Seitel (NASDAQ:SEIEQ)
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Seitel Updates Bankruptcy Person; Proposes Auction Process; Announces Settlement
of Class Action Litigation
HOUSTON, Dec. 3 /PRNewswire-FirstCall/ -- Seitel, Inc. (BULLETIN BOARD: SEIEQ)
("Seitel" or the "Company") announced today that it filed a motion with the
Bankruptcy Court amending its plan of reorganization to include an auction
process designed to guarantee maximum recoveries for creditors and shareholders.
The motion, filed in support of Seitel's confirmation hearing, will be heard by
the Court on Wednesday, December 10, 2003.
Under the motion, if approved, competitive bids will be solicited for a period
of approximately sixty days after which the reorganization plan for the Company
would be considered for confirmation.
In support of the auction process and to assure that all Seitel creditors and
shareholders will, in all events, recover at least as much from the auction as
presently provided under the Company's pending plan of reorganization, Seitel
also announced that Berkshire Hathaway Inc. has agreed to and will submit an
initial bid in the amount of approximately $280 million. Such amount will
provide cash distributions equal to the amounts that would be made under the
Company's presently pending plan of reorganization, including $10.15 million
that would be distributed to shareholders.
In anticipation of including the auction process as described above, the
Bankruptcy Court deferred to a later date confirmation of the Company's
presently pending plan. In addition, the Bankruptcy Court deferred action on
the disclosure statement filed by the Equity Committee with respect to its
proposed alternative plan.
Final procedures for becoming a qualified bidder and submitting a bid in the
auction are expected to be approved at next week's hearing and will be available
publicly thereafter.
In addition, Seitel announced that it has reached agreement to settle class
action litigation initiated by certain shareholders in April 2002. Under the
settlement, which will become effective upon the satisfaction of certain
conditions, including approval by the Bankruptcy Court and the District Court of
the Southern District of Texas, Seitel will pay approximately $980,000 to
resolve all claims against it and all of the individual defendants in the case.
All other costs related to the settlement will be covered by Seitel's insurance
carrier.
Seitel markets its proprietary seismic information/technology to more than 400
petroleum companies, licensing data from its library and creating new seismic
surveys under multi-client projects. Statements in this release about the
future outlook related to Seitel involve known and unknown risks and
uncertainties, which may cause the Company's actual results to differ materially
from expected results. While the Company believes its forecasting assumptions
are reasonable, there are factors that are hard to predict and influenced by
economic and other conditions that are beyond the Company's control. These risk
factors are detailed in Seitel's filings with the Securities and Exchange
Commission, including its most recent Form 10-K Annual Report, a copy of which
may be obtained from the Company without charge.
DATASOURCE: Seitel, Inc.
CONTACT: Larry Lenig or Len Goldstein, both of Seitel, Inc.,
+1-713-881-8900
Web site: http://www.seitel-inc.com/