U.S. creditors of the French geophysical player CGG have accepted the company’s proposed restructuring plan under Chapter 11 of the U.S. bankruptcy law as the company is working to reduce its massive debt.
The French company informed on Monday that all creditors entitled to vote on the Chapter 11 plan proposed in the Chapter 11 cases started on June 14, 2017, in the US Bankruptcy Court for the Southern District of New York by CGG SA’s 14 main foreign, direct and indirect subsidiaries, each a borrower or guarantor in respect of CGG Group’s funded financial indebtedness, had accepted the plan overwhelmingly.
Specifically, CGG said, all holders who have cast ballots in respect of the secured loans, and 97.14% in number and 97.96% in amount of those casting ballots in respect of the senior notes, voted in favor of the plan.
Prior to the approval by the U.S. creditors, CGG in late July received an approval of the creditors involved in the French safeguard.
At the end of the second quarter of 2017, CGG’s gross debt was $2.812 billion. Available cash was $315 million and group net debt was $2.497 billion. The company’s restructuring plan entails full conversion of unsecured debt into equity and raising up to $500 million of new money through a $125 million rights issue and the issuance of $375 million of new secured second lien senior notes with a six-year maturity.
CGG CEO, Jean-Georges Malcor, explained in July that the plan would result in a $2 billion net debt reduction and would provide the necessary liquidity to support the company’s turnaround.
Following this latest approval, the next step will be the approval of the financial restructuring plan at the shareholders’ Extraordinary General Meeting at the end of October.
Offshore Energy Today Staff