Creditors Oppose Propex's $65M DIP Cash Request

Law360, New York (January 22, 2009, 12:00 AM EST) -- Several creditors — including major secured lenders, a committee of unsecured creditors and the federal Pension Benefit Guaranty Corp. — have objected to a $65 million debtor-in-possession financing request by bankrupt materials company Propex Inc., contending that the request is being considered too hastily and that it usurps proper bankruptcy procedure.

At least four objections to the financing request were filed Wednesday on behalf of creditors in the U.S. Bankruptcy Court for the Eastern District of Tennessee.

Along with the PBGC and the official committee of...
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