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Goss' Money Matters

Magazine article Editor & Publisher

Goss' Money Matters

Article excerpt

Manufacturer may exit Chapter 11 within months

Agreement among Goss Graphic Systems' principal stockholder, noteholders, and banks led to a prearranged Chapter 11 proceeding July 30 in U.S. Bankruptcy Court in Delaware.

For more than a year, Goss has experienced problems related to finances, personnel, labor, capacity, and computer systems. The company says the financial restructuring under Chapter 11 should conclude efforts to find and fix the difficulties it has faced (E&P, March 20, April 17). No jobs were eliminated and layoffs are not anticipated, says marketing director Barbara Gora.

Holders of more than two-thirds of the company's 12% senior subordinated notes due in 2006 agreed to exchange the $225 million principal amount of notes outstanding for new notes issued at half that amount, as well as for certain new company stock.

Lenders of $200 million in revolving credit and principal stockholder Stonington Partners will together supply Goss with an extra $100 million. To provide enough working capital to ensure normal operation during the restructuring, some bank lenders and Stonington also committed up to $50 million in interim financing.

Jim Sheehan, Goss chairman since December and its ceo since Robert Kuhn's departure in March, says he expects the company to emerge from Chapter 11 within several months. During that TIMe, he adds, the agreement allows "uninterrupted service" to customers. Goss also says all creditors' claims "will either not be impaired or will be paid in full over TIMe."

The printing equipment manufacturer bought from Rockwell International in 1996 has approximately two-thirds of the North American market for large and small web-offset newspaper presses. It's had a long-standing presence in East Asia and Europe. It finally cracked the German market last year with the sale of a shaftless, 70,000 Uniliner press, built at its Nantes, France, plant with a short cutoff suitable for central Europe's popular Berliner-format editions. …

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