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SENECA FINANCIAL GROUP ASSISTS SEITEL IN BANKRUPTCY EMERGENCE Greenwich, CT, Fall 2004 -- Seitel, Inc., the Houston, TX-based provider of seismic data and related geophysical services to the North American oil and gas industry, has announced that its consensual Plan of Reorganization has gone effective. Seneca Financial Group, financial advisors to the Official Committee of Equity Security Holders, played a key role in the reorganization plan, arranging a $75 million equity rights offering and facilitating $193 million in private bond financing. Seitel filed for Chapter 11 protection on July 21, 2003. With the guidance of Seneca, a restructuring plan was confirmed by the U.S. Bankruptcy Court on March 18, 2004. Following the successful placement of the private bond offering on July 2, 2004, a necessary funding component of Seitel's reorganization plan, the company is on the path to successfully emerge from bankruptcy with the preservation of significant shareholder value. “We are pleased to have devised a plan that allows shareholders to retain more than 90 percent of the company and creditors to be paid in full,” said James Harris, president of Seneca Financial Group. “The marketplace validated our initial valuations and Seitel will be able to emerge from bankruptcy and allow its shareholders a continued stake in what we believe to be a solid company with a bright future. We believe in the management of the Company and this transaction should give them the flexibility to grow the Company.” Lawrence Gottlieb, partner at Kronish Lieb Weiner & Hellman, was
Counsel to the Official Committee of Equity Security Holders. |
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