Begins Process of Emerging from Chapter 11
NEW YORK, NY, Sep 29, 2010 –Gloucester Engineering Co. (“GEC”), one of the leading providers of equipment for the plastics extrusion and converting industry, today announced that it has filed a Plan of Reorganization that will allow it to emerge from Chapter 11 of the bankruptcy code in the District of Massachusetts. The restructuring plan is subject to approval by the bankruptcy court. GEC expects 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.
Blue Wolf provided a credit facility to GEC in May to fund its working capital requirements and subsequently provided GEC with a $6.0 million debtor-in-possession (“DIP”) facility when GEC voluntarily filed for reorganization under Chapter 11 on June 25, 2010. The DIP financing allowed GEC to continue operating in bankruptcy and allowed it to continue accepting and processing customer orders.
Blue Wolf Partner Michael Ranson said, “This is an important milestone that will serve the company and its customers well. We are pleased with the strength that GEC has demonstrated over the past several months. The company has steadily improved its productivity, has accepted new orders, and has a clear strategy for improving its balance sheet and operations. Blue Wolf is pleased to continue as GEC’s financial sponsor and we look forward to working closely with the company as it completes its turnaround and regains its position as a leader in this growing industry.”
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.
About Gloucester Engineering Co.
Since its inception in 1961, Gloucester Engineering Co. 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, and through its joint-venture company in Damman, India, Kabra Gloucester Engineering.