Goss To Be Bought Out Of Bankruptcy

Follow by Email
Visit Us

By: Jim Rosenberg

Troubled press maker Goss Graphic Systems Inc., with offices in Westmont, Ill., and plants in Europe and Asia, announced Friday that it had reached agreement in principle to sell its assets to three of the company’s lenders and a major note holder, which will contribute $50 million to the new entity.

Goss is in Chapter 11 bankruptcy proceedings, and a hearing will be held next week on the proposed sale. Barring higher offers, the sale will include substantially all assets of Goss’ U.S. operations, including sales, aftermarket application engineering, installation, and parts and service, as well as international subsidiaries and the company’s interest in a Chinese joint venture.

“This sale will position the new company to be a strong competitor in the global marketplace with a strong balance sheet, substantial liquidity, minimal debt, and a solid backlog of orders,” Goss President Richard J. Sutis said in a statement.

Until the closing, expected within 30 days, Goss will fund working capital requirements under an existing debtor-in-possession credit facility. Senior secured lenders and a major holder of its parent company’s subordinated notes support the transaction.

Leave a Reply

Your email address will not be published. Required fields are marked *