Bankruptcy: ENGLOBAL CORP

Form Type: 8-K

Filing Date: 2025-04-21

Corporate Action: Bankruptcy

Type: Update

Accession Number: 000164117225005574

Filing Summary: ENGlobal Corporation filed for Chapter 11 bankruptcy protection on March 5, 2025, with its case being administered under case number 25-90083. The company entered into an Asset Purchase Agreement on April 15, 2025, with Gulf Island Automation & Infrastructure, LLC, serving as the stalking horse purchaser for substantially all of the company's assets. The purchase will be financed through a credit bid and the assumption of certain liabilities. The transaction is scheduled for approval at a Bankruptcy Court hearing on April 25, 2025. The bid deadline for this process was set for April 17, 2025, and since no other qualified bids were received, the auction has been cancelled. The agreement includes various conditions and may be terminated under specific circumstances, including failure to achieve closing by June 30, 2025. Forward-looking statements within the filing indicate various uncertainties related to the bankruptcy process and the company's future operations.

Form Type: NT 10-K

Filing Date: 2025-03-28

Corporate Action: Bankruptcy

Type: New

Accession Number: 000165495425003546

Filing Summary: ENGlobal Corporation is unable to file its Annual Report on Form 10-K for the year ended December 28, 2024, by the March 28, 2025 due date due to its recent filing of voluntary petitions under Chapter 11 on March 5, 2025. This decision was made in the context of liquidity constraints which have prevented the company from paying necessary fees to auditors and completing the report. The Chapter 11 cases have also diverted significant management attention away from the required accounting tasks. The company suggests that its continued operation as a publicly traded entity may depend on the outcomes of the bankruptcy process. Current Reports on Form 8-K will be filed to disclose material events during the bankruptcy proceeding. The results of operations for 2024 show significant adverse developments compared to the previous fiscal year, particularly losses stemming from the Chapter 11 filing and associated liquidity issues.

Form Type: 8-K

Filing Date: 2025-03-12

Corporate Action: Bankruptcy

Type: New

Accession Number: 000165495425002684

Filing Summary: ENGlobal Corporation and its subsidiaries filed for Chapter 11 bankruptcy on March 5, 2025. The filing is under Case No. 25-90083 in the United States Bankruptcy Court for the Southern District of Texas. The company aims to continue operating its businesses in a debtor-in-possession capacity while seeking relief under the Bankruptcy Code. They also filed motions for debtor-in-possession financing through a Credit Agreement amounting to $2.5 million, which the court temporarily authorized on March 6, 2025. The financing will be utilized for working capital, paying interest and expenses, and other designated purposes as per an approved budget. The DIP Credit Agreement is secured by a first priority interest in all assets of the borrowers, with an interest rate of 12.0% per annum. There are potential risks associated with trading the company’s securities during this bankruptcy period, including speculative price fluctuations and potential low recovery for security holders.

Form Type: 8-K

Filing Date: 2025-03-06

Corporate Action: Bankruptcy

Type: New

Accession Number: 000165495425002332

Filing Summary: On March 5, 2025, ENGlobal Corporation and its subsidiaries filed voluntary petitions for relief under Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas. The company is seeking joint administration of these cases and continues to operate as 'debtors-in-possession'. They plan to facilitate operations through various 'first day' motions and are discussing debtor-in-possession financing and potential sale transactions. The filing also triggered default provisions under existing debt instruments, leading to an automatic stay of enforcement efforts by creditors. Trading of the company’s securities is cautioned against due to its speculative nature amidst bankruptcy proceedings.