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SOURCE GSE Environmental, Inc.
Company Continues to Move Forward with "Pre-Arranged" Chapter 11 Reorganization That will Materially Deleverage Its Balance Sheet and Position the Company for Long-Term Growth and Profitability.
HOUSTON, June 12, 2014 /PRNewswire/ -- GSE Environmental, Inc., ("GSE" or the "Company") (OTCQB: GSEH) announced today that the US Bankruptcy Court for the District of Delaware has approved its Disclosure Statement filed in connection with the Company's proposed Joint Plan of Reorganization (the "Plan"). The Court's approval of the Disclosure Statement allows the Company to begin the Plan voting process, leading to a confirmation hearing scheduled for July 25, 2014 and the Company's expected emergence from bankruptcy shortly thereafter. Following the completion of the restructuring process, GSE will continue to operate as a going concern and will reduce its funded indebtedness by more than $172 million.
Charles Sorrentino, GSE's Director and Chief Executive Officer said "GSE is very pleased to have obtained approval of its Disclosure Statement today. We are committed to completing our reorganization as quickly as possible and are targeting emergence from bankruptcy shortly after our Confirmation Hearing. 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."
As previously announced, the Plan is supported by 100% of the Company's first lien lenders who have agreed to convert all outstanding first lien debt to equity, leaving the Company well-positioned for long-term growth as a leading manufacturer and marketer of geosynthetic lining solutions.
The Plan is subject to confirmation by the Bankruptcy Court. This release is not intended as a solicitation for a vote on the Plan.
Parties seeking more information about this announcement may contact GSE Environmental at (281)230-5843 or firstname.lastname@example.org. Documents relating to the Company's filing can be accessed at http://www.gseworld.com.
Kirkland & Ellis LLP is serving as the Company's legal advisor and Moelis & Company is serving as the Company's financial advisor. The first lien lenders are represented by Wachtell, Lipton, Rosen & Katz.
About GSE ENVIRONMENTAL
GSE is a global manufacturer and marketer of geosynthetic lining solutions, products and services used in the containment and management of solids, liquids and gases for organizations engaged in waste management, mining, water, wastewater and aquaculture.
GSE has a long history of manufacturing quality geosynthetic lining systems and developing innovative products. The Company's principal products are polyethylene-based geomembranes, geonets, geocomposites, geosynthetic clay liners, concrete protection liners and vertical barriers. GSE manufactures products primarily to line or cap hazardous and non-hazardous waste landfills, contain materials generated in certain mining processes, and contain water, liquid waste and industrial products in ponds, tanks, reservoirs, sewers and canals. Headquartered in Houston, Texas, USA, GSE maintains sales offices throughout the world and manufacturing facilities in the US, Chile, Germany, Thailand, China and Egypt.
To learn more about GSE Environmental, please visit http://www.gseworld.com.
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statements may include words such as "anticipate," "believe," "expect," "intend," "may" and other words and terms of similar meaning, including in connection with any discussion of the timing or nature of future financial performance or other events. Such forward-looking statements are subject to certain risks
and uncertainties including, but not limited to: the potential adverse effect of the Chapter 11 Cases on the Debtors' business, financial condition or results of operations, including the Debtors' ability to maintain contracts and other business relationships that are critical to the Debtors' business and the actions and decisions of the Debtors' creditors and other third parties with interests in the Chapter 11 Cases; the Debtors' ability to maintain adequate liquidity to fund the Debtors' operations during the Chapter 11 Cases and to fund a plan of reorganization and thereafter, including obtaining sufficient debtor in possession financing and exit financing; whether the holders of the Debtors' liabilities and/or securities receive any value for their interests; the Debtors' ability to obtain
Bankruptcy Court approval with respect to motions in the Chapter 11 Cases prosecuted from time to time; whether a trading market for the Company's common stock will exist on the OTCQB
Marketplace; and other factors disclosed by the Company from time to time in its filings with the Securities and Exchange Commission, including those described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. As a result of these factors, the Company's actual results may differ materially from those indicated or implied by such forward-looking statements. Except as required by law, the Company disclaims any obligation to publicly update such statements.
President and Chief Executive Officer
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