GSE obtains interim approval for DIP loan, stock transfer procedures

By Caroline Salls

Pittsburgh, May 6 - GSE Environmental, Inc. obtained interim access to $35 million of a proposed $45 million in debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the financing is expected to fund its Chapter 11 process and will provide adequate funding to meet customer, vendor, employee and other stakeholder commitments for the duration of the restructuring process.

The financing will be provided by funds affiliated with Littlejohn & Co., LLC, Tennenbaum Capital, Partners, LLC and Strategic Value Partners, LLC. Cantor Fitzgerald Securities is the DIP loan agent.

The DIP facility will mature on the earlier of six months from the bankruptcy filing date and the effective date of the company's plan of reorganization.

Interest will be Libor plus 950 basis points with a 1.5% Libor floor.

In addition, GSE received interim court approval of the notification and hearing procedures for transfers of its equity securities.

Under the procedures, substantial stockholders must provide notification of their status. Notice must also be given before any transfer is completed that would result in substantial equityholder status.

GSE would then have 30 days to object to any proposed transfer. If the company does object, the transfer cannot proceed without a further court order.

The order defines substantial equityholders as holders of at least 916,304, or 4½%, of the company's stock.

The final hearing on both the DIP loan and equity transfer motions is scheduled for June 2.

GSE, a Houston-based plastics company, filed bankruptcy on May 4. The Chapter 11 case number is 14-11126.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.