French geophysical services company CGG has moved to implement a pre-arranged restructuring, with the company filing for Sauvegarde (safeguard) proceedings in France and certain subsidiaries filing for Chapter 11 in the US.
The company says it will now seek a restructuring agreement with the required majority of creditors subject to approval by shareholders. The restructuring will result in a group with pro-forma leverage below 2x, no debt maturing before 2022 and a $1bn liquidity improvement.
Jean-Georges Malcor, CEO of CGG, commented: “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.”
Malcor added that CGG will continue normal business operations and the restructuring would not affect its relationships with clients, business partners, vendors and employees.