Global Geophysical plan draws objection from state revenue department

By Kali Hays

New York, Dec. 4 – The Louisiana Department of Revenue (LDR) objected to confirmation of Global Geophysical Services Inc.’s proposed plan of reorganization, according to a Thursday motion with the U.S. Bankruptcy Court for the Southern District of Texas.

The LDR says that the current plan fails to outline a payment of its secured priority tax claim totaling $825,348, nor does it include any default remedies, and is therefore in violation of Bankruptcy Code.

Unless language is included in an amended plan that provides the LDR with full payment of its claim or means to remedy a default of the payment, it said that the court should deny confirmation of the plan.

As previously reported, the court approved the disclosure statement related to Global Geophysical’s proposed plan Oct. 30.

A hearing to confirm the plan is set for Dec. 9.

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. The Chapter 11 case number is 14-20130.

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