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~~to

~~Date of Report~~Section 13 ~~(Date~~or ~~of Earliest Event Reported~~15(d): ~~December 1, 2004~~of

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): December 27, 2004

APPLIED EXTRUSION TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-19188	51-0295865
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)
15 Read’s Way New Castle, Delaware 19720
(Address of principal executive offices, including zip code)
(302) 326-5500
(Registrant’s telephone number, including area code)

15 Read’s Way

New Castle, Delaware 19720

(Address of principal executive offices, including zip code)

(302) 326-5500

(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 (see General Instruction A.2. below):

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

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

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

o 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

On December 2, 2004, upon obtaining approval from the United States Bankruptcy Court for the District of Delaware, Applied Extrusion Technologies, Inc. (the “Company”), a chapter 11 debtor and debtor in possession, entered as borrower into a senior secured, super-priority debtor in possession loan agreement (the “DIP Credit Agreement”) with GE Commercial Finance, as agent, for a credit facility of up to $125,000,000 (the “DIP Credit Facility”). The DIP Credit Facility consists of a Revolving Credit Facility of up to $55,000,000, a Term Loan of up to $50,000,000 and a Last Out Term Loan of up to $20,000,000. A copy of the DIP Credit Agreement dated as of December 2, 2004 is attached hereto as Exhibit 10.1 and such exhibit is incorporated by reference herein.

Item 8.01. OTHER EVENTS

On December 1 27, 2004, Applied Extrusion Technologies, Inc. (the “Company”) ~~filed~~issued a ~~voluntary,~~press ~~prepackaged~~release ~~plan of~~announcing ~~reorganization~~preliminary ~~under~~fiscal ~~chapter~~2004 11results, of the ~~U.S.~~syndication ~~Bankruptcy~~of ~~Code~~ additional debtor-in-possession financing, and that the U.S. Bankruptcy Court for the District of Delaware ~~pursuant~~had togranted ~~its previously announced recapitalization plan. Trade creditors will not be impaired under this proposed plan, and it is expected that~~ the ~~proceedings will not impact the~~ Company’s ~~employees~~authority ~~or customers. The plan remains subject~~ to ~~approval~~use by the ~~bankruptcy~~ ~~court,~~full ~~but it is expected the Company will emerge from chapter 11 early in the first calendar quarter of 2005. 95% of the dollar~~ amount ~~of “large”~~ ~~beneficial holders~~ of ~~$500,000~~this ~~or more in principal amount of the Company’s senior notes, counting only those claims that actually voted, voted in favor of the plan~~facility. ~~Although “small” noteholders voted to reject the plan, the Company believes the plan is nevertheless confirmable by the bankruptcy court.~~

OnAdditionally, ~~December~~the 1Company advised that it would not meet the extended filing deadline of December 30, 2004, ~~the~~provided under ~~Company~~its ~~also~~Notification ~~issued~~of Late Filing – Form 12b-25, as reported on December 14, a2004. ~~press~~The ~~release~~Company ~~announcing~~reported that itthe ~~had~~delay ~~filed~~in ~~such~~filing ~~plan~~its ofannual ~~reorganization. A~~report ~~copy~~on ofForm 10-K due to the ~~press~~timing ~~release~~and ~~dated~~associated ~~December~~critical 1demands of its recent prepackaged Chapter 11 filing, including the evaluation of the financial ~~2004~~reporting isimplications ~~attached~~of asthe ~~Exhibit~~Chapter 9911 filing.1 The ~~hereto~~Company anticipates that it will complete and ~~such~~file ~~exhibit~~its isannual ~~incorporated~~report ~~herein~~ by ~~reference~~January 31, 2005.

A copy of the press release dated December 27, 2004 is attached as Exhibit 99.1 hereto and such exhibit is incorporated herein by reference.

SIGNATURES

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

	APPLIED EXTRUSION TECHNOLOGIES, INC.
	By:
		Name:	Brian P. Crescenzo
		Title:	Vice President, Secretary and Chief Financial Officer
Date: December 6, 2004
Date: December 29, 2004

EXHIBIT INDEX

Exhibit 10.1	DIP Credit Agreement dated as of December 2, 2004
Exhibit 99.1	Press Release dated December 1, 2004

Exhibit 99.1 Press Release dated December 27, 2004

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