GSI Group, shareholder reach agreement on equity committee appointment

By Caroline Salls

Pittsburgh, Dec. 2 - GSI Group Inc. equityholder Stephen W. Bershad said the company has agreed to support Bershad's motion for the appointment of an equity committee, according to a Bershad news release.

Bershad said he has agreed not to contest the April 30 meeting date set by the company's board of directors in response to his earlier request for a meeting of shareholders to elect directors.

However, if the equity committee is not formed by Dec. 31 or if it is formed but disbanded for any reason, Bershad will have the right to challenge the meeting date.

"We believe an equity committee will give the GSI shareholders a voice in the GSI bankruptcy that they currently don't have, [and it] can be formed more quickly and represent the interests of shareholders sooner than a protracted proxy contest for control of the GSI board," Bershad said in the release.

Bedford, Mass.-based GSI makes precision motion component products, lasers and laser-based manufacturing systems. The company filed for bankruptcy on Nov. 20 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-14109.

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