http://www.dailymail.co.uk/wires/reuters/article-4883160/CGG-bondholders-launch-legal-action-against-bankruptcy-process.html
Any info on this?
6 replies (most recent on top)
They appear to be saying that the cash requirements of CGG (cash burn) was $400m for 2016. In 2017 this will be about $300m. Their 'rescue' package is agreed around raising $500m by very early 2018. However, $245m of it is already earmarked for the massive repayments to the new loans agreed. The remaining $255m allows only $75m for equity - basically that is the only inherent value these bond holders get in the deal. The remaining free cash of $180m will get burned up in no time. In short, this plan is not robust enough and they see (but obviously they are not stating this) the plan failing by mid 2018. So this group of bond holders are trying to get the courts to agree to review what they have signed off on and to come up with a new plan.
Actually they are all missing that you can keep throwing plans around as much as you like. The incompetent management will just keep losing cash as historically they have always done, even in the good times. Still, from their point of view they have to do something!
If this was an actor staggering back and forth in a dying scene on stage we would all be shouting 'ham, ham - get off!'
Sinopec rumour was the only true resolution - just throw tons of cash from China at the problem.
May end up in public scandal because former executive of CGG is now chief of staff to current prime minister.
Not much related to layoffs
Wonder what this means for the restructuring?
I guess they are fighting about the will. French bondholders think that their American counterparts will get more than they do.
More info here
http://fr.pressfrom.com/actualite/finance/-61321-des-porteurs-doceane-cgg-vent-debout-contre-le-plan-de-sauvetage/
What's that supposed to mean?