A U.S. Bankruptcy Court for the Eastern District of Tennessee has approved a $60 million credit facility on an interim basis with immediate access to $20 million as requested by needlepunch manufacturer Propex Fabrics. The move provides Propex, which announced it filed for Chapter 11 bankruptcy protection last month, with immediate and sufficient liquidity to operate its business on an ongoing basis.
The company has blamed its current problems on market conditions. “During the past year, our entire industry has been hit hard by the general economic decline led by the deteriorating housing market plus the escalating cost of raw materials,” said company president Joe Dane.
The bankruptcy filing does not impact Propex’s Latin American and European operations. The world's largest needlepunch maker, Propex is a combination of the former BP Amoco Fiber and Fabrics operations and SI Corporation. Last year, the company was the world's ninth largest nonwovens producer with sales estimated at $231 million. Total sales for the company, also a maker of woven products, were $743 million.