A committee representing Ion Geophysical Corp. unsecured creditors said Monday they are concerned the seismic-mapping software's senior lenders are unfairly steering its chapter 11 restructuring.

Lawyers for the committee said during a hearing in the U.S. Bankruptcy Court in Houston that it would allow Ion to proceed with its restructuring but said unsecured creditors intend to challenge its chapter 11 restructuring plan unless the company agrees to make changes to it.

Gregory Pesce, a lawyer for the committee, said the plan will need to be revised before U.S. Bankruptcy Judge Marvin Isgur considers approving the restructuring plan, which will hand control of the business to junior bondholders.

The committee said in a court filing last week that it believes Ion's bankruptcy case is being steered by a group of bondholders including hedge fund manager Gates Capital Management Inc., which also owns equity in the company.

Ion filed for chapter 11 protection in April citing budget cuts by its oil-and-gas drilling clients.

Write to Jonathan Randles at jonathan.randles@wsj.com

(END) Dow Jones Newswires

May 09, 2022 18:57 ET (22:57 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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