Propex Inc. announced in April that it obtained, by Court Order, approval for the sale of substantially all of its assets as a going concern to an affiliate of Wayzata (Minn.) Investment Partners. Propex expected the sale to be closed soon.
The Chattanooga-based global supplier of polypropylene fabrics and fibers for geosynthetics, concrete, furnishings, and industrial markets used its time in Chapter 11 protection to enable a sale to a new entity with a sound financial footing going forward.
Propex’s assets are purchased by a fund managed by Wayzata Investment Partners, a Minneapolis-based private equity firm. Under the new entity, the Propex assets will provid a foundation and sufficient liquidity to aggressively expand its market leadership.
“We are excited about the opportunity to work with Wayzata going forward to grow the Propex business,” said Stan Brant, Propex’s president and CEO.
“We have made great strides in our restructuring to reposition this company as the premier supplier of polypropylene fabrics and fibers. Even in the current economic climate, our new capital structure will make Propex a stronger company that is focused on growth in our current markets as well as expanding into new ones,” he added.
Propex Inc. voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Jan. 18, 2008. The company continued to operate under the supervision of the Bankruptcy Court throughout the Chapter 11 process.