French oilfield service company CGG has announced the filing of applications for Protection from creditors in France and the US. It announced June 14 the opening of 'Sauvegarde' proceedings in France, and Chapter 11 and Chapter 15 protection filings in the U.S.
CGG founded in 1931 under the name Compagnie Generale de Geophysique is engaged in seismic exploration and also produces geophysical equipment under the Sercel brand.
The documents sent to the court by CGG and its divisions point out that the company has been unable to pay its debts owing to continued low prices for oil and natural gas. The company’s current Debt exceeds $3bn, while CGG expects that the restructuring will allow $1.95bn of debt to be written off in exchange for the shares of the reorganised company.
As a number of experts noted, this will be one of the biggest corporate debt-restructuring exercises in France in recent years.
"CGG will continue normal business operations during this process, and the restructuring transactions will not affect relationships with our clients, business partners, vendors or employees," said CEO Jean-Georges Malcor.
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