Geosynthetics film maker GSE Environmental Inc. has emerged from Chapter 11 bankruptcy protection, the company announced Aug. 11.
“Today marks a fresh start for GSE,” stated GSE CEO Chuck Sorrentino in a news release. “Our new capital structure and substantially stronger balance sheet helps position our company for long-term growth and profitability.”
GSE moves forward with a reduced debt load, greater liquidity and the support of its new owners, private equity firms Littlejohn & Co. and Strategic Value Partners. GSE's board of directors will be controlled by Littlejohn.
GSE's restructuring plan was approved by the U.S. Bankruptcy Court in Wilmington, Del., on July 25 and became effective Aug. 11.
The company did not just mark time during the restructuring process. It opened a new plant in China and launched new products.
GSE suppliers will be paid in full if they agree to return to normal trade credit terms. Other unsecured creditors also will be compensated.
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 legal advisor was Kirkland & Ellis LLP. Moelis & Co. was its investment banker and financial advisor and Alvarez & Marsal North America LLC provided advisors. Littlejohn and SVP were represented by Wachtell, Lipton, Rosen & Katz.