DIP Lender One Step Closer To $61M Buyout Of Propex

Law360, New York (March 9, 2009, 12:00 AM EDT) -- A federal bankruptcy judge has approved Propex Inc.’s proposed bidding procedures, paving the way for an affiliate of the company’s debtor-in-possession lender Wayzata Investment Partners LLC to buy the construction materials manufacturer for more than $61 million.

Judge John C. Cook of the U.S. Bankruptcy Court for the Eastern District of Tennessee approved Propex’s motion on Monday, setting aside several objections from private equity firm Black Diamond Capital Management Inc. and BNP Paribas Securities Corp.

The asset sale auction will occur on March 23 if Propex...
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