Synthetic fiber manufacturer Propex filed for protection under Chapter 11 of the U.S. Bankruptcy Code in mid-January, a move through which management targets balance-sheet improvement
Source: Propex Inc., Chattanooga, Tenn.
Synthetic fiber manufacturer Propex filed for protection under Chapter 11 of the U.S. Bankruptcy Code in mid-January, a move through which management targets balance-sheet improvement. The company will continue to operate plants and offices in the ordinary course of business while it restructures. Additionally, it has arranged a $60 million credit facility to provide immediate and sufficient liquidity to maintain payroll and employee benefits, customer deliveries, and fulfill obligations to critical suppliers. Anticipated to cover a 12- to 18-month window, the filing impacts Propex’s U.S. operations, but not the company’s Latin American and European units.
“We believe the financial reorganization will allow us to implement a restructuring plan that will lower our debt levels and expand our market leadership in key sectors from a position of financial strength,” says Propex President Joe Dana. “During the past year, our entire industry has been hit hard by the general economic decline led by the deteriorating housing market plus the escalating cost of raw materials. I am pleased we now have a way forward and appreciate the support of our valued customers, suppliers, lenders and employees.”