GSE Environmental granted court approval of plan disclosure statement

By Kali Hays

New York, June 13 – GSE Environmental, Inc. obtained court approval of the disclosure statement related to its amended Chapter 11 plan of reorganization, according to a Friday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company intends to implement a restructuring agreement reached with its lenders.

Under the agreement, GSE said it will restructure its balance sheet by converting all of its outstanding first-lien debt to equity, leaving the company well-positioned for long-term growth and profitability.

GSE said it entered into a restructuring support agreement with lenders who hold 100% of its first-lien debt. In this agreement, the lenders committed to support a restructuring transaction that will eliminate more than $172 million of debt from GSE's balance sheet.

Treatment of creditors under the plan will include the following:

• Administrative expense claims, including DIP financing claims, and pre-bankruptcy priority claims will be paid in full;

• Holders of first-lien credit agreement claims will receive their share of 100% of the equity of reorganized GSE Holding, Inc.;

• Other secured claims will be rendered unimpaired;

• Holders of trade vendor claims that agree in writing to return to market trade terms for at least a year following the Chapter 11 cases will be paid in full to the extent not previously satisfied;

• Other holders of general unsecured claims will receive their share of $1 million in cash;

• Existing equity interests in GSE Holding will be canceled without any distribution to holders; and

• Super-priority credit facility claims will be refunded through a debtor-in-possession loan.

Upon filing, the company said in court documents that it plans to emerge from bankruptcy within three to four months.

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

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