iON Action Camera Manufacturer Files For Bankruptcy

by San Antonio Attorney

iON, a manufacturer for wearable digital recorders at par with GoPro, recently filed for bankruptcy, after the massive drop of its revenues.

iON has officially reached an agreement with restructuring with its lenders, which would require the cutoff of more than $15 million from its total debt from the balance sheet, resulting to iON maintaining its operations.

Chris Oatway, iON Chief Financial Officer, stated that the financially deprived company has been marred with endless problems with funds.  These include disputes with the licensed brands and a lawsuit relating to intellectual property with GoPro.

iON has witnessed its revenues drop from $25 million in 2014 to $12.4 million last year, according to court papers.

iON has its own share to legal issues as it recently filed a patent lawsuit against GoPro last 2015.  Due to the high profile nature of the case, the lawsuit is predicted to yield no result and in the end, the company will incur steeper legal fees.

Despite the legal issues, the company hopes to maintain operations as it will launch another 4K camera due next year.  This new model is reasonably priced to be at par with GoPro’s pricing.

The total debt of the company is approximately $5.4 million in total secured debt, which consists of debts from the supplier and manufacturers.  Skylight Holdings, who has agreed to give a loan worth $1.5 million to the company.

Other debts include $4.6 million secured promissory note and another $12.6 million worth in trades.  iON also has debts worth $7.8 million in affiliation with World Wide Licenses.  These own both trademarks and intellectual properties.  However, World Wide is not covered under bankruptcy protection.

iON aims to obtain permission, in order to utilize its bankruptcy loan and give wages to their employees at a hearing.

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