IO - Ion Geophysical commences voluntary Chapter 11 process

Ion Geophysical (NYSE:IO) said it filed for voluntary Chapter 11 relief in U.S. Bankruptcy Court for the Southern District of Texas to explore a value-maximizing transaction that will strengthen the company's balance sheet and position ION for sustained future success. Pursuant to the Chapter 11 filing, ION entered into a restructuring support agreement with the lenders under its credit agreement and holders of ~80% of its 2025 notes. Th plan of reorganization premised on either debt-for-equity exchange paired with potential sale of certain assets or sale of substantially all its assets. Per the terms of the RSA, ION will continue ongoing solicitation of interest from third parties in potential sale transactions. ION has also secured $2.5M in debtor-in-possession financing that, along with normal operating cash flows, should support operations during the process. Earlier, ION Geophysical likely faces a pre-packaged bankruptcy, Henrik Alex writes in a bearish analysis published in December on

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Ion Geophysical commences voluntary Chapter 11 process