CGG calls safeguard creditor committee vote for July 28th with over 3/4 of senior note holders locked-up and subscribing for new second lien notes.
On June 14, 2017, CGG S.A. (“CGG”) announced (i) the execution of a lock-up agreement dated June 13, 2017 (the “LUA”) with certain of its key financial creditors in support of its proposed financial restructuring plan (the “Financial Restructuring”) and, in connection therewith, (ii) the opening of a Sauvegarde proceeding in France (and concurrent Chapter 11 and Chapter 15 filings in the U.S.).
Results of the private placement
In connection with the Financial Restructuring, and pursuant to the terms of the LUA, on June 27, 2017, CGG announced the opening of a placement period in accordance with the terms of a private placement agreement dated June 26, 2017 (the “PPA”), during which Eligible Holders (as defined in the PPA) of its existing Senior Notes were invited to commit to subscribe for a pro rata portion of $375 million of new six-year floating rate / 8.5% PIK second lien senior notes with warrants (collectively, the “New Instruments”) to be issued on completion of the Financial Restructuring.
CGG is today pleased to announce that as at July 7, 2017 (the end of the placement period) Eligible Holders representing 86.08% of the aggregate principal amount of the Senior Notes had committed to subscribe to the New Instruments pursuant to the terms of the PPA, and had acceded to the LUA. The issuance of the New Instruments has been backstopped by members of the ad hoc committee of the holders of the Senior Notes holding, as of the date of the PPA, 52.38% of the aggregate principal amount of the Senior Notes, who have also committed to subscribe for their pro rata shares of the New Instruments.