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Date Announced: 23 Jul 2010
Company Exits with Reduced Debt
BEDFORD, MA July 23, 2010-—GSI Group Inc. (Pink Sheets: LASR.PK) (the “Company” or “GSI”) today announced that it has successfully emerged from its Chapter 11 restructuring. As previously announced, the Company had filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware (the “Court”) on November 20, 2009. On May 27, 2010, the Court entered an order 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 (the “Final Plan”).
The Company entered Chapter 11 reorganization with over $210 million in debt issued pursuant to 11% Senior Notes due 2013 (the “Senior Notes”). Today, the Company emerged with approximately $107 million in debt issued pursuant to 12.25% Senior Secured PIK Election Notes due 2014 and approximately $50 million in total unaudited (global) Cash (before payment of accrued professional fees and other bankruptcy payments in an amount of approximately $15 million).
The Company’s shareholders prior to the emergence from bankruptcy retained approximately 86.1% of the Company’s capital stock following emergence (subject to the distribution of shares placed in reserve pending resolution of certain litigation matters unrelated to the Chapter 11 Cases). The remaining 13.9% of the Company’s capital stock was issued to the holders of the Senior Notes in partial exchange of such notes and pursuant to the commitment of certain holders to backstop the rights offering.
“Today marks a new beginning for the Company,” said Michael E. Katzenstein, the Company’s Chief Restructuring Officer. “In reaching this milestone, we have strengthened our balance sheet, reduced our debt and created a structure that will allow us to grow our business and build on our industry position. We are proud to have completed a long and difficult process and positioned our business for growth and offer thanks to our loyal and valued customers, our supplier community and especially our committed leadership and employees worldwide.”
“The leaders of all the GSI group of companies remained focused on serving our customers by innovating, inventing and adapting, while the Company restructured,” said Katzenstein. “Now that the reorganization process is behind us, we look forward to further dedicating resources to help our customers succeed in their markets.”
As contemplated by the Plan, the Company’s board of directors was reconstituted and the members of the Company’s new board include the following individuals: Michael Katzenstein, the Company’s Chief Restructuring Officer; Byron O. Pond, a member of the former board of directors of the Company who will continue on the new board of directors; K. Peter Heiland and Stephen W. Bershad, each of whom brings over 20 years of experience in the technology industry to the Company’s board of directors; Eugene I. Davis, who has served on over 20 boards of directors of companies in the last 5 years; Ira J. Lamel, who brings significant accounting experience and knowledge to the board of directors; and Dennis J. Fortino, who has over 15 years of experience in the semiconductor and laser technology industries.
As of emergence, the Company’s common shares are quoted on Pink Sheets OTC Markets Inc. under the following new ticker symbol: LASR.PK.
“GSI exits Chapter 11 well positioned to grow in each of its principal markets as it continues to innovate and find new ways to apply and differentiate its products and services and we believe that the company is well situated to compete in today’s marketplace. We have a talented team, industry-leading technologies and an improved balance sheet. On behalf of the newly appointed board of the company, we will focus on attracting the highest level talent and long term leadership, improving the GSI companies’ market position and of course developing and inventing. I look forward to working with our executive team in order to promote this vision to customers and suppliers and to capitalize on all the opportunities in front of a revitalized GSI” said Stephen W. Bershad, former Chairman of the Equity Committee and a member of GSI’s new Board.
Source: GSI Group
E-mail: InvestorRelations@gsig.com
Web Site: www.gsig.com
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