Speaking to analysts earlier this month, PGS CEO Svein Rennemo described 2002 as a “challenging and turbulent year” with continued over-capacity in seismics and the termination of the attempted merger with Veritas. Rennemo noted an “unfavorable trading environment” with a 6% decline in seismic sq. km. and a 12% streamer count reduction.
Rennemo stated that PGS was involved in ongoing discussions with its creditor banks and bondholders to “realign its debt burden to debt capacity”. Rennemo added that “legal protection may be necessary and effective for full creditor alignment.”
Immediately following the conference call, PGS’ American Depositary Shares were suspended from the New York Stock Exchange. These have been below the NYSE’s minimum security price over a consecutive 30 trading day period. In view of PGS’ earnings announcement, the Company has now also fallen below NYSE continued listing standards.
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