IO - ION Geophysical Corporation: Pre-Packaged Bankruptcy Likely After Missed Debt Payments

• ION suffers from ongoing weak seismic data customer demand in its core offshore oil and gas segment.
• Last week, the company missed an aggregate $12.3 million in bond principal and interest payments ahead of a likely comprehensive debt restructuring.
• Language used in the recent 8-K hints at a pre-packaged chapter 11 filing.
• Should the company indeed file for bankruptcy, existing equity holders are unlikely to receive a meaningful recovery given the sheer amount of debt ranking ahead of them.
• Investors should consider selling existing positions and moving on. Even a short position could still yield decent gains.

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