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Goss restructures, American operations file Chapter 11

Sep 7, 2001 12:00 AM

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Goss Holdings, Inc. (Westmont, IL), the parent company of Goss Graphic Systems, Inc., manufacturer of web offset presses, is undergoing a worldwide strategic restructuring. The company’s global manufacturing operations will be conducted from its international affiliates in the UK, France, Japan and China.
Goss will also eliminate approximately $290 million in secured bank and unsecured bond debt to deleverage its balance sheet and to enable the company to compete more competitively. The banks and holders of Goss’ bond debt will become majority owners of the restructured company, which will be known as Goss International. Reportedly, the company’s lenders and a majority of bondholders and current equity holders fully support the company’s plan.
According to Goss chairman Tom Cochill, "Our prime role is to support all our worldwide customers. This restructuring reflects the market’s high level of confidence in our international operations, which have enjoyed strong orders from our European and Asian customers." Cochill adds that customers in the Americas will continue to be well supported; Goss will retain a sales, installation and service organization in the U.S. to support the installed base of newspaper presses and new presses supplied from European and Asian plants.
In order to implement this plan, Goss’ American operations commenced Chapter 11 reorganization proceedings. As part of the filing, the company filed with the court a pre-arranged plan of reorganization, as well as papers seeking approval of a new $90 million lending facility from certain lenders. The company’s international affiliates are not part of the Chapter 11 filing.