CGG (NYSE:CGG) has received a boost in its safeguard plan after a US bankruptcy court said it recognizes a French court’s ruling on the firm. The US court approved a ruling by the Commercial Court of Paris, which was delivered on December 1, 2017 regarding the firm’s Chapter 15.
Following the approval, CGG’s creditors have been barred from taking any action that is not consistent with the safeguard plan. The US court’s order essentially makes the French court’s ruling effective.
The order, which is the final in-court milestone, paves way for CGG’s planned restructuring, scheduled for February 28, 2018. The firm intends to float a rights issue with preferential rights to shareholders in mid-January. St the same time, CGG will settle different security issuances before the February restructuring. It will also allocate free warrants to shareholders before then.
However, the firm’s 2019 and 2020 convertible bonds can only give tight to shares according to the safeguard plan.
In October, the company’s long standing shareholders approved the financial restructuring plan.
Recently, CGG announced the acquisition and interpretation of an airborne magnet and gravity survey in the Perdidofoldbelt.
The firm said the new data set shows significant topographical discoveries. The acquisition of the data set is among the many activities the firm is engaging in as it awaits a massive restructuring.According to CGG chief executive officer Jean-GeorgesMalcor the firm posted encouraging results in Q2 2017 driven by improved multi client sales. Group revenue for instance surged 20% compared to 2016. With such results, he said the firm will launch a swift financial restructuring programme.
