Propex Files Motion To Sell Itself To Investors

Chattanooga, TN, Feb. 18, 2009--Propex Inc. said it filed a motion, with the U.S. Bankruptcy Court in Chattanooga to sell its assets to an affiliate of Wayzata Investment Partners by March 24.

The buyer would assume obligations to customers and vendors and the continued employment of Propex employees.

The court had already approved a $65 million a debtor in possession loan with Wayzata. The Chapter 11 cases are pending in the Bankruptcy Court for the Eastern District of Tennessee, Southern Division, before Chief Bankruptcy Judge John Cook.

Propex produces geo-synthetic, concrete, furnishing and industrial fabrics and fibers.