Gloucester Engineering Co. received bankruptcy court approval for the disclosure statement in its reorganization plan. The statement describes the proposed reorganization plan and contains information regarding the debtor and its business. Ballots have been sent to creditors and a confirmation hearing is scheduled for Dec. 20. The proposed reorganization is sponsored by Blue Wolf Capital Partners LLC’s Blue Wolf Capital Fund II. It also has the support of the creditors’ committee. Gloucester Engineering is a Massachusetts-based provider of equipment for the plastics extrusion and converting industry.
Gloucester Engineering Co. (GEC), one of the leading providers of equipment for the plastics extrusion and converting industry, today announced that it has won approval of its Disclosure Statement in support of its Plan of Reorganization from the Bankruptcy Court in the District of Massachusetts. The Disclosure Statement describes the proposed Plan of Reorganization and contains information regarding the debtor and its business. Its approval by the Court is an important milestone in the company’s path toward exiting bankruptcy and allows the creditors to vote upon the Plan. Ballots were sent to the creditors on November 17 and a Confirmation Hearing is scheduled for December 20, 2010.
“We are very pleased with the Court’s decision, which paves the way for the company to emerge from bankruptcy by the end of the year.”
The company’s Plan of Reorganization is being sponsored by an affiliate of Blue Wolf Capital Fund II (“Blue Wolf”) and has the support of the Creditors’ Committee.
“This is an extremely positive development for our company, and we encourage our creditors to vote in favor of the plan as well, as we believe it represents the highest possible recovery for them. Our customers have already shown confidence in GEC by placing new orders throughout our rebuilding efforts, and this outcome should give them continued assurance as we move forward,” said Carl Johnson, President of GEC.
Michael Ranson, Partner at Blue Wolf Capital, said, “We are very pleased with the Court’s decision, which paves the way for the company to emerge from bankruptcy by the end of the year.” He added, “GEC’s restructuring is on track and is already yielding positive results as the company has steadily improved its productivity, accepted new orders, and devised a clear strategy for improving its balance sheet and operations. We are grateful to GEC’s many customers and suppliers for their continued support as the company completes its turnaround and regains its position as a leader in this growing industry.”
GEC’s subsidiary, Gloucester Engineering Co. Europe, emerged from bankruptcy on November 12, 2010.
About Gloucester Engineering Co. Inc.
Since its inception in 1961, Gloucester Engineering Company has been a global leader in advancing quality and production limits in the plastics extrusion and converting market. GEC offers a range of innovative system and component solutions, for both new lines and retrofits, that provide customers a competitive edge in applications that include bag making, foam and sheet extrusion, blown and cast film extrusion, and extrusion coating. GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Damman, India, Kabra Gloucester Engineering.
About Blue Wolf Capital Partners
Blue Wolf Capital Partners LLC is a private equity firm that invests in companies in which effective management of relationships with complex constituencies, such as government and labor, can change organizations and create value. For additional information, please visit www.blue-wolf.com.