and the commitment of its employees for the rapid and successful restructuring. Propex Inc. voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code on January 18, 2008. The company has continued to operate under the supervision of the Bankruptcy Court throughout the Chapter 11 process.