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Propex, with Alto plant, files for bankruptcy

Company says operations will continue

POSTED: January 29, 2008 5:03 a.m.

Propex Inc., which operates a manufacturing plan in Alto, announced Friday that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code.

The company said will continue to operate its facilities and offices in the ordinary course of business while it restructures. Additionally, Propex has arranged a $60 million source of credit facility for which it will be seeking court approval. The company said the financing will allow it to operate its business on an ongoing basis.

The Alto facility, located in Banks County, employs 155 workers and makes three products, woven fabrics, recreational filtration, and an erosion control product called Pyramat.

Propex requested and expects that the court will approve the company’s new financing to continue all operations in the normal course, including maintaining payroll and employee benefits, deliveries to customers and fulfillment of obligations to critical suppliers.

“Today’s steps are part of an important process to strengthen Propex,” said Joe Dana, president of Propex, in a statement released by the company. “We believe the financial reorganization will allow us to implement a restructuring plan that will lower our debt levels and expand our market leadership in key sectors from a position of financial strength.”

In addition to Alto, the company operates plants in Bainbridge, Hazelhurst, Nashville and Ringgold, and Chattanooga, Tenn.



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