Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Geokinetics Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: March 26, 2013
Key Contacts
Back
Geokinetics, a provider of seismic data, has filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code in Wilmington, Delaware. The voluntary bankruptcy will help the company accomplish its previously announced financial restructuring.
The Houston-based corporation listed $12 million in assets and $351 million in liabilities. However, an agreement with the holders of more than 70 percent of its secured notes will enable Geokinetics to convert roughly $300 million of debt to equity. The company has also secured $25 million in debtor-in-possession financing from senior note holders to facilitate the bankruptcy process.
Furthermore, the company has submitted a prepackaged bankruptcy plan – which is subject to court approval – that will ensure that all unsecured creditors are paid in full once the plan is confirmed. The company said it has received overwhelming support from its stakeholders, and expects the bankruptcy court to approve the plan within 45 days.
“Today we have taken a decisive step to strengthen our balance sheet and emerge a stronger company that is well-positioned for growth on the horizon in all three product lines and enhances profitability, while maintaining our commitments to our customers, employees, and vendors,” said David Crowley, president and CEO of Geokinetics.
Geokinetics decided to restructure its company after it missed a $14.6 million interest payment due December 15 on the secured notes.
The company also noted that it plans to continue normal business operations and does not expect the restructuring to interrupt any aspect of its operations. It has petitioned the bankruptcy court to approve the payment of wages, salaries, and other employee benefits, as well as payments to certain critical vendors, including foreign vendors.
The corporation is currently the largest Western contractor that acquires and processes seismic data and provides multi-client seismic data to the oil and gas industry worldwide.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.