Tags: bankruptcy | GSE | takeover | offering

GSE Environmental Files Bankruptcy for Noteholder Takeover

Monday, 05 May 2014 10:56 AM

GSE Environmental Inc., a maker of manholes and landfill liners that has been seeking a buyer for months, filed for bankruptcy protection with a plan to hand control to holders of $173.4 million in secured notes.

Under an agreement negotiated before yesterday’s Chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Delaware, trade claims might be paid in full and general unsecured creditors would share in a recovery pool.

“We are grateful for the support of our key financial stakeholders for our business plan,” GSE Chief Executive Officer Chuck Sorrentino said today in a statement.

The Houston-based company worked with investment bank Moelis & Co. for months to find a buyer and had until April 30 to complete a sale acceptable to lenders, according to a March 14 statement on its website. CHS Capital LLC, a Chicago-based private-equity firm, acquired GSE in 2004, according to data compiled by Bloomberg.

GSE listed assets of $269.5 million and debt of $261.9 million as of March 31. Secured debt of about $193.1 million includes the $173.4 million in notes and $18 million due under a credit facility that GSE plans to pay off with proceeds from a proposed $45 million bankruptcy financing.

New Owners

Noteholders who would take ownership include Littlejohn Opportunities Master Fund LP, Tennenbaum Opportunities Partners V LP and Strategic Value Partners LLC.

GSE’s liners are used in waste management and the mining industry. The company, with sales of about $419 million last year, has 625 employees worldwide, about 240 of them full-time, according to court papers.

Formosa Plastic Corp. USA of Livingston, New Jersey, was identified as one of GSE’s largest unsecured creditors in court papers, owed $4.13 million in trade debt.

In 2011, GSE had planned an initial public offering to help pay for a $40 million loan, according to a Moody’s Investors Service report at the time.

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GSE Environmental Inc., a maker of manholes and landfill liners that has been seeking a buyer for months, filed for bankruptcy protection with a plan to hand control to holders of $173.4 million in secured notes.
bankruptcy, GSE, takeover, offering
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2014-56-05
Monday, 05 May 2014 10:56 AM
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