2013-02-08 00:10:17 -
HOUSTON, TX - February 7, 2013 - Geokinetics Inc. (OTC: GEOK) (the "Company")
announced today that it was commencing a solicitation of votes for its pre-
packaged chapter 11 plan of reorganization from holders of the Company's 9.75%
senior secured notes due 2014 ("Senior Secured Notes"), Series B-1 Senior
Convertible Preferred Stock, par value $10.00 per share, and Series C-1 Senior
Preferred Stock, par value $10.00 per share (collectively, the "Senior Preferred
Stock"). Votes on the prepackaged plan of reorganization must be received by the
voting agent by 12:00 p.m. (prevailing Eastern Time) on March 8, 2013, unless
this deadline is extended. Copies of the Company's plan of reorganization and
solicitation and disclosure statement may be accessed at
www.GOKRestructuring.com. Parties seeking additional information about
the balloting process may contact GCG, the voting agent for the solicitation, at
(800) 761-8709.
Consistent with the previously announced restructuring support agreement,
holders of more than 70% in aggregate principal amount of its Senior Secured
Notes and holders of more than two-thirds of the Senior Preferred Stock have
agreed to vote in favor of the chapter 11 plan. If, at the end of the
solicitation period, the requisite number and amount of holders of Senior
Secured Notes and Senior Preferred Stock vote in favor of the plan as required
by the Bankruptcy Code, the Company intends to seek to implement its
recapitalization plan through an expedited chapter 11 bankruptcy process. At
the conclusion of the chapter 11 bankruptcy process, the holders of the Senior
Secured Notes would become the stockholders of the reorganized Company, with the
interests of current stockholders being cancelled. The plan of reorganization
envisions that unsecured creditors of the Company will be paid in full either in
the ordinary course of business or at the conclusion of the chapter 11 cases.
Importantly, the proposed balance sheet reorganization is not expected to have
an impact on the Company's operations.
As part of the restructuring process, the Company expects to enter into a new
credit facility to provide liquidity for operations after the restructuring.
During the restructuring process, subject to conditions in the restructuring
support agreement, the Company will seek authority from the bankruptcy court to
obtain up to $25 million of debtor in possession financing provided by certain
holders of the Senior Secured Notes and fully backstopped by two of the largest
holders of Senior Secured Notes. This debtor in possession financing will fund
certain of the Company's operations during the chapter 11 process and will be
converted into common stock of the reorganized Company on the effective date of
the chapter 11 plan.
The Company's emergence from chapter 11 will be subject to, among other things,
bankruptcy court approval of the solicitation and disclosure statement, exit
financing and confirmation of the plan of reorganization.
Geokinetics Inc. is a leading provider of seismic data acquisition, seismic data
processing services and multi-client seismic data to the oil and gas industry
worldwide. Headquartered in Houston, Texas, Geokinetics is the largest Western
contractor acquiring seismic data onshore and in transition zones in oil and gas
basins around the world. Geokinetics has the crews, experience and capacity to
provide cost-effective world class data to its international and North American
clients. For more information on Geokinetics, visit
www.geokinetics.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements include, without
limitation, statements about the terms of the solicitation and disclosure
statement, the terms of a proposed plan of restructuring, the Company's
operations and business during and after the restructuring process, the
Company's intent to file voluntary petitions for protection under chapter 11 of
the U.S. Code in the United States Bankruptcy Court for the District of Delaware
to implement such plan of restructuring, expected timing of the completion of
the transactions contemplated by the solicitation and disclosure statement and
other aspects of the proposed restructuring. The Company has based these
forward-looking statements on its current expectations and projections about
future events based upon knowledge of facts as of the date of this report and
its assumptions about future events. These forward-looking statements are
subject to various risks and uncertainties that may be outside the Company's
control, including whether the requisite parties are able to agree on definitive
terms of agreements necessary to implement a restructuring plan and all
requisite approvals are received. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Contact:
Gary L. Pittman
Chief Financial Officer
(713) 850-7600
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Geokinetics Inc. via Thomson Reuters ONE
[HUG#1676607]
