By: Jim Rosenberg Following what it called creditors' "overwhelming vote" in favor of its plan, Westmont, Ill., press maker Goss Graphic Systems Inc. received U.S. court approval of its financial restructuring toward emerging from Chapter 11 bankruptcy protection.
Goss said it will pay all claims owed to unsecured trade creditors in three equal installments three, six, and nine months after the plan's effective date. It added that all post-petition vendors' invoices are being paid on normal business terms.
The plan calls for noteholders to exchange notes in the principal amount of 225 million dollars for new notes issued in half that amount with a 21/2-year moratorium on cash interest and an almost one-third equity position. Lenders and principal stockholder Stonington Partners together will provide the company with an extra 100 million dollars (E&P, Aug. 21, p. 12; Oct. 16, p. 44).
Goss Chairman, CEO and President Jim Sheehan said he expects his company to "emerge from Chapter 11 within the next few weeks."
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(copyright: Editor & Publisher October 30, 1999) [Caption]
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