 |
January 29, 2008 |
|
|
|
 |
PROPEX INC: Gets Interim OK to Use BNP Paribas' Cash Collateral The Hon. John C. Cook of the U.S. Bankruptcy Court for the Eastern District of Tennessee authorizes Propex Inc. and its debtor-affiliates, on an interim basis, to use BNP Paribas Securities Corp.'s cash collateral, pursuant to and limited by the provisions of a DIP budget. A copy of the budget has not been filed with the Court. The Court grants BNP Paribas a valid perfected replacement lien on all of the Collateral subordinate only to: (i) the Permitted Prepetition Liens; (ii) the DIP Lenders' security interests and liens; and (iii) the Carve-Out. As reported in the Troubled Company Reporter on Jan. 23, 2008, Henry J. Kaim, Esq., at King & Spalding, LLP, in Houston, Texas, proposed lead counsel of the Debtors, relates that the Debtors require the immediate use of the Cash Collateral and financing for, among other things, the purchase of their inventory, maintenance of their facilities, and other working capital needs. Prior to Jan. 18, 2008, the working capital needs of the Debtors were met primarily by a US$360 million senior credit facility. Pursuant to the terms and conditions of a prepetition credit agreement and related documents, a syndicate of financial institutions arranged by BNP Paribas Securities Corp., which serves as administrative agent for the lender, agreed to provide the senior credit facility, comprised of a US$260 million term loan, a US$50 million revolving facility and a US$50 million bridge loan facility. The Prepetition Credit Facility was secured by perfected, valid, binding and non-avoidable first priority security interests and liens upon substantially all of the assets of the Debtors. The Debtors' right to use Cash Collateral will automatically terminate on the date that is the earlier of 10 days after an Event of Default under the DIP Facility or the maturity date of the DIP Facility, the Court clarifies. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/ -- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008, (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000) |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Europe. To receive the Full TCR-EUR please CLICK HERE.
