The financial restructuring plan is based (amongst others):
(i) on the equitization of around $1.95bn in debt, which represents more than 20x the current market capitalization, and
(ii) on the issuance of new shares, allowing an injection of nearly $0.3bn of new liquidity into the Group, which represents more than 3x the current market capitalization.
Consequently, the financial restructuring will lead to a very significant dilution for existing CGG shareholders.
In practice, the ownership percentages of existing shareholders would range between 3.1% and 21.9% if they participate in the rights issue and exercise their #1 and #2 warrants. The lower range assumes that existing shareholders decide (i) not to participate in the rights issue with PSR that is open to them and (ii) not to reinvest in shares the proceeds from the sale of #1Warrants or the PSR to which they are entitled.