Court Confirms Company’s Plan of Reorganization
GLOUCESTER, Mass., December 20, 2010 –Gloucester Engineering Co. (GEC), one of the leading providers of equipment for the plastics extrusion and converting industry, today announced that it has secured confirmation of its Plan of Reorganization from the Bankruptcy Court in the District of Massachusetts. The Court’s decision clears the way for Gloucester to emerge from Chapter 11 on December 31, 2010, the day the plan becomes effective. GEC’s subsidiary, Gloucester Engineering Europe GmbH, exited bankruptcy protection on November 12, 2010.
At the confirmation hearing, held today, creditors of GEC voted overwhelmingly to approve the company’s Plan of Reorganization, with 92% of the ballots cast by unsecured creditors in favor of the Plan. Blue Wolf Capital Fund II will now become GEC’s majority shareholder.
“We are delighted that the creditor votes turned out as expected and that both GEC and its European subsidiary are starting 2011 with a clean slate. We particularly appreciate the support of those creditors who signed supply agreements with us in return for participating in our new equity. We have been optimistic throughout the restructuring period, as the company has taken significant new orders for our market leading plastics extrusion equipment, and we have aggressively rationalized our cost structure. GEC will move forward as an efficient, effective partner that can ably service both new orders and its customers’ installed base,” said Carl Johnson, President of GEC.
Michael Ranson, Partner at Blue Wolf Capital, said, “Blue Wolf is deeply committed to GEC’s success and we believe that the company is well on the way to regaining its industry-leading position. The company now has a clear operating plan and a stable balance sheet and is poised to be an American manufacturing success story.”
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.