PARIS–CGG has reached an agreement in principle on a financial restructuring plan that would see its debt reduced from $2.75 billion to $1.15 billion.
As part of this plan, it will receive an injection of new money that it feels will “significantly” improve its liquidity position. Maturities would also be extended to 2022 and 2023.
The company plans to finalize legal documentation, including lock-up agreements, by June 12.
In March, the company entered into a financial restructuring process with the stated aim of significantly reducing debt levels and related cash interest costs and more broadly addressing its capital structure constraints.
In addition, the company will consider commencing voluntary court proceedings shortly, potentially in multiple jurisdictions.
“These court-supervised processes will be pursued to implement the agreement in principle and preserve the company’s liquidity and the value of its business. As numerous companies have demonstrated, these processes can be an effective way of achieving an efficient debt restructuring with minimal disruption to the business,” it said.
The agreement in principle is subject to final documentation as well as customary conditions.