GLOUCESTER, Mass., Nov 12, 2010 (BUSINESS WIRE) -- Gloucester Engineering Co.
(GEC), one of the leading providers of equipment for the plastics extrusion and converting industry, today announced that it has won court approval to regain control of its European subsidiary, Gloucester Engineering Co. Europe ("GEC Europe"). This follows the dismissal by an Austrian bankruptcy court of Swiss Winding Invention's appeal of GEC Europe's settlement agreement with its creditors. GEC Europe has now emerged from bankruptcy.
"We are very pleased with this ruling, as it allows us to move forward with our European subsidiary as one unified company that provides global solutions, ranging from sophisticated equipment to aftermarket service," said Carl Johnson, President of GEC. "GEC is in the midst of an exciting rebuilding of our business, and we are confident that adding this key piece of the puzzle will accelerate our progress in Europe and globally. We thank the Court and our many European customers that stood by us during this unfortunate distraction." GEC Europe filed for bankruptcy protection in if we can't find the date, just say March, 2010. On September 1, 2010, the creditors of the European subsidiary overwhelmingly approved a settlement offer. However, Swiss Winding Invention, who was not a party to the bankruptcy proceedings, appealed the settlement agreement.
Upon the Vienna court's dismissal of Swiss Winding's appeal, the settlement agreed to between GEC Europe and its creditors became immediately effective and binding and the bankruptcy case was closed. The ruling found that not only did Swiss Winding fail to prove its alleged claim against GEC Europe, but that the original settlement as proposed by GEC was in the best interest of all creditors. The ruling also prohibits Swiss Winding from making further appeals in this case.
In the United States, GEC filed its Plan of Reorganization in September. 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.
The restructuring plan is subject to approval by the bankruptcy court.
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.
SOURCE: Blue Wolf Capital Partners LLC CONTACT: For Gloucester Engineering Carl Johnson, 978-282-9200 or For Blue Wolf Capital Partners Owen Blicksilver Public Relations, Inc. Caroline Luz, 203-656-2829 Copyright Business Wire 2010 -0- KEYWORD: United States
Massachusetts INDUSTRY KEYWORD: Manufacturing
Finance SUBJECT CODE: Bankruptcy