GSE Environmental Inc., a maker of landfill liners and manhole systems, won court approval of a reorganization plan that hands control of the company to holders of $173.4 million in secured notes, Bloomberg News reported on Friday. Bankruptcy Judge Mary Walrath approved a program giving all the new stock to first-lien lenders, including Littlejohn Opportunities Master Fund LP, Tennenbaum Opportunities Partners V LP and Strategic Value Partners LLC. Under the plan, negotiated with first-lien lenders before the May chapter 11 filing, trade claims will be paid in full if the creditor is willing to continue doing business with GSE for one year and grant normal market trade-credit terms. General unsecured creditors will share a $1.3 million recovery pool.
