Court Approves Propex Loan from Investment Group

Chattanooga, TN, Jan. 29, 2009--Propex Inc. said that the U.S. Bankruptcy Court in Chattanooga has approved, on an interim basis, a $65 million debtor in possession loan with Wayzata Investment Partners.

The final hearing is scheduled for Feb. 9. This new lending facility envisions a sale of substantially all of Propex's assets by March 24.

Propex said at the court hearings that Wayzata is interested in buying substantially all of the company's assets in a bidding process.

The buyer would continue Propex operations and assume its liabilities.

Propex is the largest independent producer of primary and secondary carpet backing. Formerly known as Amoco, then BP and now Propex, the company supplies carpet foundation fabrics to most of the carpet manufacturers who don't produce their own backings.

Wayzata, based in Wayzata, Minn., has more than $5 billion in assets under its management.