Houston-based seismic firm SAExploration Holdings has voluntarily filed petitions for chapter 11 protection in the US Bankruptcy Court after entering into a restructuring support agreement with its creditors.
“After several months of careful consideration of how best to navigate the uncertainty of the global economy due to the coronavirus pandemic, along with the decreased demand for oil, our debt levels, and the difficulties associated with monetizing Alaskan tax credits, SAE’s board of directors and management, along with our advisors, concluded that the best path forward for SAE and its stakeholders is to seek Chapter 11 protection,” said Mike Faust, SAE’s CEO.
During the restructuring process, the company expects to maintain global business as usual. It has filed customary motions that will allow it to maintain employee wages and benefits as well as meet vendor agreements and pay expenses. The company will continue to be led by the current executive management team.
According to the restructuring scheme, the proposed plan of reorganisation would eliminate approximately $74m of debt from the company’s balance sheet.
“Our industry has been hit hard. However, the good news is, we expect to operate seamlessly during the restructuring, retain employees and pay our expenses. Our management team should remain in place. Once we emerge from Chapter 11, we expect to be well positioned for growth and to continue meeting the needs of our customers,” Faust added.