Global Geophysical liquidation plan confirmed, DIP financing approved

By Caroline Salls

Pittsburgh, Sept. 19 – Global Geophysical Services, LLC’s first amended pre-packaged plan of liquidation was confirmed Monday by the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company filed bankruptcy to implement the plan of liquidation and wind down its business.

The plan is based on an agreement negotiated with Global Geophysical’s first-lien lenders.

Under the plan, Global Geophysical’s business will be divided into two primary groups, including a new entity to be owned 100% by the first-lien lenders which will own the multi-client library, real property owned by the company, causes of action and the proceeds of specified intercompany receivables; and a liquidating company, which will retain all assets other than the new company assets to implement the winddown.

Following the repayment of an exit working capital facility to be provided to the liquidating company by affiliates of the first-lien lenders, proceeds from the liquidating assets will be shared, with first-lien lenders receiving 66.66% of the net proceeds on account of $6 million of assumed first-lien obligations and holders of general unsecured claims and second-lien lenders receiving a share of 33.33% of proceeds.

After the assumed first-lien debt has been satisfied, 100% of net proceeds of the liquidating assets will go to the holders of second-lien claims and general unsecured claims.

As of the plan effective date, all parent interests will be deemed cancelled, and the post-effective date holding company will issue new membership interests to the plan administrator.

In addition, Global Geophysical obtained final court approval to access its $2 million debtor-in-possession facility.

Wilmington Savings Fund Society, FSB is the administrative and collateral agent.

The facility will bear interest at a rate of 15%.

The DIP financing will mature on the earliest of Nov. 1, the effective date of a Chapter 11 plan and the acceleration of the loan.

Global Geophysical, a Missouri City, Texas-based provider of seismic data services to the oil and gas industry, filed bankruptcy on Aug. 3. The Chapter 11 case number is 16-20306.

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