IO - ION Geophysical Corporation Files For Bankruptcy Protection - Sell

• Company files for bankruptcy protection to restructure almost $150 million in debt after a multi-month review of strategic alternatives failed to yield tangible results.
• Under the terms of the restructuring support agreement, holders of the company's new second lien notes due 2025 will own 99.75% of the new equity.
• Current equityholders will be allocated a measly 0.25% of the restructured company, still subject to dilution by the management incentive plan.
• Downside in the common shares calculates to 98%. Unfortunately, sky-high borrowing rates, elevated margin requirements and some uncertainties related to the ongoing marketing process are likely to keep investors sidelined.
• Existing equityholders should sell their positions and move on ahead of the shares' expected delisting from the NYSE next week.

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