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

Report: Brands are falling short on packaging sustainability

January 29, 2015 5:19 pm ET

Packaging in general, and plastic packaging in particular, has a long way to go in terms of recycling, according to a pair of environmental groups.    More

Image

Lund adds to aftermarket auto products portfolio with buy of Bushwacker

January 29, 2015 2:49 pm ET

Lund International Inc. has expanded its portfolio of plastic aftermarket vehicle accessories by acquiring Bushwacker Inc.    More

Image

Profit dips at Bemis Co. Inc.

January 29, 2015 2:04 pm ET

Profit dipped for Bemis Co. Inc. for all of 2014, but were up during the fourth quarter in what the company's leader called a “pivotal year....    More

Image

Falcon Plastics expands in South Dakota

January 29, 2015 11:45 am ET

Falcon Plastics Inc. is putting the final touches on a 60,000 square foot addition that will nearly double the size of its Brookings, S.D.,...    More

Image

Plastics enter 2015 on a high note

January 29, 2015 10:10 am ET

Now that the preliminary round of December data is officially in the books, I can state unequivocally that 2014 was an outstanding year for the U.S. p...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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 Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

More Events