CGG is neither going bankrupt nor insolvent. The US chapter 11 and French Sauvegarde procedures are designed to allow companies to restructure their debt with minimal disruption to their business, while protecting the value of their assets.
Numerous companies have taken this path to efficiently achieve a debt restructuring process. During this time, we will continue normal day-to-day operations and meet our client commitments as usual.
If the Group is unable to implement the financial restructuring plan approved by the Group’s main creditors, it could go into receivership which means it could run the medium-term risk of being dismantled, for example in the case of compulsory liquidation procedures under different jurisdictions.
If such procedures were to be implemented, shareholders could find themselves in a position where they lose their entire investment in the Group.
At the same time, our creditors or at least some of them may have reduced prospects for recovering their claims.