An all-night auction produced the $82 million sale of a bankrupt Chattanooga carpet-industry supplier to a Minnesota investment firm, according to court filings. 
Wayzata Investment Partners LLC will pay $82 million to acquire the assets of Propex Inc. Chattanooga-based Propex filed for Chapter 11 in January 2008. Propex, formerly known as Amoco Fabrics and Fibers, manufactures polypropylene fabrics used in carpet backings. Propex sells its products to the large number of carpet makers based in nearby Dalton, Ga.
Wayzata, headquartered near Minneapolis, outbid two other parties, Black Diamond Capital Management Inc. and Renco Group Inc. Wayzata’s purchase is subject to the approval of U.S. Bankruptcy Court Judge John C. Cook in the Eastern District of Tennessee.
Propex relied on two law firms for counsel on the sale, King & Spalding and Miller & Martin. King & Spalding partners Henry Kaim and Mark Wege in Houston, and partner Sarah Borders and counsel John Isbell in Atlanta worked on the matter. For Miller & Martin, partners Shelley Rucker and Nick Whittenburg, both of Chattanooga, were counsel to Propex.
Kirkland & Ellis partner David Agay in Chicago and Husch Blackwell Sanders partner Jeff Norwood in Chattanooga advised Wayzata.