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Subsequent Events
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events
SUBSEQUENT EVENTS
The Company is a wholly-owned subsidiary of Seitel Holdings, Inc. (“Holdings”). Holdings is an investment entity in which ValueAct Capital Master Fund, L.P. (“ValueAct”) owned a majority interest and Centerbridge Capital Partners II, L.P. and Centerbridge Capital Partners SBS II, L.P. (together with Centerbridge Capital Partners II, L.P., “Centerbridge”) owned a minority interest. On July 17, 2018, Holdings, ValueAct and Centerbridge entered into a Securities Purchase Agreement through which Centerbridge exercised its rights under the Amended and Restated Securities Holders Agreement, dated May 23, 2011 to acquire all of ValueAct’s ownership interest in Holdings (previously defined as the “July 2018 Transaction”). The July 2018 Transaction resulted in a change of control at the Holdings level and Centerbridge now owns approximately 99.7% of the issued and outstanding shares of Holdings. The July 2018 Transaction will be accounted for as a business combination using the acquisition method in which a new basis of accounting at fair value is established in the acquirer’s financial statements for the assets acquired and liabilities assumed. The Company is currently evaluating whether the acquirer’s new accounting basis at fair value will be pushed-down to its subsequent financial statements.
Pursuant to Chief Executive Officer Mr. Robert D. Monson’s employment agreement, Mr. Monson was entitled to certain severance payments and benefits in the event his employment was terminated without cause, voluntarily or involuntarily after the July 2018 Transaction, including a cash severance payment in an amount equal to three times the sum of his base salary plus target bonus (the “Cash Payment”). On July 19, 2018, the Company entered into a letter agreement with Mr. Monson whereby the Company agreed to pay Mr. Monson an amount equal to the sum of the Cash Payment and a gross up for certain taxes, and in return Mr. Monson irrevocably waived certain rights and claims, including the right to receive additional severance payments and benefits under his employment agreement upon a future termination of his employment. As a result, the Company paid Mr. Monson $5.5 million in July 2018 that will be reflected as an expense of the Company in its statement of operations for the quarter ending September 30, 2018.