GEO Specialty Chemicals, Inc. Announces Prompt Emergence From Chapter 11
CLEVELAND, January 3 /PRNewswire/ -- GEO Specialty Chemicals, Inc. and its subsidiary, GEO Specialty Chemicals Limited (together, "GEO"), announced that they emerged from bankruptcy on December 31, 2004 pursuant to their plan of reorganization approved by the United States Bankruptcy Court for the District of New Jersey on December 20, 2004.
"GEO's emergence from Chapter 11 in just over nine months from its filing date is a testament to the hard work and commitment of our employees and the support of our financing sources, key vendors and customers. Our plan ultimately enjoyed the support of all classes of creditors and its confirmation by the Bankruptcy Court on December 20, 2004 clears the way for a significantly de-levered GEO to focus on serving its customers with a view to sustained profitable growth," said George P. Ahearn, GEO's President and CEO.
Through its reorganization GEO has discharged over US$135 million of unsecured obligations and cancelled its prepetition common shares and warrants. On December 31, GEO repaid its prepetition senior secured facilities and debtor-in-possession arrangement with its new US$125 million senior note facility. The new facility provides GEO with approximately US$10 million in additional liquidity. Pursuant to the plan, GEO will also make cash distributions of approximately US$4.3 million to general unsecured creditors and certain key continuing vendors. GEO currently intends to remain a privately held company.
William P. Eckman, GEO's Executive Vice President and CFO, said "The closing of our new financing is expected to provide adequate funding for GEO's ongoing operating needs. The combination of our improved liquidity and key continuing vendor program should allow us to return to normal trade credit terms in the near future." Mr. Ahearn added, "We have seen a significant improvement in our financial performance during the 12 months ended November 30, 2004 with EBITDA of US$22.2 million during that period, up from US$15.3 million for the same period in 2003. Revenues for the 12 months ended November 30, 2004 were US$170 million, up from US$153 million for the same period in 2003. The preliminary outlook for 2005 is for continued top line growth and an improvement in earnings driven primarily by sustained increases in the U.S. economy, more favorable export opportunities due to the decline in the dollar and higher prices overall."
GEO is a global manufacturer of specialty chemicals serving the water-treatment, rubber and plastics, coating, construction, opto-electronics and compound semiconductor industries. GEO has nineteen plants in the USA, two plants in Europe and one plant in Australia.
Some of the statements contained in this press release are forward-looking in nature, outlining future expectations or projections of results of operations or financial conditions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information or projections contained in these forward-looking statements. The forward-looking statements are based on information currently available to the Company and speak only as of the date of this press release. You are cautioned not to place undue reliance on these forward-looking statements. In addition, the Company is under no duty to update these forward-looking statements due to new information or as a result of future events.
SOURCE GEO Specialty Chemicals, Inc.
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