French geophysical services company CGG announced Thursday that is looking to commence discussions with stakeholders in order to achieve a financial restructuring.
“With a market environment expected to remain similar in 2017, and to continue to weigh on its revenues, the company considers that the group's debt level is too high,” CGG said in a company statement.
The objective of the proposed restructuring would be to provide the company with a level of indebtedness and cost of debt that is substantially reduced and sustainably adapted to its revenues, CGG stated.
“To that end, the company will make proposals to its creditors and to its shareholders. The market will be informed in due time of the outcome of these discussions,” CGG said.
Net debt is expected to amount to around $2.315 billion as at December 31, according to CGG, which is in line with the target to be below $2.4 billion at the end of 2016.
“After the effective execution of our industrial Transformation Plan and in market conditions that are expected to remain very difficult, our priority is now to improve our balance sheet and quickly restore financial flexibility to the company,” CGG CEO Jean-Georges Malcor said.
“At the same time, we remain fully committed to our commercial efforts, customer satisfaction, operational excellence, strict cost management and preservation of our liquidity level,” he added.
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