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JUDGE PERMITS SHAREHOLDERS OF SEITEL TO PROPOSE ALTERNATIVE RESTRUCTURING PLAN IN BANKRUPTCY CASE -- Shareholders Allowed To Change Previously Submitted Votes on Future Plan Greenwich, CT, November 4, 2003 -- In a rare decision, a U.S. Bankruptcy Court in Delaware terminated Seitel Inc.’s right to exclusively propose restructuring plans in the Company’s Chapter 11 bankruptcy proceeding. After listening to Lawrence Gottlieb from Kronish Lieb Weiner & Hellman, counsel to the Official Committee of Equity Security Holders, Judge Peter Walsh ruled that shareholders had a right to propose their own plan. Currently, Seneca Financial Group is advising the Committee on the structure of such a plan. Under the Committee’s plan, shareholders will have the opportunity to participate in an offering to inject new equity into Seitel, the Houston-based seismic data company, and preserve their stake in the Company. This will allow the debt, held by Berkshire Hathaway, to be reinstated and paid down as it comes due. While the voting on Berkshire Hathaway’s plan is currently underway and was set to conclude as of November 7th, the Judge will now allow individuals to vote on the Company’s plan through November 13th and offer those who already voted the ability to change their vote. “Before today, shareholders had no choice but to accept the financial terms of the Company’s plan. This would have meant that each shareholder would have received, at most, $.40 for each share of stock,” said James Harris, president of Seneca Financial Group. “With the Judge’s decision, we can now offer a plan that reflects the full value that still exists in Seitel and offers shareholders a continued stake in what we believe to be a solid company with a bright future. This plan is being supported by many large sophisticated investors who are willing to commit additional funds to see a strong, liquid Seitel emerge from bankruptcy.” As the official Financial Advisor to the Committee, Seneca Financial Group will have the opportunity to convince the Court that Seitel continues to offer significant shareholder value. The hearing on valuation will take place on December 3, 2003. Shareholders who would like to change their vote or need more information should immediately contact their brokers. They can change the master ballot and send a revised version or letter to Innisfree. Brokers who need information or ballots can call Innisfree at 212-750-5833. Beneficial owners can also call Innisfree directly at 877-750-2689 or contact Eric Haber at Kronish Lieb Weiner & Hellman at 212-479-6144. Press Release Index |
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