“Over the past several months, CGG has been in negotiations with our key financial creditors on the terms of a consensual financial restructuring to provide the Company with additional financial flexibility to navigate current market conditions for long-term success.
On June 2, 2017, CGG announced an agreement-in-principle with our key financial creditors, which will allow the Company to restructure its balance sheet, raise new money, and reduce its debt levels and annual cash interest costs to align them with our current size and market conditions, while preserving the integrity of the Company. We executed the agreement with our key financial creditors on June 13, 2017.
To implement the terms of the agreement for our comprehensive pre-arranged restructuring, CGG S.A. commenced a Sauvegarde restructuring proceeding in France, and filed a chapter 15 petition in the Bankruptcy Court seeking recognition of the Sauvegarde as a foreign main proceeding on June 14, 2017. On the same day, fourteen direct and indirect CGG’s subsidiaries (U.S. and non-U.S.) filed voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. CGG is now seeking an agreement with the required majority of creditors. Subject to their support and the plan’s approval by the shareholders’ general meeting, this agreement will become bidding for all creditors following court approval.
CGG will continue normal day-to-day business operations, and the restructuring process will not affect our 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. CGG will make timely payment to vendors in the normal course for all goods and services provided after the court proceedings.
With the support we have from our key financial creditors, and agreement on a “pre-arranged” restructuring, we expect that our financial restructuring can move forward quickly to strengthen our balance sheet and to position the company well for the future.”