French seismic contractor CGG said it has begun legal processes to implement a pre-arranged restructuring, with the opening of a Sauvegarde proceeding in France and Chapter 11 and Chapter 15 filings in the U.S.
The announcement follows execution of legally binding agreements in support of the terms of the agreement-in-principle with key financial creditors announced on June 2, 2017.
CGG will now seek an agreement with the required majorities of creditors. Subject to their support and the plan’s approval by the shareholders’ general meeting, this agreement will become binding on all creditors following court approval.
Jean-Georges Malcor, CEO of CGG said: “CGG has accomplished a major step today for its comprehensive financial restructuring plan. The June 2, 2017 agreement-in-principle with our main creditors and DNCA has been signed and the restructuring plan meets our objectives of substantially reducing the debt on our balance sheet while preserving the integrity of the CGG Group.
“CGG will continue normal business operations during this process, and the restructuring transactions will not affect relationships with our clients, business partners, vendors or employees. We will maintain our commitment to operational excellence and our customers can be confident that they will continue to receive the best-in-class service and support and innovative solutions they are accustomed to without interruption. We expect that our financial restructuring can move forward quickly to strengthen our balance sheet and to position the company well for the future.”