Gloucester Engineering (GEC, Gloucester, Massachusetts / USA; www.gloucesterengineering.com) has taken a significant step towards emerging from bankruptcy in the US with the approval by the bankruptcy court in the District of Massachusetts of its disclosure statement for its plan of reorganisation. The company said the court's approval was an important milestone as it will allow its creditors to vote on the plan. Ballots were sent to the creditors on 17 November 2010 and a confirmation hearing is scheduled for 20 December 2010.

GEC president Carl Johnson said: “This is an extremely positive development for our company, and we encourage our creditors to vote in favour of the plan as well, as we believe it represents the highest possible recovery for them.” Michael Ranson, partner at private equity investor Blue Wolf Capital Fund II (New York, New York / USA; www.blue-wolf.com), which is sponsoring the plan of reorganisation, said: “We are very pleased with the court’s decision, which paves the way for the company to emerge from bankruptcy by the end of the year. GEC’s restructuring is on track and is already yielding positive results as the company has steadily improved its productivity, accepted new orders, and devised a clear strategy for improving its balance sheet and operations.” GEC’s subsidiary, Gloucester Engineering Europe (Vienna / Austria) emerged from bankruptcy on 12 November 2010 – see Plasteurope.com of 18.11.2010.