Seitel Fell 51% Last Week - TheStreet

Seitel

(SEI)

shares were cut in half last week after the company said it was out of compliance with financial covenants and pulled a proposed common stock offering. The seismic data provider disclosed in a federal filing that decreased first-quarter revenue and higher interest expense brought it out of compliance with certain loan agreements. Senior noteholders later said they would waive the covenants, but a planned $20 million sale of common shares was canceled after the company's share price tumbled on the non-compliance news. The company now faces numerous shareholder lawsuits.