ION Geophysical Corp. was downgraded on Jan. 4 by S&P Global Ratings to D, from CCC and a negative outlook, after the company missed roughly $12 million in interest and principal payments due Dec. 15, 2021. Ratings also downgraded Ion's 8% senior secured second priority notes due 2025 to D, from CCC.

On Dec. 15, 2021, ION elected not to pay $7.7 million of principal and interest due on its 9.125% senior secured notes and $4.6 million of interest due on its 8% notes. The 8% notes have a 30-day grace period to cure the missed payment. They were issued in April 2021 following an exchange offer to holders of the 9.125% notes.

Regarding the December interest and principal misses, ION said at the time that a review of its strategic alternatives, which had been announced in September 2021, had "advanced to the stage where the Company may implement one or more transactions to improve its capital structure and achieve a more stable financial position." ION had hired Tudor Pickering, Hold & Co. to assist with the review.

S&P Global Ratings noted that, as Ion is discussing strategic alternatives with advisers, it anticipates the discussions "will likely result in a comprehensive debt restructuring or a bankruptcy filing."

ION is a technology-focused company that provides geoscience products, services and solutions to the oil and gas industry, offshore logistics, ports, marine robotics and defense industries.