Plaintiff sought partial summary judgment with respect to its claim that it had the right to consent to the issuance of any security of a subsidiary of defendant ION Geophysical Corp. (“ION”), and specifically the issuance by ION through a wholly-owned subsidiary of a convertible promissory note (the “Note”). Plaintiff sought, as relief, a declaration that the note was invalid and a return to ION of the funds borrowed under the Note. The Court treated the requested relief as a motion for injunctive relief. Although the Court found that plaintiff had shown a reasonable probability of success on the merits, the Court found that plaintiff had not made a strong showing of irreparable harm and that the balance of equities weighed in favor of defendants. Accordingly, the Court denied the motion for partial summary judgment to the extent it was requesting preliminary injunctive relief.
