Seitel equity holders file alternative reorganization plan, noteholders to receive 100% recovery

By Carlise Newman

Chicago, Nov. 7 - Seitel Inc.'s committee of equity security holders filed their alternative disclosure statement and reorganization plan Friday, and set a confirmation hearing for Dec. 3 in the U.S. Bankruptcy Court, District of Delaware.

Under the plan, noteholders, with $259 million in claims, will receive 100% recovery. For notes that suffered a default, the holders will obtain a cure on the default, have the maturity reinstated, receive compensation for any damages that incurred as a result of reliance on contractual provisions, and the note will be canceled and the holders will receive a promissory note with the same terms and conditions as the original note. The promissory note will not contain covenants.

General unsecured creditors, with $1 million in claims, will receive 100% recovery and will be paid in full. Seitel unsecured creditors, with $239,570 in claims, will receive 100% recovery and will be paid in full.

Equity holders will receive new shares, with the number adjusted to reflect a reverse split, plus warrants with a total exercise price of $40 million.

The funding guarantors, who will backstop the warrants, will receive additional warrants for 15% of the equity. So far they have committed to backstop the warrants to $30 million.

The equity holders' plan requires confirmation by Feb. 13, 2004.

Seitel is a Houston-based seismic information company.

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