Seitel reorganization plan gets court's confirmation

By Jeff Pines

Washington, March 18 - Seitel Inc.'s reorganization plan received Delaware bankruptcy court confirmation March 18 after receiving virtually unanimous approval from the two classes eligible to vote for the plan.

All pre-petition creditors will be paid in full in cash. Houston-based Seitel estimates all of its creditors should be paid by mid-June.

It will get the money to pay off the creditors by selling common stock warrants, bonds and using $35 million of cash and cash equivalents.

Holders of the existing common stock will receive common stock and warrants in the reorganized company. Each warrant will represent 4.93 shares with a 60 cents per share exercise price.

If the warrants are fully exercised, the company would get $75 million, which it would use to help pay its creditors. HBV Mellon Alternative Strategies LLC, which controls a 9.28% common stock stake, has agreed to buy any warrants other shareholders do not.

In addition, Seitel plans to sell $180 million of 10-year senior unsecured notes to institutional investors.

The company also has a $30 million credit facility with Wells Fargo Foothill, Inc.

Seitel, a seismic data company, filed for bankruptcy on July 25, 2003. Its Chapter 11 case number is 03-12227.

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