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

CGG Holding Plan Effective, Summarized

CGG Holdings (U.S)'s Joint Chapter 11 Plan of Reorganization [Further Revised] became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on October 16, 2017. BankruptcyData's detailed Plan Summary notes, "A 100% recovery to Allowed General Unsecured Claims and all creditors who are Unimpaired under the Plan; a new money infusion of up to $500 million; a principal reduction through an up to $150 million pay down and extension of the remaining terms of the prepetition secured funded debt; and deleveraging the Company's balance sheet by equitizing approximately $1.54 billion of prepetition Senior Notes and $403.5 million in prepetition Convertible Bonds." The Company states that this restructuring meets its objectives of strengthening CGG Holding (US)'s balance sheet and providing financial flexibility to continue investing in the future. This plan comprised (i) the equitization of nearly all of the unsecured debt, (ii) the extension of the maturities of the secured debt and (iii) the provision of additional liquidity to meet various business scenarios. As part of the implementation of its financial restructuring plan, the Company issued the following: $663.6 million in principal amount of first lien secured senior notes due 2023, bearing floating rate interest at Libor (floor of 1%) + 6.5% in cash, and 2.05% paid-in-kind (PIK) (issued by CGG Holding [U.S.] Inc.) in exchange for the balance of the secured loans taking into account an upfront paydown of US$150 million; $355.1 million and €80.4 million in principal amount of second lien secured senior notes due 2024, bearing floating rate interest at Libor (floor of 1%) + 4% in cash, and 8.5% paid-in-kind (PIK) (issued by CGG SA) (comprising $275 million and €80.4 million as new money and $80.2 million in exchange for part of the accrued interest claims under the senior notes; 71,932,731 shares of the Company each with one share purchase warrant, all of which were subscribed by holders of preferential subscription rights; 35,311,528 new shares resulting from the equitization of the convertible bonds; 449,197,594 new shares resulting from the equitization of the senior notes; 22,133,149 warrants allocated to the shareholders of CGG; 113,585,276 warrants in favor of the subscribers to the second lien notes; 7,099,079 warrants allocated to the members of the ad hoc committee of holders of senior notes and 10,648,619 warrants allocated to the members of the ad hoc committee of holders of senior notes. This oil and gas industry-related geosciences services provider filed for Chapter 11 protection on June 14, 2017, listing $181 million in pre-petition assets. Visit BankruptcyData for a detailed Plan Summary.

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