Where does CGG go from here....? What does the future hold..?
12 replies (most recent on top)
If you are young, I would retrain for another career before it's too late. There's not much future in seismic with the oil price this low.
You probably remember Mike Mayer on Saturday Night Live. His brother was laid off recently from Sears Canada with no severance package. Full story in the following link:
http://www.cbc.ca/news/business/sears-mike-myers-ad-restructuring-lay-offs-1.4199261
Interesting news and video regarding Sears Canada in the following link. Sears Canada filed for Chapter 11 few weeks after CGG. Even former employees who laid off three months ago are not safe:
https://ca.yahoo.com/finance/news/time-treat-employees-like-creditors-company-applies-ccaa-protection-210246689.html
Not sure the point of the last post perhaps referred to the wrong post but surely the message is more important than spelling/grammar Possibly a post from some pompous manager or HR person
To whom who is still employed by CGG,
what is your position?
You have made many grammar mistakes in your post.
I am currently working for CGG. People are very positive here. I should admit we have a crisis but our hope still alive, we believe we can survive. I have a plan to stay and collect a paycheck as long as possible. There is nothing out there, most of my colleagues who laid off last year still looking for jobs. Geoscience market had better days!
It is very stressful these days but still better than sitting at home!
A competitor could buy the whole lot for 100m euros today if you buy up all the shares. Bargain! except from day 1 you have also bought the $3bn debt to service too! I think any sensible money will wait for the hard work of the financial restructuring to be done first. That is if it works! Even then you are still going to have over $1bn debt to service. In a healthier market as the previous post says that might be something that would fly. The rediculous Tour Maine-Montparnasse offices would be first on the list to go and all the nonsense that goes with that - then you might consider if you want to be HQ'd in France at all; not a huge choice of clients in Paris and a militant union to deal with too. Not a compelling buy. Selling off bits and pieces might be easier in the long run. Probably have to start doing some of that anyway in order to get investors on side.
Well, from my angle, CGG will be around, but much weaker. Re-restructuring or shutting down centers or some of departments will be on the table. PIK loan is their last bullet. They don't want to go down without a last fight. Filling Chapter 11 was very risky but PIK loan is beyond that. If the market was a bit heather or seismic market had some hope in the short term merger or being bought by A or B was an option BUT everyone is bleeding these days and CGG huge debt is another No Go. Best case scenario, CGG will be a new underdog in the seismic market
Start aggressively looking for another job. Slim chance you will find one. So just stay and collect a paycheck for as long as possible.
CGG news a few days ago
http://www.cgg.com/en/Investors/Press-Releases/2017/06/Opening-of-Placement-Period-for-subscription-commitments
PIK loan, what's that? (sounds expensive to me)
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This article needs additional or better citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2011) (Learn how and when to remove this template message)
A PIK (Payment In Kind) loan is a type of loan which typically does not provide for any cash flows from borrower to lender between the drawdown date and the maturity or refinancing date, not even interest or parts thereof (see mezzanine loan), thus making it an expensive, high-risk financing instrument. PIK is to be interpreted as interest accruing until maturity or refinancing.
I am still working for CGG. Should I look for another job?
Probably will be bought by a competitor taking advantage of our low share price, then broken up into different departments (acquisition, processing, reservoir, etc. ) and sold off or shut down one by one.
Processing is the only dept making money now, so it might be a nice acquisition for an oil company to broaden their skills. On the other hand, another processing shop like DUG or BGP could easily buy us out, and shut down processing, to remove us as competitors. This is effectively what CGG did to Fugro processing.