Wayzata Investment Partners has completed its $61.5 million acquisition of bankrupt Propex. The company manufactures polypropylene fabrics and fibers used for carpet backing and other industrial fabrics. In January the company filed for chapter 11 bankruptcy after defaulting on $230 million of bank loans stemming from a $355 LBO led by The Sterling Group and Genstar Capital. Wayzata provided Propex $65 million of DIP financing and helped it restructure its balance sheet, eliminating $380 million of debt.
Since the beginning of the year, private equity investors have announced or completed investments in seventeen bankrupt companies, according to the PitchBook Platform. There is a broad spread of PE firms involved in the deals, from liquidators like Gordon Brothers Group and Hilco Consumer Capital, to distressed investors like MatlinPatterson Global and KPS Capital Partners, to regular investors like Weston Presidio and Irving Place Capital. The biggest deal proposed so far is the Apollo Investment Management led group looking to acquire Charter Communications for $3.4 billion.