On march 3, 2017, CGG S. a. (“CGG” or the “Company”) has initiated a process of financial restructuring in order to drastically reduce the debt and its cost in cash in line with its cash generation. In order to facilitate these discussions relating to the restructuring carried out under the auspices of a representative ad hoc CGG has entered into confidentiality agreements and initiated discussions with (i) certain members of the ad hoc committee representing a majority in principal amount of the secured debt (the Coordinating Committee of Lenders Secure), (ii) the members of the ad hoc committee representing approximately 40 % of the principal amount of the Senior Notes (the ad hoc Committee of Senior Notes), (iii) the representative of the masses of holders of the convertible bonds (which also owns approximately 8.9% of the convertible bonds maturing in 2019 and approximately 10.0% of the OCEANESs expiring in 2020), (iv) DNCA, shareholders representing approximately 7.9% of the share capital and approximately 7.7 % of the voting rights of CGG, as well as approximately 19.1% of outstanding principal amount of the Senior Notes maturing in 2020 and approximately 20.7% of the convertible bonds maturing in 2020 and (v) two other significant shareholders, Bpifrance Participations representing approximately 9.4 % of the share capital and approximately 10.8 % of the voting rights of CGG, and AMS Energy representing approximately 8.3 % of the share capital and approximately 8.1 % of the voting rights of CGG (collectively, the Parties).
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In accordance with the confidentiality agreements, CGG shall make public, not later than may 12, 2017, the progress to date of negotiations relating to its financial restructuring and certain information that was previously confidential, among which certain financial objectives and additional information on its business segments. The presentation below, entitled “the Presentation of the business plan and proposal for financial restructuring” and that is available in the “investor relations” on the website of the Company, summarises the state of progress of the negotiations and the information that was previously confidential referred to above (see pages 7 to 17), in particular, certain information relating to the business plan 2017-2019. It is broadcast in accordance with the obligations of the Company under confidentiality agreements and to satisfy its obligations of disclosure to the market of all privileged information shared with the Stakeholders during the discussions.
Jean-Georges Malcor, ceo of CGG, said : “The discussions have been complex due to the extensive effort required to all stakeholders. The proposal that we have made is in the best interest of the Company. It preserves the integrity of the Group and provides a framework sustainable for the business, the employees and the customers of the Company. This restructuring proposal is based on a debt important with a gross debt of about US $ 3 billion reduced to about $ 1 billion US dollars by conversion into shares and gives the Company the financial flexibility necessary to take into account the different scenarios of recovery. The shareholders have the opportunity to participate significantly in the recovery of the Company after the restructuring, through the capital increase with maintenance of the preferential subscription right and of the two types of warrants which are reserved for them. This proposal is supported by several of the key Stakeholders. We seek to enlist the support of other Stakeholders in this comprehensive proposal.”
The listing of the shares and the OCEANEs CGG (Shares Code ISIN : FR 0013181864, the convertible bonds 2019 ISIN Code : FR 0011357664, OCEANEs 2020 ISIN Code : FR 0012739548) will be suspended by Euronext until may 12, 2017, at 15: 30.
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