Propex seeks court OK to extend employment of three 'vital' executives

By Jennifer Lanning Drey

Portland, Ore., May 20 - Propex Inc. requested court approval of employment agreements that extend by one year the employment of three executives whose pre-bankruptcy contracts are close to expiring, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Tennessee.

Specifically, Propex asked the court to approve the continued employment of Stan Brant as executive vice president and operations officer, Lee McCarter as executive vice president and chief financial officer, and Hugh McClain as executive vice president of sales and marketing.

Continuation of the services provided by the three executives is vital to the Propex's reorganization efforts, especially in light of the May 9 resignation of Propex's executive vice president of worldwide sales and marketing, the company said in the motion.

Under the terms of the new employment agreements, the three employees would receive "slightly higher compensation and severance packages" due to the added responsibilities they will be asked to handle, Propex said.

If approved, Brant and McCarter would receive base compensation of $350,000 under the agreement, and McClain would receive base compensation of $250,000.

All three employees would be eligible for inclusion in Propex's key employee incentive program.

Each of the one-year employee agreements would begin on May 6 and automatically extend by six months unless terminated by either side.

A hearing is scheduled for June 11.

Propex is a Chattanooga, Tenn., producer of primary and secondary carpet backing. It filed for bankruptcy on Jan. 18, and its Chapter 11 case number is 08-10249.

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