Seitel's disclosure statement confirmed by court

By Jeff Pines

Washington, Feb. 5 - Seitel, Inc.'s third amended disclosure statement received court approval, according to a Feb. 5 order issued by a Delaware bankruptcy district judge.

Feb. 4 is the date of record for equity holders and claims-holders of the Houston-based company.

Ballots and objections are due by March 9. A confirmation hearing will be held March 18.

The plan has the support of the official committee of equity holders and Berkshire Hathaway Inc. and Ranch Capital LLC, its two largest creditors.

According to the plan, the reorganization addresses $300 million in claims.

The plan calls for unsecured creditors of the seismic data company to recover 100%. In fact, all creditors are supposed to recover 100% plus interest. In addition, there will be a $25 million exit revolver, a high-yield bond offering through a private placement of at least $180 million and a $75 million warrant offering to holders of the old stock.

Seitel filed for bankruptcy on July 25, 2003. It said it competes in an intensely competitive market with companies that have larger resources than it does.

In February 2002, the company reevaluated its accounting principles on revenue recognition under a Securities and Exchange Commission accounting bulletin. When Seitel did, it restated its earnings, which were greatly reduced, and caused its $255 million of senior unsecured notes to go into default.

The case number is 03-12227.

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