Judge Drops Creditors' Call For More Propex DIP Docs

Law360, New York (August 20, 2008, 12:00 AM EDT) -- A bankruptcy judge signed off on an amendment to Propex Inc.'s post-bankruptcy financing at a hearing Wednesday, denying the company's unsecured creditors' demand to see more documentation of the company's debtor-in-possession agreement before the judge approved the amendment.

The creditors asked Judge John C. Cook of U.S. Bankruptcy Court for the Eastern District of Tennessee to grant further disclosure of documents relating to the foreign stock pledge Propex made to its DIP lender, the French bank PNB Paribas Securities Corp.

But at the hearing on Wednesday,...
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