Propex $20 million interim DIP approved, final hearing Feb. 13

By Caroline Salls

Pittsburgh, Jan. 23 - Propex, Inc. obtained interim access to $20 million of its $60 million debtor-in-possession credit facility from BNP Paribas, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of Tennessee.

The final DIP hearing is scheduled for Feb. 13.

As previously reported, the DIP facility will mature on the earliest of one year from closing, on the effective date of a plan of reorganization that pays the DIP facility in full or upon an event of default.

If Propex's plan confirmation hearing begins before the DIP maturity date, the DIP facility will be extended an additional 90 days.

Interest will be Libor plus 400 basis points.

Propex will pay a 200 bps closing fee and an unused commitment fee equal to 0.75% of the average unused amount.

Propex, a Chattanooga, Tenn., producer of primary and secondary carpet backing and manufacturer and marketer of polypropylene synthetic fabrics used in other industrial applications, filed for bankruptcy on Jan. 18. Its Chapter 11 case number is 08-10249.

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