Gloucester Engineering Files Plan of Reorganization

Begins Process of Emerging from Chapter 11

GLOUCESTER, Mass.--(BUSINESS WIRE)-- Gloucester Engineering Co. (GEC), one of the leading providers of equipment for the plastics extrusion and converting industry, today announced that it has filed its Plan of Reorganization, an important step in its effort to emerge from Chapter 11 bankruptcy protection. The company's Plan of Reorganization is being sponsored by an affiliate of Blue Wolf Capital Fund II ("Blue Wolf") and has the support of the Creditors' Committee. The restructuring plan is subject to approval by the bankruptcy court. GEC expects to emerge from bankruptcy by the end of the year.

Carl Johnson, President of GEC, said, “This is the next step in executing our turnaround. GEC has continued to operate efficiently since filing for Chapter 11 in June and there has been no disruption to customers. Last month, we announced a new $3.3 million order for new blown film equipment from a major customer in Southeast Asia and we recently received a $2mm order from a leading European film supplier. Our pipeline is strong and we expect to win additional new business imminently. With the ongoing financial support of Blue Wolf, which first extended credit to GEC in May and later provided DIP financing, we have accelerated our productivity and are well on our way to returning to profitability.

Our customers have remained loyal as we have worked to improve our cash flow and streamline our organization. We look forward to moving ahead as a strong, leading participant in our industry."

About Gloucester Engineering Co. Inc.

Since its inception in 1961, Gloucester Engineering Company has been a global leader in advancing quality and production limits in the plastics extrusion and converting market. GEC offers a range of innovative system and component solutions, for both new lines and retrofits, that provide customers a competitive edge in applications that include bag making, foam and sheet extrusion, blown and cast film extrusion, and extrusion coating.

GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Damman, India, Kabra Gloucester Engineering.

About Blue Wolf Capital Partners

Blue Wolf Capital Partners LLC is a private equity firm that invests in companies in which effective management of relationships with complex constituencies, such as government and labor, can change organizations and create value. For additional information, please visit www.blue-wolf.com.

Contacts

For Gloucester Engineering
Carl Johnson, 978-282-9200
or
For Blue Wolf Capital Partners
Caroline Luz, 203-656-2829
Owen Blicksilver Public Relations, Inc.

Source: Blue Wolf Capital Partners LLC