UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~June~~October 2324, 2005

PROPEX FABRICS INC.

(Exact name of registrant as specified in its charter)

Delaware	333-122829	36-2692811
(State or other jurisdictionof incorporation)	(CommissionFile Number)	(I.R.S. EmployerIdentification No.)
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

260 The Bluffs

Austell, Georgia 30168

(Address of principal executive offices, including zip code)

(770) 941-1711

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement.

OnAt ~~June~~its 20meeting on August 11, 2005, athe ~~fully~~board ~~executed Separation Agreement and Mutual General Release~~ of ~~Claims,~~directors ~~dated as~~ of ~~June~~Propex Fabrics 1,Holdings ~~2005~~Inc. (~~the~~ “~~Agreement~~Holdings”) ~~among Propex~~approved ~~Fabrics~~the ~~Inc.~~2005 Stock Awards Plan (the “~~Company~~Plan”), ~~Propex~~subject ~~Fabrics~~to ~~Holdings~~approval ~~Inc.,~~of the ~~Company’s~~stockholders ~~parent~~of ~~company,~~Holdings. ~~and~~Effective ~~Bradford~~as T.of ~~Mortimer~~October 24, 2005, the ~~Company’s~~Plan ~~former President and Chief Executive Officer,~~ was ~~delivered~~approved toby ~~the~~written ~~Company.~~consent ~~The~~of ~~Agreement~~a ~~provides~~majority ~~for~~of ~~severance~~the ~~and~~stockholders ~~other~~of ~~payments to Mr~~Holdings. ~~Mortimer~~Individual ~~and,~~awards ~~among~~will ~~other~~be ~~things,~~made ~~Mr.~~in ~~Mortimer’s~~the ~~agreement~~future ~~not~~in toaccordance ~~compete~~ with the ~~Company~~Plan ~~for~~using ~~a period of three years. A copy of~~ the ~~Agreement~~forms isevidenced ~~attached~~ as ~~Exhibit~~exhibits 10.12 and 10.3 to this Current Report.

The purpose of the Plan is to provide for granting incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, performance awards, phantom stock awards, or any combination of the foregoing, to selected employees, directors, and consultants of Holdings and its subsidiaries, including the Company. Each award of stock options, stock appreciation rights, restricted stock, performance awards or phantom stock will be evidenced by an agreement between Holdings and the recipient of the award.

The foregoing summary of the material terms of the Plan is qualified in its entirety by reference to the Plan, a copy of which is filed as Exhibit 10.1 to this Current Report.

Item 9.01 Financial Statements and Exhibits.

(c)

Exhibits.

ExhibitNumber		Description
10.1		~~Separation Agreement and Mutual General Release of Claims, dated as of June 1, 2005, among~~ Propex Fabrics ~~Inc., Propex Fabrics~~ Holdings Inc. ~~and~~2005 ~~Bradford~~Stock T.Awards ~~Mortimer~~Plan.
10.2		Form of Nonqualified Stock Option Agreement for Employees.
10.3		Form of Nonqualified Stock Option Agreement for Directors.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PROPEX FABRICS INC.		~~PROPEX FABRICS INC.~~
Dated: June 23, 2005			By:	/s/ Philip D. Barnes
Dated: October 28, 2005	By:	/s/ Philip D. Barnes
				Philip D. Barnes
		Philip D. Barnes Chief Financial Officer
				Chief Financial Officer and Treasurer

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EXHIBIT INDEX

Exhibit Number		Description
ExhibitNumber		Description
10.1		~~Separation Agreement and Mutual General Release of Claims, dated as of June 1, 2005, among~~ Propex Fabrics ~~Inc., Propex Fabrics~~ Holdings Inc. ~~and~~2005 ~~Bradford~~Stock T.Awards ~~Mortimer~~Plan.
10.2		Form of Nonqualified Stock Option Agreement for Employees.
10.3		Form of Nonqualified Stock Option Agreement for Directors.

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