CHATTANOOGA, Tenn., Jan. 29 /PRNewswire/ — Propex Inc. announced today that the United States Bankruptcy Court in Chattanooga overseeing Propex’s Chapter 11 cases today approved, on an interim basis, a $65 million DIP loan facility with Wayzata Investment Partners. The final hearing is scheduled for February 9, 2009, at 1:30 p.m. EST. This new lending facility envisions a sale of substantially all of Propex’s assets as going concerns on or before March 24, 2009. Propex stated at the court hearings that Wayzata is interested as a bidder in an auction process for substantially all of the companies’ assets, with the buyer continuing the operations of Propex after the sale and assuming certain liabilities, such as the employees of the ongoing operations and satisfying ongoing obligations to vendors and employees. The Chapter 11 cases are pending in the Bankruptcy Court for the Eastern District of Tennessee, Southern Division, before Chief Bankruptcy Judge John Cook, jointly administered under Case No. 08-10249.
SOURCE Propex Inc.