Magazine article Editor & Publisher

Goss Goes Back to Bankruptcy Court

Magazine article Editor & Publisher

Goss Goes Back to Bankruptcy Court

Article excerpt

As Goss International, press maker will swap bonds and bank debt for a majority stake, with as much as $90 million in new lending

Goss is going bust -- again. But if Goss Graphic Systems' lenders become owners, they stand ready to advance the ailing press maker up to $90 million. Goss announced it will eliminate roughly $290 million in secured bank and unsecured bond debt, with bankers and bondholders becoming majority owners of the company, restructured and renamed Goss International. Doing so, it said, requires reorganization under Chapter 11 of the U.S. Bankruptcy Code, its second in two years, for which it filed a pre-arranged plan this month with the support of owners, lenders, and bondholders.

The filing also seeks approval of a new, $90-million lending facility from some existing lenders, including "up to $48 million of liquidity for working capital requirements and letters of credit."

Goss manufactures only overseas since it closed its Cedar Rapids, Iowa, plant Aug. 31, when it also laid off 20% of its administrative staff in Westmont, Ill., (E&P, Sept. 3, p. 10). The petition for Chapter 11 protection covers only the U.S. company. Goss has remained competitive in European and Asian markets, especially in sales of its Universal single-wide models. It claims 30% market share, 80% of that outside the Americas.

Meanwhile, the customer that kept Goss in the domestic double-wide press- replacement business and whose contract revision helped keep Goss in business at all, was caught between the plant closure in the Midwest and terrorism from the Middle East that effectively ended operations at its Manhattan production plant.

New York Post Production Director David W. O'Neill had to send four trucks to the press manufacturer's Cedar Rapids assembly plant to retrieve an angle-bar nest and the C and D levels of three towers. Those remaining sections of the fourth and last press line in a new plant the paper brought into operation this year have been stored in a warehouse in Mahwah, N.J., since Sept. 14, said O'Neill.

According to O'Neill, Goss permitted the Post to pick up the press sections provided it assumed all possible liabilities. But even with the sections, the last press line still had to be erected, and Goss owed the mechanical and electrical contractors "a significant amount of money," said O'Neill.

George R. Hall Contracting and its Florida subsidiary, T. …

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