Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
GSE Environmental files for bankruptcy after posting losses
Author: Joel R. Glucksman
Date: May 16, 2014
Key Contacts
Back
GSE Environmental Inc. and its affiliates filed for protection under Chapter 11 of the bankruptcy law May 4, according to Reuters. GSE makes spill containment products, including geosynthetic lining, for the waste management, water and mining sectors. In a court filing, the company listed assets of between $100 million and $500 million, and liabilities within the same range.
GSE has received approximately $45 million in debtor-in-possession financing, the news source reported. It plans to use this funding to repay debt and for general corporate purposes. The Houston-based company was delisted from the New York Stock Exchange two months ago after it failed to maintain listing requirements. The most recent results published for GSE came from its third quarter posting in 2013, which reported a $35.8 million loss, or $1.77 per share. One year earlier, the company reported a $5.2 million profit, or 26 cents per share.
In total, GSE Environmental’s profits declined from $46 million in 2012 to $16 million in 2013, according to The Wall Street Journal. The company cited heightened competition and the lingering effects of the European recession for its financial position. The filing only effects GSE’s North American operations, which it plans to hand off to European lenders. GSE Environmental’s other international affiliates and debt won’t be affected, nor will a $40 million manufacturing facility built last year in Suzhou, China.
Under the restructuring that GSE is proposing, trade suppliers would share $1 million, the Journal explained. Ownership of the company would pass to senior lenders Littlejohn Opportunities Master Fund LP, Tennenbaum Opportunities Partners V, LP and Strategic Value Partners, LLC. GSE is based in Houston, Texas, but also maintains plants in Chile, Germany, Thailand, China and Egypt. A controlling share in the company is owned by CHS Capital LLC and its affiliates, the rest by former directors, officers and investors.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.