Geokinetics files for Chapter 11
Geokinetics Inc. and some of its subsidiaries have filed voluntary petitions under Chapter 11 of the United State Code in the US Bankruptcy Court for the Southern District of Texas.
HOUSTON – Geokinetics Inc. and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the United State Code in the US Bankruptcy Court for the Southern District of Texas.
In conjunction with the filing, the company is pursuing a sale process under Section 363 of the Bankruptcy Code after entering into an asset purchase agreement with SAExploration, Inc., which will serve as a “Stalking Horse” bidder to acquire a majority of the company’s assets.
The company intends to continue to operate in the normal course of business throughout this process.
President and CEO David J. Crowley said: “Following the exploration of several strategic opportunities, today’s filing allows for the greatest amount of flexibility going forward as Geokinetics continues to provide valued services to our clients. We will work closely with interested parties to highlight the inherent strength of our talented personnel and other assets to enhance the ensuing organization.”
To facilitate the Chapter 11 process, the company has entered into a $15 million debtor-in-possession term loan to be primarily provided by certain funds managed by stakeholders in SAE. The funds provided by the debtor-in-possession lenders are anticipated to be repaid from proceeds following the closing of a sale of a majority of the company’s assets through the 363 Sale.