The U.S. District Personal bankruptcy Court for the Southern District of New York. REUTERS/Brendan McDermid

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  • ION aims to both sell property or change equity to lenders
  • Lingering pandemic consequences led to revenue drop

(Reuters) – Offshore electricity technology products and services company ION Geophysical Company on Wednesday secured non permanent court docket approval to entry a loan to fund functions during its individual bankruptcy.

U.S. Personal bankruptcy Decide Marvin Isgur in Houston authorized on an interim basis ION’s request to tap a $2.5 million bank loan all through its initial court listening to because submitting for Chapter 11 safety on Tuesday. Isgur will think about last acceptance of the mortgage on May perhaps 9.

The Houston-dependent publicly traded business, which has $139 million in credit card debt, has lined up a prearranged restructuring technique that allows it to either examine asset gross sales or reorganize by placing a team of junior collectors in command of the enterprise and spending senior lenders in complete.

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ION, which supplies seismic imaging and information companies to offshore power organizations, blamed the lingering effects of the drop in electrical power costs prompted by the COVID-19 pandemic for its economical difficulties. While costs improved in 2021, ION’s revenues continued to decline, which it stated was thanks in aspect to power businesses continuing to rein in paying out.

ION claimed $118 million in earnings for 2021. It employs 182 people, down about 45% given that early 2020.

The proposed prepare is supported by all of the company’s senior creditors, which are owed about $15.6 million, and 80% of a junior team of creditors that are owed about $116.2 million.

The enterprise obtained a $6.9 million mortgage under the federal government’s Paycheck Security Software, which was created to help smaller enterprises all through the 1st year of the COVID-19 pandemic. The bank loan was forgiven in June 2021, according to court papers.

The situation is In re ION Geophysical Company, U.S. Personal bankruptcy Court, Southern District of Texas, No. 22-30987.

For ION: Daniel McGuire, Timothy Walsh, Katherine Preston and Laura Krucks of Winston & Strawn

For advertisement hoc team of to start with lien creditors and 2nd lien noteholders: Ryan Preston Dahl, Matt Roose, Uchechi Egeonuigwe and Katharine Scott of Ropes & Grey

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