CGG lenders lift financial covenants under French, U.S., Nordic loans

By Marisa Wong

Morgantown, W.Va., Jan. 5 – CGG’s lenders agreed to not apply the financial maintenance covenants under the company’s French and U.S. revolving credit facilities and its Nordic loan for the period ended Dec. 31, according to a press release.

The maintenance covenants are leverage ratio and coverage ratio covenants.

The company said it began discussions with its lenders on Dec. 9 as a protective measure, given the difficult market environment.

The company said it expects the market environment to be about the same in 2017 and to continue to weigh on its revenues and that it considers the group’s debt level to be too high.

The company intends to begin discussions with all stakeholders to reach a financial restructuring. The objective of this restructuring would be to provide the company with a level of indebtedness and cost of debt that is substantially reduced and sustainably adapted to its revenues.

In order to facilitate discussions with all stakeholders, the company wants to appoint an ad hoc representative, which requires the approval of the relevant creditors under various credit agreements and bond documents.

CGG is a Paris-based manufacturer of seismic equipment and a provider of geoscience services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.