ION announces agreement for further forbearance extensions related to both the first and second lien debt

Rhea-AI Summary

ION Geophysical Corporation (NYSE:IO) announced an extension of its forbearance agreement with lenders until April 10, 2022. The company has also reached an agreement with over 79% of holders of its 2025 Notes for continued forbearance. These measures aim to strengthen ION's financial position while exploring strategic alternatives such as business combinations or asset sales. ION is actively engaged in discussions with lenders regarding restructuring options.

Positive

• Extended forbearance agreement provides temporary relief until April 10, 2022.
• Engagement with lenders and stakeholders indicating proactive measures for financial stability.

Negative

• Ongoing discussions for restructuring indicate potential financial instability.
• Dependency on forbearance agreements suggests underlying challenges in financial health.

HOUSTON, April 05, 2022 (GLOBE NEWSWIRE) -- ION Geophysical Corporation (NYSE:IO) announced today that it has entered into a Second Amendment to the Second Forbearance extension with the lenders under its Seventh Amendment to the Credit Agreement dated March 8, 2022, pursuant to which the lenders have agreed to extend the current forbearance through April 10, 2022. ION also announced that it had entered into Amendment No. 3 to the Forbearance Agreement with holders of more than 79% of its 2025 Notes to continue their forbearance through April 10, 2022. The forbearances are subject to the terms and conditions of the relevant agreements, which are described in more detail in our current report on Form 8-K filed with the SEC.

ION remains in continuing discussions with its lenders and the holders of its 2025 Notes and other indebtedness regarding various strategic alternatives to strengthen its financial position and maximize stakeholder value. These strategic alternatives include, among others, 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.

About ION

Leveraging innovative technologies, ION delivers powerful data-driven decision-making to offshore energy and maritime operations markets, enabling clients to optimize investments and results through access to our data, software and distinctive analytics. Learn more at iongeo.com.

The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased demand; changes in oil prices; agreements made or adhered to by members of OPEC and other oil producing countries to maintain production levels; the COVID-19 pandemic; the ultimate benefits of our completed restructuring transactions; political, execution, regulatory, and currency risks; the outcome or changes, if any, of our consideration of various strategic alternatives; and the impact to our liquidity in the current uncertain macroeconomic environment, including the war in Ukraine. For additional information regarding these various risks and uncertainties, see our Form 10-K for the year ended December 31, 2020, filed on February 12, 2021, and our Forms 10-Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021, filed on May 6, 2021, August 12, 2021, and November 3, 2021, respectively. Additional risk factors, which could affect actual results, are disclosed by the Company in its filings with the Securities and Exchange Commission (SEC), including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.

 

FAQ

What does the forbearance extension mean for ION Geophysical Corporation?

The forbearance extension until April 10, 2022, offers ION temporary relief from fulfilling certain financial obligations.

How is ION Geophysical exploring its financial options?

ION is discussing strategic alternatives with lenders, which may include asset sales or business combinations.

What percentage of 2025 Notes holders agreed to the forbearance?

More than 79% of the holders of ION's 2025 Notes have agreed to the forbearance.

What challenges does ION Geophysical face in the current economic environment?

ION faces challenges related to financial instability, potential restructuring, and impacts from external factors like oil prices and geopolitical tensions.