ION Geophysical enters forbearance with lender, majority of 8% noteholders over missed coupon

By Wendy Van Sickle

Columbus, Ohio, Jan. 14 – ION Geophysical Corp. announced it entered into forbearance agreements with the lender of its revolving credit agreement and holders of more than 79% of its 8% senior secured second priority notes due 2025, according to a news release on Friday.

ION said it entered into a forbearance and fifth amendment with PNC Bank, NA, under its revolving credit and security agreement dated Aug. 22, 2014 under which PNC has agreed to waive, through Feb. 15, a cross default that would have occurred under the credit agreement as ION has not paid the scheduled interest payment due on Dec. 15 on the 8% notes prior to the expiration of the 30-day grace period provided by the indenture.

Further ION said it had entered into agreements with holders of more than 79% of the 2025 notes to forbear until Feb. 15 from enforcing their rights and remedies arising from ION’s failure to make the Dec. 15 interest payment.

ION said it remains in discussions with PNC, the noteholders and holders of other debt regarding strategic alternatives to strengthen its financial position and maximize stakeholder value. The strategic alternatives include a sale or business combination transaction or sales of assets, any of which may be executed as part of an in-court or out-of-court restructuring process.

The company said it expects its fourth quarter of 2021 revenues to be about $10 million, an increase of 45% year over year.

ION Geophysical is a Houston-based provider of geophysical technology, services and solutions for the oil and gas industry.

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