Global Geophysical backstop deal changes allow internal reorganization

By Caroline Salls

Pittsburgh, Nov. 4 – Global Geophysical Services, Inc. entered into a second amended backstop agreement to incorporate provisions needed to facilitate an internal corporate reorganization, according to an 8-K filed Monday with the Securities and Exchange Commission.

Under the second amendment, the company expected to form Global Geophysical Services, LLC (GGS Holdings) on Tuesday, and, beginning with the effective date of its plan of reorganization, the company will become a wholly owned subsidiary of GGS Holdings.

As a result of the internal corporate reorganization, GGS Holdings, rather than the company, will conduct the rights offering included in the plan, and eligible creditors will have the right to purchase common units of GGS Holdings rather than common stock of the company.

Global Geophysical, a Missouri City, Texas-based provider of seismic data services to the oil and gas industry, filed for bankruptcy on March 25, 2014 in the U.S. Bankruptcy Court for the Southern District of Texas. The Chapter 11 case number is 14-20130.

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