December 21, 2020 13:55 ET | Source: SAExploration Holdings, Inc.
HOUSTON, Dec. 21, 2020 (GLOBE NEWSWIRE) — SAExploration Holdings, Inc. (“SAE” or the
“Company”) announced today that it has successfully completed its financial restructuring and emerged from
Chapter 11 as a private, non-SEC reporting company. As a result of its plan of reorganization, which received
broad support from its creditors, the Company has reduced its debt by approximately $74 million, net, thus
positioning the Company for future growth. During the course of its restructuring, SAE continued to maintain
global business as usual, preserving its strong relationships with its customers, vendors and employees for the
“We are very pleased to have completed this efficient and consensual reorganization, and we look forward to
working with our stakeholders and newly-appointed board members as a private company,” said Michael J.
Faust, CEO. “I would like to thank our customers, vendors, and our employees whose dedication, patience and
hard work have been exceptional throughout. Our significantly improved balance sheet and increased capital
will put us in an excellent position to compete, while providing the highest quality of service. Our focus on
safety and environmental stewardship will remain at the forefront of our business.”
A Special Committee of the Company’s Board of Directors that was formed in August 2019 to oversee an
internal investigation with respect to the previously disclosed SEC investigation of the Company was dissolved
on December 7, 2020.
Last month, the Company entered into a consent agreement with the SEC that resolves all allegations
pertaining to the Company with respect to the charges filed by the SEC in October. The joint motion filed by
the SEC and SAE in support of the consent agreement notes SAE’s cooperation, remediation and internal
investigation, and that:
• There is no allegation of continuing or ongoing misconduct by SAE
• Former SAE executives hid their fraud from the Board
• SAE has removed the former executives who were responsible for the misconduct
• SAE has implemented enhancements to its internal policies and procedures, including the addition of a
Chief Compliance Officer.
Pursuant the consent agreement, without admitting or denying the allegations in the SEC complaint, the
Company consented to the entry of a final judgment that permanently enjoins it from violating the sections of
the federal securities laws listed in the SEC complaint, but that does not impose any monetary penalty on the
Company. The final judgment was entered by the court on December 18, 2020.
New Capital Structure
Upon emergence from Chapter 11, SAE entered into a new $15.0 million first out term loan facility with certain
of its existing lenders, refinanced its prior credit facility with a new $20.5 million second out term loan facility
with the existing lenders, and eliminated $89.0 million of principal and interest with respect to its prior senior
loan facility and 6.0% Senior Secured Convertible Notes due 2023. All equity outstanding prior to the
reorganization was extinguished at emergence with new equity being issued to certain of the Company’s
New Board of Directors
The Company also announced its new Board of Directors, comprised of the following individuals:
• Kenneth M. Tubman, President of PPA Resources, will serve as Chairman of the Board of Directors
• Peter W. Cramer, Founder and Managing Partner of the Pc Advisory Group
• Marc Rowland, Founder and Senior Managing Director of IOG Capital, LP will serve as Audit Committee
• Zaki Selim, former President, Middle East & Asia, Schlumberger
• Michael J. Faust, President and CEO of the Company
Porter Hedges LLP acted as legal counsel and Imperial Capital, LLC and Winter Harbor LLC acted as financial
advisors to SAE in connection with its restructuring efforts.
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the ad hoc group of certain consenting
creditors in connection with the Chapter 11 cases.
SAE is an international oilfield services company offering a full range of vertically-integrated seismic data
acquisition, data processing and interpretation, and logistical support services throughout North America,
South America, Asia Pacific, Africa and the Middle East. In addition to the acquisition of 2D, 3D, time-lapse 4D
and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters,
SAE offers a full suite of data processing and interpretation services utilizing its proprietary, patent-protected
software, and also provides in-house logistical support services, such as program design, planning and
permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation,
and community relations. SAE operates crews around the world, performing major projects for its blue-chip
customer base, which includes major integrated oil companies, national oil companies and large independent
oil and gas exploration companies. With its global headquarters in Houston, Texas, SAE supports its operations
through a multi-national presence in the United States, United Kingdom, Canada, Peru, Colombia, Bolivia,
Malaysia, and Singapore. For more information, please visit SAE’s website at www.saexploration.com.