Seismic specialist SeaBird Exploration has announced that it has obtained all consents required for the comprehensive restructuring of the company.
In June, the bondholders of SeaBird approved the company’s debt restructuring proposal to convert up to 81.5% of outstanding debt to equity.
The company has signed an agreement with its creditor Glander, under which SeaBird will issue new shares to Glander to offset $1.9m of debt and relevant interest, while the maturity date of the remaining debt of $440,591 will be extended until June 30, 2020.
Furthermore, the company has entered into an exchange agreement and a confirmation with TGS that all SBX04 bonds outstanding under Tranche A shall be transferred to the company and that any interest on such SBX04 bonds shall be irrevocably discharged in exchange for the transfer of title to the majority of the company’s multi-client library assets to TGS, and confirmation that the company has cancelled all SBX04 Bonds under Tranche A.
In addition, SeaBird has also entered into an addendum to the Munin charter contract under which the charter period will be extended to June 30, 2020 and the charter hire will be reduced to $2,088 per day for the period from June 3, 2017 until June 30, 2020. In accordance with this addendum, the difference between the new charter hire of $2,088 per day and the remaining and unpaid previous charter hire shall be converted into SeaBird shares.
Following the completion of the restructuring, SeaBird will reduce its debt and lease burden by approximately $37.5m to $5.7m and have no significant debt maturities until June 30, 2020. However, the company also cautioned that it requires additional funding for working capital purposes and is working to obtain new equity financing.