One of the leading global suppliers of polypropylene fabrics and fibers for the concrete and other industrial markets announced recently that it will now operate outside of bankruptcy after spending 14 months under Chapter 11 protection
Source: Propex Inc., Chattanooga, Tenn.
One of the leading global suppliers of polypropylene fabrics and fibers for the concrete and other industrial markets announced recently that it will now operate outside of bankruptcy after spending 14 months under Chapter 11 protection. In mid-January 2008, the company voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code and has continued to operate under the supervision of the Bankruptcy Court throughout the process.
Propex has used its time in protection to right size its balance sheet, restructure its debt and create additional cash flow. Its 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. “We have made great strides in our restructuring to reposition this company,” said Propex’s Executive Vice President and Chief Operating Officer Stan Brant said in a statement. “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.”