Business News

Hilex Poly Receives Court Approval Of Its First Day Motions

Monday 12. May 2008 - Orders Will Allow Company to Provide Pay and Benefits to Employees Vendors and Suppliers Will Be Paid In Full DIP Financing Received Interim Approved

Hilex Poly Co., LLC, (“Hilex” or “the Company”), the world’s largest plastic bag company, announced that on May 7th, it received approval from the U.S. Bankruptcy Court for the District of Delaware of its first day motions, which were submitted as part of its voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The first-day orders granted by the Court ensured that the filing will not impact day-to-day operations for employees, customers, suppliers and general business operations. Employee pay and benefits are fully protected, all current and future obligations to its customers are fulfilled, and that suppliers will be paid in full.

In addition, Hilex received interim approval to access its Debtor-in-Possession (DIP) financing. This financing provides additional reassurance to employees, customers and suppliers that Hilex can meet all of its ongoing commitments and demonstrates our lenders’ belief in Hilex’s business model and their long-term faith in the Company.

Hilex has also received the authority to pay all pre-petition and post petition invoices in the normal course of business. This ensures all suppliers are paid in full as invoices are due.

“We are extremely pleased by the approval of the first day motions,” said David Pastrich, president and chief executive officer of Hilex. “This allows us to continue to conduct our business with the highest integrity and better serve our customers, as we strengthen our market leadership position in the plastic bag industry.”

Hilex filed to reorganize under Chapter 11 on May 5 in the United States Bankruptcy Court for the District of Delaware. The case number for this filing is 08-10890.

About Hilex Poly Co., LLC (www.hilexpoly.com)

Hilex Poly Co., LLC is an industry leading manufacturer of plastic bag and film products. Focusing primarily on high density polyethylene (HDPE) film products and related services, our products range from bagging systems to agricultural films.

As an industry leader, we have introduced many new products and features into the marketplace. Our patented QuikMate EZ(R) open feature continues to be the standard for self-opening plastic bags. Other key innovations and patents include specialized bag features and dispensing hardware. All of our products and services are focused on practical solutions in our target markets.