HOUSTON, Nov. 18, 2016 /PRNewswire/ -- ION
Geophysical Corporation (NYSE: IO) today announced that on
November 14, 2016, the trial court
issued an order in the previously-reported lawsuit of WesternGeco
L.L.C. v. ION Geophysical Corporation that reduced the amount of
the appeal bond from $120 million to
$65 million, ordered the sureties to
pay principal and interest on the royalty previously awarded in the
amount of approximately $22 million
and declined to issue a final judgment until after consideration of
whether enhanced damages should be awarded in the case.
Brian Hanson, ION's Chief
Executive Officer, commented, "While we were disappointed with the
unusual decision by the trial court ordering the sureties to pay
the royalty damages and interest without a final judgment, we
intend to respect the trial court's decision by transferring up to
$22 million to WesternGeco in lieu of
having WesternGeco exercise its remedies against the sureties.
"It comes at a time where we have both right sized our business
and built sufficient liquidity of approximately $80 million to both fund this payment
and support normal business operations.
"This seven-year-old lawsuit has been a hangover to ION's
shareholders far too long and we are looking forward to putting
the potential risk of
this payment behind us so we can focus on running our business and
creating shareholder value through a very difficult time in the
industry. The relationship between ION and WesternGeco has
never been stronger as we both collaborate on projects and support
them as a customer of ION. The
value of this relationship far diminishes the $22 million payment and I look forward to a
strong future working relationship together."
About ION
ION is a leading provider of technology-driven solutions to the
global oil & gas industry. ION's offerings are designed
to help companies reduce risk and optimize assets throughout the
E&P lifecycle. For more information, visit iongeo.com.
Contact
Jamey Seely
Executive Vice President and General Counsel
+1.281.552.3011
The information included 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 include
statements concerning future activities and the ultimate outcome of
litigation, which is inherently unpredictable. 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.
Risk factors, which could affect actual results, are disclosed by
the Company from time to time in its filings with the Securities
and Exchange Commission ("SEC"), including its Annual Report on
Form 10-K for the year ended December
31, 2015 and its Quarterly Reports on Form 10-Q filed during
2015.
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SOURCE ION Geophysical Corporation