Propex Files Ch. 11 Plan and Disclosure Statement

Law360, New York (October 30, 2008, 12:00 AM EDT) -- Propex Inc. has filed a joint plan of reorganization and disclosure statement that the textile company says provides significant returns to the hundreds of creditors whose claims helped push it to seek Chapter 11 bankruptcy protection in January.

Filed Oct. 29 in the U.S. Bankruptcy Court for the Eastern District of Tennessee, the plan and associated disclosure statement outline Propex's plans to reorganize by issuing new common stock that it hopes will help pay off the company's more than $200 million in debt, of which about...
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