ORG GC Midco, the indirect owner of GC Services, a provider of business process outsourcing and accounts receivable management solutions, commenced a fully consensual prepackaged case under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. GC Services is not included in the proceedings and its operations will not be impacted.
ORG GC Midco commenced its Chapter 11 case in accordance with a restructuring support agreement entered into with 100% of its secured term lenders. Pursuant to the RSA, the company and the secured term lenders agreed to pursue a consensual balance sheet restructuring through a prepackaged plan of reorganization, upon consummation of which the secured term lenders will become the new indirect owners of the company. As of commencement of the Chapter 11 case, and consistent with their obligations under the RSA, 100% of the secured term lenders already voted to accept the plan. The Chapter 11 case are also supported by ORG GC Midco’s shareholders. Importantly, the plan provides for the payment of all general unsecured claims in full in the ordinary course of business. ORG GC Midco requested that the plan be approved and the process completed within the next 30 days.
“While GC Services is financially sound, the consolidated group has been hindered by an over-levered balance sheet,” Mark Schordock, president and CEO of GC Services, said. “The restructuring will result in a meaningful reduction in debt and allow management to focus on further strengthening the consolidated balance sheet and capitalize on new growth opportunities in the future.”
As GC Services is not a party to the filing, during ORG GC Midco’s restructuring process, all day-to-day operations for GC Services will be unimpacted and continue as normal.
“GC Services is not included in nor will its operations be impacted by the Midco proceedings. Our valued clients can be assured that we will continue to provide the services and solutions they have come to rely on. As we look to the future, we see great opportunities for growth,” Schordock said.
Weil, Gotshal & Manges is serving as legal advisor and Riveron is serving as financial advisor to ORG GC Midco.
