HOUSTON, TEXAS - December 17, 2012 - Geokinetics Inc. (NYSE MKT: GOK) announced today that the Company elected not to make the approximately $14.6 million interest payment on its 9.75% senior secured notes due 2014 (the "Notes") due on December 15, 2012 and to operate under the 30-day grace period provided for in the indenture governing the Notes.  As previously discussed in its periodic filings, the Company did not anticipate making its December 15, 2012 interest payment on the Notes if it determined that making such payment would place its ongoing commercial operations at risk.  The Company will reevaluate its decision in this respect during the 30-day grace period to determine if it has sufficient funds to make the required interest payment.  

As previously disclosed, the Company and its financial and legal advisors entered into discussions with certain of its stakeholders regarding a restructuring of the Company's capital structure.  The discussions with the Noteholders ceased with the termination of a related confidentiality agreement on December 14, 2012, which has not been extended.  In the event that such a restructuring can be agreed upon, it is likely that it will be implemented in an in-court restructuring.   There can be no assurances that the terms of a restructuring plan will be agreed upon by the requisite parties, and if no such agreement is reached, the Company will likely be required to implement an in-court restructuring without a pre-negotiated plan.  It is currently anticipated that any such restructuring will not involve any sale of assets or other similar capital raising but would be a balance sheet restructuring designed to minimize the impact on operations.  The Company believes that such a restructuring will preserve its capacity to continue its operations substantially as previously conducted and to continue its financial arrangements with its vendors and suppliers such that, after the implementation of such restructuring, it will emerge as a stronger financial company.

The Company is concurrently filing a Current Report on Form 8-K, dated today, containing additional details concerning its election not to make the December 15, 2012 interest payment on the Notes on the due date and the status of its negotiations with its various stakeholders.  Please refer to that report for additional information.

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 http://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 anticipated terms of a plan of restructuring and the Company's negotiations with certain holders of its notes, holders of its preferred stock and its other lenders.  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 the terms of a restructuring plan. 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#1665505
Geokinetics, Inc. (AMEX:GOK)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Geokinetics, Inc. Charts.
Geokinetics, Inc. (AMEX:GOK)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Geokinetics, Inc. Charts.