CGG safeguard plan OK’d by Paris court; claims deemed inadmissible

By Caroline Salls

Pittsburgh, Dec. 1 – CGG’s safeguard plan was approved by the Commercial Court of Paris after the court found the claims filed by some convertible bondholders against the draft plan inadmissible, according to a news release.

CGG said the next procedural step of its financial restructuring is a hearing scheduled for Dec. 21 during which the U.S. Bankruptcy Court for the Southern District of New York will consider the company’s motion for recognition of the safeguard plan approval order as part of its Chapter 15 proceedings.

If that recognition is granted, the company said the rights issue for preferential subscription rights and allocation of free warrants to shareholders is expected to be launched in mid-January, with the settlement and delivery of the various securities issuances provided for under the restructuring plan expected to occur by the end of February.

According to the release, the convertible bonds due 2019 and 2020 may now only give right to CGG shares according to the terms of the safeguard plan.

The trading on Euronext Paris in CGG’s shares and convertible bonds, which was halted on Friday, will resume on Dec. 4, the company said.

CGG is a Paris-based manufacturer of seismic equipment and a provider of geoscience services. The company filed for bankruptcy on June 15 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 17-11637, and the Chapter 15 case number is 17-11636.

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