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 / Post-Bankruptcy Stocks

GSE Environmental Plan Filed, Disclosure Statement Approved

GSE Environmental filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan and related Disclosure Statement. According to the Disclosure Statement, “Specifically, the Plan contemplates a substantial reduction in the Debtors’ funded debt obligations by satisfying the approximately $173.4 million of principal obligations under the First Lien Credit Facility with New Equity. The Plan also calls for significant recoveries for general unsecured creditors. In particular and as set forth in more detail in the Plan, the Plan: (a) provides for payment in full of claims of all of the Debtors’ trade creditors that agree (i) to return to trade terms no less advantageous to the Debtors than those in place twelve months before the Petition Date and (ii) to maintain those trade terms for twelve months after the Effective Date (provided that the Debtors meet their obligations with respect to any such terms); and (b) also provides for an amount of Cash for other General Unsecured Claims, which the Debtors believe should be sufficient to either pay in full or pay a substantial percentage distribution on such claims, provided that no unanticipated Claims exist and are allowed and further provided that all trade creditors make the election on the voting ballot or execute a Qualified Vendor Support Agreement (hereinafter defined) in order to be included in Class 4 Qualified Unsecured Trade Claims. Under the Plan, the Debtors would fund distributions with Cash on hand, as well as the proceeds of their Exit Facility.” The Court subsequently approved the Disclosure Statement. Charles Sorrentino, GSE Environmental’s chief executive officer, comments “Our financial restructuring is critical in positioning us for the future by providing a significantly improved capital structure. I am confident that with the continued support of our dedicated employees, suppliers, and customers, GSE will emerge from this reorganization as a stronger, more competitive company.”

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