Company expects to exit bankruptcy in the second quarter.
On the heels of announcing a significant transaction with a subsidiary of Ahlstrom Corporation, TSG Incorporated —including Synthetics Finishing, Synfin Industries, Combeau Industries, and Longview Machinery—filed its Chapter 11 Plan of Reorganization with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. Under the terms of the plan of reorganization, which remains subject to Bankruptcy Court approval, the company proposes to restructure its long-term bank debt while offering a significant return to its unsecured creditors. “Our organization is excited, motivated, and ready to exit bankruptcy,” said Jeffrey Goldman, president and chief operating officer. “While this process certainly has facilitated the company’s recovery, we look forward to getting back to business outside of bankruptcy protection. We appreciate and are thankful for our loyal employees, customers and suppliers, all of whom continue to show tremendous support for TSG during our reorganization.”
The Bankruptcy Court has scheduled a hearing on the plan of reorganization for March 30, 2011. TSG expects to emerge from bankruptcy in the second quarter of 2011.