Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Geokinetics Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: March 26, 2013
Key Contacts
Back
Geokinetics, a provider of seismic data, has filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code in Wilmington, Delaware. The voluntary bankruptcy will help the company accomplish its previously announced financial restructuring.
The Houston-based corporation listed $12 million in assets and $351 million in liabilities. However, an agreement with the holders of more than 70 percent of its secured notes will enable Geokinetics to convert roughly $300 million of debt to equity. The company has also secured $25 million in debtor-in-possession financing from senior note holders to facilitate the bankruptcy process.
Furthermore, the company has submitted a prepackaged bankruptcy plan – which is subject to court approval – that will ensure that all unsecured creditors are paid in full once the plan is confirmed. The company said it has received overwhelming support from its stakeholders, and expects the bankruptcy court to approve the plan within 45 days.
“Today we have taken a decisive step to strengthen our balance sheet and emerge a stronger company that is well-positioned for growth on the horizon in all three product lines and enhances profitability, while maintaining our commitments to our customers, employees, and vendors,” said David Crowley, president and CEO of Geokinetics.
Geokinetics decided to restructure its company after it missed a $14.6 million interest payment due December 15 on the secured notes.
The company also noted that it plans to continue normal business operations and does not expect the restructuring to interrupt any aspect of its operations. It has petitioned the bankruptcy court to approve the payment of wages, salaries, and other employee benefits, as well as payments to certain critical vendors, including foreign vendors.
The corporation is currently the largest Western contractor that acquires and processes seismic data and provides multi-client seismic data to the oil and gas industry worldwide.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Geokinetics Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Geokinetics, a provider of seismic data, has filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code in Wilmington, Delaware. The voluntary bankruptcy will help the company accomplish its previously announced financial restructuring.
The Houston-based corporation listed $12 million in assets and $351 million in liabilities. However, an agreement with the holders of more than 70 percent of its secured notes will enable Geokinetics to convert roughly $300 million of debt to equity. The company has also secured $25 million in debtor-in-possession financing from senior note holders to facilitate the bankruptcy process.
Furthermore, the company has submitted a prepackaged bankruptcy plan – which is subject to court approval – that will ensure that all unsecured creditors are paid in full once the plan is confirmed. The company said it has received overwhelming support from its stakeholders, and expects the bankruptcy court to approve the plan within 45 days.
“Today we have taken a decisive step to strengthen our balance sheet and emerge a stronger company that is well-positioned for growth on the horizon in all three product lines and enhances profitability, while maintaining our commitments to our customers, employees, and vendors,” said David Crowley, president and CEO of Geokinetics.
Geokinetics decided to restructure its company after it missed a $14.6 million interest payment due December 15 on the secured notes.
The company also noted that it plans to continue normal business operations and does not expect the restructuring to interrupt any aspect of its operations. It has petitioned the bankruptcy court to approve the payment of wages, salaries, and other employee benefits, as well as payments to certain critical vendors, including foreign vendors.
The corporation is currently the largest Western contractor that acquires and processes seismic data and provides multi-client seismic data to the oil and gas industry worldwide.