SOURCE: General Environmental Management

General Environmental Management

June 04, 2009 09:00 ET

GEM and The ComVest Group (CVC California, LLC) Amend & Revise Loan Agreements

Receives Waiver on All Previous Defaults

Modifies Covenants to Adjust for Current Economic Conditions

POMONA, CA--(Marketwire - June 4, 2009) - General Environmental Management, Inc. (OTCBB: GEVI), a leading environmental and waste remediation company, announced today it has entered into an agreement with its senior lender, CVC California, LLC, ("CVC"), to amend (the "Amendment") certain of the original loan documents (the "Documents"). Pursuant to the Amendment, CVC has waived all previous Events of Default, revised terms of certain Covenants of the Revolving Credit and Term Loan Agreement and cancelled certain warrants. In consideration GEM paid fees consisting of common stock and a promissory note and agreed to amend the Convertible Term Note and the terms of certain warrants to purchase shares of the Company's common stock.

"We are very pleased that CVC waived all previous events of default under the original documents and amended the documents to be in line with the realities of the current economic conditions," stated Tim Koziol, CEO. "We have worked very closely with CVC to restructure and reset the covenants to reflect performance expectations in the current marketplace. CVC has cooperated fully with the company to ensure that our company has the capital resources to continue to build our business, to improve operating results and bring value to our shareholders. At a time when many companies are unable to restructure their debt, we are very pleased with the cooperation from our debt holder to modify our agreements so they reflect the economic realities of the historic economic times we are operating in. The waiver of default along with the restructuring and resetting of the covenants provide GEM with the necessary resources to continue to grow a successful business."

About General Environmental Management, Inc.

General Environmental Management, Inc. (www.go-gem.com) is a full-service hazardous waste management and environmental services firm providing integrated environmental solutions managed through its proprietary web-based enterprise software, GEMWare, including the following service offering: management and transportation of waste; design and management of on-site waste treatment systems; management of large remediation projects; response to environmental incidents and spills; and environmental, health and safety compliance. Headquartered in Pomona, California, GEM operates eight field service locations and one Treatment, Storage, Disposal facility (TSDF), servicing all markets in the Western U.S.

Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of GEM. No forward-looking statement can be guaranteed. GEM undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect GEM's business.

Contact Information

  • Contact:
    Company Contact:
    General Environmental Management (GEM)
    Tim Koziol
    909-444-9500