Propex Completes Sale of Assets

Chattanooga, TN, April 29, 2009--Carpet backing supplier Propex Inc. completed the sale of its assets to Propex Holding LLC, an entity owned by a fund managed by Wayzata Investment Partners, a Minneapolis-based private equity firm, according to the Dalton Daily Citizen.

Bankruptcy Judge John C. Cook in Chattanooga approved Wayzata’s bid for Propex’s assets on March 30.

Propex Holding LLC will continue to operate under the trade name Propex.

“I would like to thank Wayzata for helping us become a stronger company with new financing in place to grow our business and strengthen our trusted brands,” Propex’s chief executive officer Stan Brant said in a statement.

Propex has eliminated more than $380 million of debt and long-term liabilities with the deal.

Propex Inc. voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Jan. 18, 2008.