Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

GSE Environmental Chapter 11 Petition, Plan Filed

GSE Environmental and three affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-11126. The Company, which provides engineered geosynthetic containment solutions for environmental protection and confinement applications, is represented by Laura Davis Jones of Pachulski Stang Ziehl & Jones. According to documents filed with the Court, “As described above, the ongoing European recession, the downturn in the global mining industry, increased competition domestically and internationally, and escalated operational expenditures and employee spending under prior management have put a strain on the Company’s financial condition. Additionally, at the same time that revenue declined in recent years, the Company made significant investments in growth capital expenditures. While the Company expects that these investments will play an important role in their future success, this spending unfortunately coincided with an unanticipated downturn in the Company’s financial performance.” Concurrent with its petition, the Company also filed a Prepackaged Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “Because the Debtors’ Plan is based on a consensual deal with the Debtors’ key stakeholders and provides more value to creditors than would have been possible under a sale of the Debtors’ businesses, including potential full recoveries for holders of trade claims that otherwise would not have been available, the Debtors believe the Plan reflects the best available alternative for all of their stakeholders. The Debtors believe that the balance-sheet restructuring contemplated under the RSA will enhance the Debtors’ capital position and allow the Debtors to continue to focus on providing key environmental-barrier solutions to the market.”

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