Seitel Updates Reorganization Proceedings
05 Novembro 2003 - 1:01PM
PR Newswire (US)
Seitel Updates Reorganization Proceedings HOUSTON, Nov. 5
/PRNewswire-FirstCall/ -- Seitel, Inc. (BULLETIN BOARD: SEIEQ)
("Seitel" or the "Company") announced that the Bankruptcy Court for
the District of Delaware conducted hearings on November 3, 2003, as
a result of which, the Bankruptcy Court is expected to enter orders
providing that (i) the voting date on the Company's proposed plan
of reorganization will be extended by six days so that it will now
expire at 5:00 PM EST on Thursday, November 13, 2003; (ii) the
timetable for the confirmation hearing on the Seitel plan will
remain unchanged, with such hearing scheduled to begin on November
17, 2003; and (iii) the equity committee is authorized to file an
alternative plan if it elects to do so. Seitel's plan will be
funded by Berkshire Hathaway Inc. and Ranch Capital L.L.C. which
are committed to provide approximately $195 million in cash in
exchange for 100% of the stock of reorganized Seitel. Under the
Seitel plan all administrative, tax and secured claims, and all
unsecured claims (other than the $255 million of notes held by
Berkshire) and owing by Seitel's principal operating subsidiaries
will be paid in full in cash on the effective date. All allowed
claims owing by Seitel, Inc. and its non-operating subsidiaries
will be paid 25% of the value of such claims. In addition, the
Seitel plan provides for the distribution of approximately $10.2
million (equivalent to $.40 per existing share of common stock) to
holders of equity interests under certain conditions, including the
affirmative vote of the shareholders to accept the Seitel plan. If
shareholders vote to reject the plan, the $10.2 million will not be
distributed. Seitel encourages all holders of claims and equity
interest to vote to accept the Seitel plan by returning their
ballots by the extended voting deadline, November 13, 2003 at 5:00
PM EST. Questions regarding voting or voting procedures for claim
holders may be directed to Delaware Claims Agency (800-838-6773,
attention: Joe King). Questions regarding voting or voting
procedures for holders of equity interest may be directed to
Innisfree M&A Incorporated (877-750-2689 for individuals /
212-750-5833 for banks and brokers). Seitel markets its proprietary
seismic information to more than 400 petroleum companies, licensing
data from its library and creating new seismic surveys under
multi-client projects. Berkshire Hathaway Inc. is a holding company
owning subsidiaries engaged in a number of diverse business
activities, the most important of which is the property and
casualty insurance business conducted on both a direct and
reinsurance basis through a number of subsidiaries. Ranch Capital
L.L.C. is a San Diego based investment firm formed in October 2002
by Lawrence S. Hershfield and Randall L. Jensen. Mr. Hershfield
previously worked with Berkshire when he was employed by Leucadia
National Corporation and ran Finova Group on behalf of Berkadia
LLC, a joint venture of Berkshire and Leucadia. Information
Regarding Forward-Looking Statements This 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. Statements contained in this release about Seitel's
future outlook, prospects and plans, including those that express
belief, expectation, estimates or intentions, as well as those that
are not statements of historical fact, are forward looking. The
words "proposed", "anticipates", "anticipated", "will", "would",
"should", "estimates" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements
represent Seitel's reasonable belief and are based on Seitel's
current expectations and assumptions with respect to future events.
While Seitel believes its expectations and assumptions are
reasonable, they involve risks and uncertainties beyond Seitel's
control that could cause the actual results or outcome to differ
materially from the expected results or outcome. Such factors
include the ability of the Company to continue as a going concern;
the Company's ability to obtain court approval with respect to
motions in the Chapter 11 proceeding prosecuted by it from time to
time; the impact of litigation on the Company and in any
distribution to creditors or equity holders of the Company; the
delay or inability of the Company to complete and/or consummate its
proposed plan of reorganization; risks associated with third
parties seeking and obtaining court approval to terminate or
shorten the exclusivity period for the Company to propose and
confirm one or more plans of reorganization, for the appointment of
a Chapter 11 trustee or to convert the Company's Chapter 11 case to
a Chapter 7 case; the ability of the Company to obtain and maintain
normal terms with vendors and service providers; the Company's
ability to maintain contracts that are critical to its operations;
the potential adverse impact of the Chapter 11 cases on the
Company's liquidity or results of operations and other risks
associated with operating a business in Chapter 11; any significant
change in the oil and gas industry or the economy generally;
changes in the exploration budgets of the Company's seismic data
and related services customers; actual customer demand for the
Company's seismic data and related services; the timing and extent
of changes in commodity prices for natural gas; crude oil and
condensate and natural gas liquids and conditions in the capital
markets and equity markets during the periods covered by the
forward-looking statements; the effect on our reported operating
results and stock price as a result of the Company's restatement of
financial statements; the results or settlement of litigation
regarding the Company or its assets; the Company's non-compliance
with its debt covenants; adverse actions which may be taken by the
Company's creditors; the level of the Company's cash generated from
operations; the Company's ability to obtain alternative debt or
equity financing on satisfactory terms if internally generated
funds are insufficient to fund its capital needs and the lack of
any strategic disposition, acquisition or joint venture involving
the Company's businesses and assets; and other risks and
uncertainties identified from time to time in the Company's reports
filed with the Securities and Exchange Commission, including its
most recent Annual Report on Form 10-K, copies of which may be
obtained form the Company without charge. These forward-looking
statements speak only as of the date hereof and Seitel disclaims
any duty to update these statements other than as required by law.
Similarly, these and other factors, including the terms of any
reorganization plan ultimately confirmed, can affect the value of
the Company's various pre-petition liabilities, common stock and/or
other equity securities. As a result, no assurance can be given as
to what values, if any, ultimately will be ascribed in the
bankruptcy proceedings to each of these constituencies.
Accordingly, the Company urges that the appropriate caution be
exercised with respect to existing and future investments in any of
these liabilities and/or securities. DATASOURCE: Seitel, Inc.
CONTACT: Larry Lenig of Seitel, Inc., +1-713-881-2812 Web site:
http://www.seitel-inc.com/
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