Bankruptcy court confirms GSE reorganization plan

By Michael Lauzon
Correspondent

Published: July 29, 2014 4:01 pm ET
Updated: July 30, 2014 9:17 am ET

Image By: New York Stock Exchange GSE Environmental Inc. during a Feb. 2012 visit to the New York Stock Exchange when it rang the closing bell.

Related to this story

Topics Film & Sheet, United States, Geomembranes/landfill

The U.S. Bankruptcy Court in Wilmington, Del., has confirmed the reorganization plan for geomembranes maker GSE Environmental Inc.

Private equity firms Littlejohn & Co. and Strategic Value Partners will become the new GSE owners when they convert their first lien debt to equity after GSE’s original stock is canceled. GSE said July 28 that it expects the plan “to become effective shortly, once all closing conditions have been met.”

GSE’s first lien of debt is worth about $172 million. Tennenbaum Opportunities Partners V LP also was originally slated to be part owner of reorganized GSE, but it has sold its position.

GSE first announced details of the plan on May 5, a day after it voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code.

“We expect to emerge as an even more competitive and well capitalized company, with excellent liquidity and greater financial flexibility to accelerate our growth and continue to meet the evolving needs of our customers,” stated GSE CEO Chuck Sorrentino in a news release.

The plan eliminates a large amount of debt and provides capital for GSE’s future needs. GSE suppliers will be paid in full if they agree to return to normal trade credit terms. Other unsecured creditors will be compensated but GSE did not spell out terms.

GSE’s products include liners and geonets sold to industrial and infrastructure markets. Its U.S. plants are in Houston, its headquarters, and in Spearfish, S.D., and Kingstree, S.C.

GSE’s foreign subsidiaries — in China, Chile, Germany, Egypt and Thailand — are not part of the reorganization but they too will be owned by Littlejohn and Strategic Value Partners.

 


Comments

Bankruptcy court confirms GSE reorganization plan

By Michael Lauzon
Correspondent

Published: July 29, 2014 4:01 pm ET
Updated: July 30, 2014 9:17 am ET

Post Your Comments


Back to story


More stories

Image

Residents ask court to close pipe maker

November 21, 2014 3:22 pm ET

Residents living by National Pipe & Plastics Inc.'s new factory in an industrial zone of Endicott, N.Y., say the facility has “devastated the...    More

Image

Need for skilled workers is unchanged, but method of finding them has

November 21, 2014 6:00 am ET

It's in the news nearly every day now: “How can manufacturing solve the skilled worker shortage? We need to get young people interested in...    More

Image

Thomson Plastics opens N.C. plant

November 20, 2014 3:12 pm ET

Custom injection molder Thomson Plastics Inc. has opened a new manufacturing facility in Lexington, N.C.    More

Image

PET film maker Evertis expanding production in Mexico, Brazil, Portugal

November 20, 2014 2:52 pm ET

Evertis, a PET film maker, is expanding production at plants in Mexico, Brazil and Portugal, the company said.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events