Reuters reports GSE Environmental Inc., the company who makes geosynthetic lining for waste management, water and mining sectors, has filed Chapter 11 bankruptcy with its affiliates late Sunday. As part of the bankruptcy agreement GSE Environmental Inc will be restructuring their lending agreements with their creditors.
GSE Environmental files negotiates financing
According to the schedules filed by GSE Environmental Inc., they have assets and liabilities between $100 million and $500 million. GSE Environmental Inc. has negotiated up to $45 million in debtor-in-possession financing.
The money will be used not only for general corporate purposes but also to repay some of its debt. As recently as November, GSE Environmental Inc. reported they had lost $1.77 per share and an estimated $35.8 million. This decrease in profits is down from their profit from the previous year which totaled $5.2 million, or 26 cents per share.
According to Reuters, “Houston-based GSE Environmental Inc. delisted from the New York Stock Exchange in March after it failed to maintain listing requirements.”
Detroit News Update for the week of May 5th
In other bankruptcy news, Reuters reports another group of Detroit retirees has accepted proposed cuts to their pension plans. This agreement is considered another success by the city of Detroit to cut pension expenses and emerge from the largest municipal bankruptcy in U.S. history.
Under the agreement pension agreement, the Detroit Retired City Employees Association, which represents 8,000 retired civilian workers, approved an estimated “4.5 percent reduction in benefits and the elimination of cost-of-living-adjustment increases to their benefits.” The plan was approved by vote late last week. The retirees will also have some voice in the process to manage their retiree healthcare system in the future.
This agreement is added to several other agreements which the city has already successfully made with groups, such as the retired police and firefighters, who agreed to will have some of their cost of living reduced.
It should be noted, however, that most of these deals are contingent on the city raising up to $816 million to aid its retired workers. Not only is the state legislature being asked to help the ailing city, other philanthropic foundations and the Detroit Institute of Arts have also pledged some money.
The goal of bankruptcy is to help Detroit eliminate the more than $18 billion of debt they have accumulated over the last thirty years, causing severe financial crisis and finally leading to the largest municipal bankruptcy in U.S. history which was filed in July 2013.
The city was supposed to submit their final plan which would outline the details of the debt repayment last week, but the court has granted an extension. The work is not over for Kevyn Orr, Detroit’s emergency manager, and other city officials. Bond insurance company Syncora Guarantee continues to fight the city over swaps settlements, and other creditors have filed an appeal in court which challenges the legal right for Detroit to file bankruptcy at all.
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