The US Bankruptcy Court approved the second modified first amended plan of reorganization along with related disclosure statement of ION Geophysical Corporation on August 25, 2022. The debtor has filed its second modified first amended plan in the Court on August 24, 2022. As per the amended plan, administrative claims, professional fee claims, statutory claims, priority tax claims, other priority claims and other secured claims will be paid full in cash.

DIP claims of $2.5 million will be paid full in cash. Professional fee claims of committee professionals shall be capped at $1.51 million; provided that any allowed professional fee claims of the committee professionals in excess of $1.51 million shall be paid from the GUC cash payment or, to the extent paid by the debtors on or prior to the effective date, shall reduce the GUC cash payment. RCF Claims of $15.60 million will be paid full in cash and Second Lien Notes Secured Claims of $116.19 million shall recover between 28%-30% and receive its pro rata share of 99.75% of the new common stock.

General Unsecured Claims will be recovered between 3%-4% of allowed amount and paid through pro rata share of GUC recovery pool. Intercompany claims and intercompany interests will wither be reinstated or cancelled. ION Geophysical Preferred Interests will be cancelled with no distribution and holders of ION Geophysical Common Interests will be cancelled under this plan.

The plan will be funded through cash in hand, proceeds from sale of assets and GUC recovery pool.