A court in Paris, France has approved the safeguard plan of CGG, a marine seismic acquisition and processing company.
The French company on Friday said that the Commercial Court of Paris had approved the plan, after finding the claims filed by certain holders of CGG’s convertible bonds against this draft plan inadmissible.
Following shareholders’ approval of all resolutions required to implement CGG’s financial restructuring plan earlier in November, the next step in the process was the sanctioning of the safeguard plan by the Paris Commercial Court, which has now been fulfilled.
The next procedural step of CGG’s financial restructuring is the hearing scheduled on December 21, 2017 to consider the motion for the recognition of the ruling approving the safeguard plan by the competent US Bankruptcy Court within the context of the Chapter 15 proceedings, CGG said.
Subject to in particular a favorable decision by the US Bankruptcy Court, the rights issue with preferential subscription rights and allocation of free warrants to shareholders are expected to be launched in mid-January, with the settlement and delivery of the various securities issuances provided for under the restructuring plan expected to occur by the end of February 2018.
CGG noted that convertible bonds due 2019 and the convertible bonds due 2020 may now only give right to CGG shares according to the terms of the approved safeguard plan.
The company in November posted a net loss of $124.4 million for 3Q 2017 on revenues of $320 million. This compares to $88 million net loss and revenues of $264 million in the prior-year third quarter.
Offshore Energy Today Staff