Looks imminent from the latest press release
15 replies (most recent on top)
... and now in chapter 11.
The stock holders are not the lenders. Reducing a significant amount of debt through bankruptcy will lift a heavy financial burden from future earnings. As long as CGG does not issue a large amount of additional new shares to raise capital, then any debt reduction will increase the stock price. The best case would be to have all debt removed, but that will not happen. Be prepared for additional layoffs as part of any restructuring.
If it is happening as you suggest, why their stocks went up by ~30%?
http://www.cgg.com/en/Investors/Press-Releases/2017/06/Agreement-in-principle-on-financial-restructuring-plan
If you click on to the presentation, near the end it states voluntary court proceedings may be invoked to complete the restructuring process.
It's definitely happening.
Interesting article this morning:
https://www.lesechos.fr/industrie-services/energie-environnement/030360758623-dernier-bras-de-fer-autour-de-la-dette-de-cgg-2091001.php
Agree, it's definitely coming.
We all know the ship is sinking. If you are the bank it is time to demand the load. Fire the
entire board of French misfits - this gang could not manage a small coffee shop.
Sell off anything at pennies on the dollar. The seismic "fleet" could be sold to another company,
or just scrap metal. Docking the ships is cheaper than the burn of cash. If you work in the
company - look in the mirror and be honest - would you reapply at this Sh## hole.
Based on today's market, the yearly interest on the loan exceeds the price of the company.
CGG can barely, if at all, make the interest payments on its debt. Bankruptcy reorg will happen. Lots more layoffs and investors getting screwed. It is beyond reason how such incompetent people can rise to senior management positions and keep their jobs. There are many companies that have this problem and have suffered accordingly, for both investors and employees. Just amazing.
Page 3
http://www.cgg.com/data/1/rec_docs/3496_PR_Restructuring_Update_and_Presentation_EN.pdf
No more layoff, Cgg will bankrupt.
SOURCE?
"CGG will consider shortly commencing voluntary court proceedings, potentially in multiple jurisdictions. These court-supervised processes preserve the company’s liquidity and the value of its business, and, as numerous companies have demonstrated, can be an effective way of achieving an efficient debt restructuring with minimal disruption to the business."
fake news?
Is there a URL for this press release?