Geokinetics Inc. announced that the Company and its domestic subsidiaries have successfully emerged from chapter 11 protection and the Company's second modified joint plan of reorganization (the "Plan") has become effective.  David J. Crowley, the President and Chief Executive Officer of the Company, said, "On behalf of more than 4,000 fellow employees, operating in over 10 countries across the globe, I am delighted to announce Geokinetics' emergence from chapter 11. With the combination of a significantly de-levered balance sheet and the support of our new stakeholders I am optimistic about the prospects for our Company.  I am particularly encouraged by the support that our new stakeholders have already demonstrated through their $25 million investment in new equity capital.  Our ability to compress the timeline for restructuring and limit the effect on our product lines was made possible by the patience and trust we received from our valued clients, the teamwork and collaboration with our key suppliers, and the dedication and professionalism of our employees. Our future at Geokinetics looks very bright."
 
As provided under the Plan, the Company's $50 million secured credit facility was repaid in full, the $300 million (plus accrued and unpaid interest) of the Company's senior secured notes was converted into a new class of common stock of the reorganized Company and allowed general unsecured claims were either paid in full upon the effectiveness of the Plan or will be paid in full in the ordinary course of business.  In addition, the outstanding borrowings under the Company's $25 million debtor-in-possession credit facility provided by certain of the Company's new stakeholders were repaid with shares of the new class of common stock, as noted above.  The previously existing class of common stock of the Company was canceled. 
 
In connection with its emergence from chapter 11, the Company entered into a $75 million senior secured asset-based revolving credit facility with Wells Fargo Bank, National Association.  The proceeds of the initial borrowings under the new credit facility were used to make certain distributions as provided in the Plan.  

Akin Gump Strauss Hauer & Feld LLP is serving as the Company's legal advisor and Rothschild Inc. is serving as the Company's financial advisor.

Previously reported on ABL Advisor:

Geokinetics Files Voluntary Plan of Reorganization, Receives Commitment for $25MM DIP