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Global Geophysical Services Disclosure Statement Approved

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The U.S. Bankruptcy Court approved Global Geophysical Services’ Disclosure Statement for its Second Amended Joint Plan of Reorganization. According to the documents filed with the Court, “The Plan and this Second Amended Disclosure Statement are the result of months of extensive negotiations among the Company, an ad hoc group of Senior Noteholders (the ‘Ad Hoc Group’), and the Committee (the Committee together with the Ad Hoc Group, the ‘Supporting Creditors’). Together the Ad Hoc Group holds approximately 57% of the Senior Notes and substantially all of the Company’s $151.9 million DIP Loan….The Plan provides, among other things, that the Debtors will: (a) enter into Exit Credit Facilities, consisting of a term loan of up to $100 million, and a revolving credit facility or delayed draw term loan of up to $50 million; (b) repay in full the Term A Loans…in cash and a portion of the Term B Loans…in cash and provide new equity for the remaining portion of the Term B Loans…; (c) exchange existing Financial Claims for a combination of new equity and warrants; (d) offer new equity to certain holders of existing Financial Claims in the Rights Offering in exchange for cash; (e) provide a cash distribution to holders of Trade Claims; and (f) cancel existing equity. The current holders of Financial Claims will own approximately 11.95% to 32.71% of the new equity of GGS Holdings (subject to dilution) in exchange for their Financial Claims upon confirmation of the Plan. In addition, while the Term B Loans are required under the Bankruptcy Code to be paid in full in cash in order for the Company to exit bankruptcy, members of the Ad Hoc Group have agreed to convert, on a pro rata basis, an amount not less than $51.9 million and not more than $68.1 million of the Term B Loans.” The Court scheduled a December 9, 2014 hearing to consider the Plan.

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