Propex Exits Bankruptcy Under New Owners

Chattanooga, TN, March 30, 2009 – Propex Inc. said that it will now operate outside of bankruptcy after spending 14 months under Chapter 11 protection.

The Chattanooga-based carpet backing supplier used its time in protection to fix its balance sheet, restructure its debt and create additional cash flow.

Propex’s assets were purchased by a fund, managed by Wayzata Investment Partners, a Minneapolis based private equity firm. The company said it has sufficient liquidity to expand its market leadership.

“We are excited about the opportunity to work with Wayzata going forward to grow the Propex business,” said Propex Executive Vice President and Chief Operating Officer Stan Brant 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.”

Propex Inc. voluntarily filed for bankruptcy protection on Jan. 18, 2008. The company has continued to operate under the supervision of the Bankruptcy Court throughout the Chapter 11 process.