French geophysical services company CGG has finalized the implementation of its financial restructuring plan launched over a year ago.
Upon the finalization of the restructuring plan on Wednesday, CGG said that the plan meets its objectives of strengthening its balance sheet and providing financial flexibility to continue investing in the future.
This plan comprised the equitization of nearly all of the unsecured debt, the extension of the maturities of the secured debt, and the provision of additional liquidity to meet various business scenarios.
Regarding the finalization of the implementation of the financial restructuring plan, Jean-Georges Malcor, CEO of CGG, said: “Today marks the completion of our financial restructuring initiated more than a year ago. I would like to thank all stakeholders and notably the shareholders for their trust. This success was also made possible thanks to the continuous support of our customers and the daily commitment of the Group’s employees throughout this difficult period.
“Following completion of all the transactions provided for in the financial restructuring plan, CGG now benefits from a restored balance sheet with a level of gross financial debt reduced to approximately $1.2 billion and a net financial debt / EBITDAs 2017 ratio estimated to be less than 2x, immediately after completion of the transactions.
“CGG is now an integrated Geosciences group, with leading technological positions that are fully adapted to its clients’ new needs, and which looks to the future with confidence and determination.”
It is worth mentioning that Jean-Georges Malcor last December announced he would be leaving his position after eight years as CEO of CGG once the company completes its financial restructuring.
Malcor will step down when his successor is appointed but he will remain in the company until his retirement on October 1, 2018 in order to support the new CEO.