GSE Environmental Inc. Successfully Completes Chapter 11 Bankruptcy

by San Antonio Attorney

GSE Environmental Inc. announced it had completed Chapter 11 bankruptcy after the confirmation of its reorganization plan. The Delaware bankruptcy court approved its plan last July 25.

In the course of its reorganization, which the GSE said its lenders had agreed upon in May, the company opened a factory in Suzhou, China factory.

Littlejohn & Co. will oversee the activities of GSE. It is a private equity company based in Greenwich, Connecticut that specializes in leveraged recapitalizations and buyouts.

There were two other private equity companies that acquired the manufacturer. The other investors are Strategic Value Partners LLC from California, and Tennenbaum Opportunities Partners V LP from Greenwich.

The companies acquired all of the first lien debt for around $172 million which was converted into equity.

The sale pushed through even though GSE was delisted from the NYSE in March because it could not maintain listing standards.

GSE filed for Chapter 11 bankruptcy protection on May 5, 2014 as part of a reorganization support agreement with its creditors.

The company makes geosynthetic lining for mining, water and waste management sectors. Based on court papers filed, GSE had debts and assets between $100 million and $500 million.

In November last year, the company reported that it lost $35.8 million, which is equivalent to $1.77 per share. In the same month last year, GSE made $5.2 million, or 26 cents per share, in profits.

Chapter 11 is a bankruptcy procedure that involves a restructuring of business debts. It is normally filed by corporations that need time to reorganize. Chapter 11 is a very complex process and the most costly out of all forms of bankruptcy. It should be taken into consideration only after thorough evaluation and all other options have been exhausted.

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