GSI Group Inc. Equity Committee Comments on Proposed New Reorganization Plan

BILLERICA, Mass., March 15 /PRNewswire-FirstCall/ -- The Official Committee of Equity Security Holders of GSI Group, Inc. (Pink Sheets: GSIGQ) announced today that it unanimously rejects the proposed agreement in principle announced between GSI and certain of its senior noteholders.  As with the original plan, the Equity Committee believes that the proposed modified plan gives the noteholders a recovery on their claims substantially greater than what they are entitled to receive under applicable law.

"After months of negotiations between the Equity Committee and the noteholders that resulted in substantial improvements to the recovery of the Company's equity holders, rather than supporting the Equity Committee's efforts to obtain the highest possible recovery for equity holders, the GSI Board intervened and yet again sided with the noteholders," said Stephen W. Bershad, Chairman of the Equity Committee.  "But for the efforts of the Equity Committee, GSI and the noteholders would have crammed through the original plan that provided value to equity holders equivalent to a per share price of approximately $0.60 per share.  Negotiations between the Equity Committee and noteholders have increased that recovery to a per share price of approximately $1.60 per share.  Based on revised projections provided by the Company to the Equity Committee, the committee believes that even the modified plan gives the noteholders too great a recovery.  The Equity Committee will continue to fight to improve the recovery to equity holders further, and is prepared to challenge the modified plan in bankruptcy court and may seek to propose and solicit its own plan of reorganization."

SOURCE The Official Committee of Equity Security Holders of GSI Group, Inc.

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