http://www.offshoreenergytoday.com/cgg-faces-uncertainties-to-carry-on-as-a-going-concern/
The company’s restructuring plan entails full conversion of unsecured debt into equity and raising up to $500 million of new money through a $125 million rights issue and the issuance of $375 million of new secured second lien senior notes with a six-year maturity.
In its financial report for the second quarter 2017 on Friday, the French company said that, as of July 27, 2017, it faces material uncertainties that may cast substantial doubt upon its ability to continue as a going concern.
According to the company, even under the protection of the court procedures and despite having successfully implemented during the first six months of 2017 all planned specific actions related to marine liabilities, fleet ownership and major contract factoring, the $315 million of group liquidity as of June 30, 2017 does not allow to fully fund its current operations until at least June 30, 2018.
CGG explained that the ability of the group to continue as a going concern then depends essentially on the effective and timely implementation of the proposed restructuring plan, especially the raising of up to $500 million of new money by early 2018. Should the creditors involved in the French safeguard and US Chapter 11 procedures or the shareholders fail to approve the proposed restructuring plan and/or should the targeted implementation timetable of such restructuring plan not be met, the group liquidity would decrease below the required level to run the operations no later than in the first quarter of 2018 according to the company cash flow forecasts.