May 29 2010
GSI Group Inc. (Pink Sheets: GSIGQ) (the "Company" or "GSI") today announced that the United States Bankruptcy Court for the District of Delaware (the "Court") entered an order on May 27, 2010 approving and confirming the Final Fourth Modified Joint Chapter 11 Plan of Reorganization for the Company (and certain of its subsidiaries), as filed with the Court on May 24, 2010 and as supplemented on May 27, 2010, paving the way for the Company to emerge from Chapter 11 protection in the summer of 2010.
"The entire company has worked hard on our reorganization over the past few months to maximize recovery for our creditors and our shareholders while maintaining a focus on our customers and suppliers," said Michael E. Katzenstein, the Company's Chief Restructuring Officer. "We are proud to have made it through this process with a stronger balance sheet and enhanced liquidity that will position GSI for future growth."
The consummation of the plan of reorganization is subject to certain customary conditions and administrative actions that the debtors must satisfy prior to the effective date of the plan of reorganization, including, among others, the consummation of a rights offering, which the Company expects to commence by Friday, June 4, 2010. There can be no assurance that the debtors will satisfy these conditions, complete such required actions and emerge from Chapter 11 protection within the debtors' anticipated timeframe or at all.
Other Information
On May 27, 2010, the Court approved the appointment of Michael E. Katzenstein as the Company's Chief Restructuring Officer. As the Chief Restructuring officer, Mr. Katzenstein serves as the Company's most senior executive officer.
On May 27, 2010, the Court also approved the Separation and Release Agreement which the Company entered with Dr. Sergio Edelstein on May 24, 2010 in connection with Dr. Edelstein's voluntary resignation from his positions with the Company.
On November 20, 2009, the Company and two of its subsidiaries, GSI Group Corporation and MES International, Inc., filed voluntary petitions for Chapter 11 reorganization under the U.S. Bankruptcy Code in U.S. Bankruptcy Court in Wilmington, Delaware. No other subsidiaries and no subsidiaries outside of North America were included in the filing. The debtors' plan of reorganization provides for all vendors and suppliers to be paid in full for all valid pre-petition claims. GSI has continued to pay vendors and suppliers under normal terms in the ordinary course of business for all goods and services provided to the Company after the filing date of November 20, 2009.
Source GSI Group Inc.