ORG GC Midco, LLC Commences "prepackaged" Chapter 11 Case To Strengthen Capital Structure And Reduce Debt

HOUSTON, Nov. 8, 2021 /PRNewswire/ -- GC Services Limited Partnership ("GC Services" or "Company"), one of North America's oldest and largest providers of business process outsourcing and accounts receivable management solutions, today announced that its indirect owner and parent company, ORG GC Midco, LLC ("Midco") has commenced a fully consensual "prepackaged" case under chapter 11 of the Bankruptcy Code (the "Chapter 11 Case") 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.

Midco has commenced its Chapter 11 Case in accordance with a restructuring support agreement (the "RSA") 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 ("Plan"), 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 have already voted to accept the Plan. The Chapter 11 Case and the Plan also enjoy the support of Midco's shareholders. Importantly, the Plan provides for the payment of all general unsecured claims in full in the ordinary course of business. The Chapter 11 Case and Plan represent an essential step to improve financial stability and address outstanding debt obligations.

Midco has requested that the Plan be approved and the process completed within the next 30 days.

GC Services' President and Chief Executive Officer, Mark Schordock, commented, "While GC Services is financially sound, the consolidated group has been hindered by an over-levered balance sheet. 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 Midco's restructuring process, all day-to-day operations for GC Services will be unimpacted and continue as normal. This includes service offerings, uninterrupted continuation of its contracts with its clients, payment of employee salaries and benefits, and payment of vendor obligations.

"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," added Schordock.

For more information about the Midco restructuring process visit https://cases.stretto.com/GCS.

Midco is advised in this process by Weil, Gotshal & Manges LLP as legal advisor and Riveron RTS, LLC as financial advisor.

About GC Services
GC Services is one of the industry's largest privately owned business process outsourcing and accounts receivable management solutions providers in the United States with 6,000 employees staffed throughout 30 geo-diverse contact center locations. www.gcserv.com.

Media Contact:
Jennifer E. Mercer
Paladin for GC Services
jmercer@paladinmgmt.com

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SOURCE GC Services