Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Global Geophysical Services Chapter 11 Petition Filed

Global Geophysical Services and certain of its domestic subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 14-20130 (under the docket of direct subsidiary Autoseis). The Company, which provides an integrated suite of seismic data solutions to the global oil and gas industry, is represented by C. Luckey McDowell of Baker Botts. Richard White, the Company’s chief executive officer, comments, “While Global made significant headway on a number of initiatives aimed at improving operational efficiency in 2013, the Company continued to be burdened by significant debt incurred over the past several years. Since March 17, with the assistance of our financial advisors, we have been engaged in discussions with our lenders and bondholders to begin exploring methods to improve our liquidity, including any necessary restructuring that will permit us to continue our operations and attempt to preserve the value of our assets and overall enterprise. We are beginning the process of developing a consensual financial restructuring plan that will reduce the Company’s debt and align our financial profile with the strength of our operations. Importantly, the additional DIP financing to be provided by the bondholder group will provide us with liquidity not only to execute our existing projects, but to also pursue additional programs across our key markets worldwide. Our goal is for Global to emerge with an improved balance sheet and the enhanced financial flexibility necessary to achieve long-term growth and profitability.” The Company has secured debtor-in-possession financing that provides for additional borrowing capacity through a multiple draw term loan facility in an aggregate principal amount of $60 million. The Company is seeking interim approval to immediately access up to $25 million. Global Geophysical Services’ non-U.S. subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code.

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