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Baker Botts Advises Global Geophysical Services In Successful, Complex In-Court Restructuring Despite Sharp Decline in Oil and gas Prices


DALLAS, March 31, 2015 -- On February 9, 2015, the business day following confirmation of its chapter 11 plan of reorganization (Plan) by the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division, Global Geophysical Services, Inc. (GGS), a geophysical services company with operations in North America, Latin America, the Middle East and Africa, exited bankruptcy less than one year after filing for chapter 11 protection. The restructuring resulted in a significant reduction of the Company’s indebtedness. Operations around the world were maintained without interruption during the case. In achieving the successful restructuring, Baker Botts utilized a number of restructuring tools only available to a debtor in an in-court restructuring solution, including:

  • Prevailing in a contested priming debtor-in-possession (DIP) interim loan funded by an ad hoc group of existing GGS bondholders early in the case
  • Initiating cross-border proceedings in Colombia to preserve assets from local creditor enforcement action
  • Negotiating and closing a rights-offering backstop and debt conversion agreement with the ad hoc group of DIP lenders—designed to right-size the balance sheet of the Company in a challenging commodity price environment for companies in the energy sector. The rights offering provided accredited holders of bonds and other financial claims the opportunity to purchase at a discount to the Plan set-up value equity in a new parent holding company created under the Plan and organized as a limited liability company
  • Utilizing as negotiating leverage a debtor’s ability (i) to reject out-of-market contracts and (ii) to challenge pre-bankruptcy asset transfers that may be viewed as harming creditors, Baker Botts also assisted the Company in its negotiation of more favorable terms for key revenue and supplier contracts to improve EBITDA on a go-forward basis

During the course of the chapter 11 proceedings, Baker Botts also counseled and assisted the Company in a variety of matters including restatements of the Company’s historical financial statements and responding to a related SEC investigation, various SEC reporting matters and ultimate suspension of the Company’s periodic SEC reporting obligations. Moreover, Baker Botts assisted the Company in negotiating and closing new exit credit facilities—a first lien term and revolving facility and a second lien term facility—during the downturn in oil and gas prices. With the successful restructuring of the Company, Baker Botts has some of the most recent and relevant restructuring experience in the energy sector.

Baker Botts Lawyers involved: Luckey McDowell (Partner, Dallas); Jim Prince (Partner, Dallas); Omar Alaniz (Special Counsel, Dallas), Meggie Gilstrap (Associate, Dallas); Joe Poff (Partner, Houston); Courtney York (Partner, Dallas); Bryan Henderson (Associate, Dallas); Bill Stutts (Partner, Austin); Andrew Thomison (Senior Associate, Houston); Jenny Zhang (Associate, New York); Tim Durst (Partner, Dallas); Tom O’Brien (Partner, Dallas); Rob Fowler (Partner, Houston); Josh Mandell (Partner, Dallas); Paul Luther (Partner, Washington, DC); Ginger Faulk (Partner, Washington, DC).


Baker Botts is an international law firm of approximately 650 lawyers practicing throughout a network of offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy, technology, and life sciences sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit

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