Ion Geophysical Corp., which develops seismic-mapping software and digital-imaging technology for offshore oil-drilling companies, has filed for chapter 11 protection with plans to hand control to junior bondholders, WSJ Pro Bankruptcy reported. Houston-based Ion said cost-cutting measures that clients implemented during the early months of the COVID-19 pandemic have remained in place even as energy markets have recovered, hurting its business. Oil-and-gas clients often view Ion’s exploration services and data offerings as discretionary, spending less when budgets are cut, the company said. Ion said that it has entered into a restructuring-support agreement for bondholders owed roughly $124 million in principal and interest to convert that debt to equity in the reorganized business that emerges from chapter 11, according to court papers filed Tuesday in the U.S. Bankruptcy Court in Houston. While the restructuring proceeds in bankruptcy court, Ion said it would canvass the market and seek higher bids for the potential sale of its assets. The company, which must get bankruptcy-court approval for the sale process, has proposed a June 2 bid deadline, court papers said.
