Seitel fights for survival

Troubled seismic broker Seitel was fighting for survival when a potential ‘white knight’ appeared!

Discussions between Seitel Inc. and some of its creditors broke down last month. Holders of unsecured notes have filed for bankruptcy against Seitel and its subsidiaries. Since the filing, Ranch Capital LLC, a California based private equity firm has purchased all of the senior notes originally held by the filing parties. Seitel is in discussion with Ranch regarding a ‘consensual restructuring’ of its capital position, including the senior notes. Ranch was not involved in the recent bankruptcy filing. Seitel said that it has sufficient liquidity to operate its business. Early this month Seitel agreed to settle an SEC lawsuit alleging reporting violations, without admitting or denying the allegations.

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