Bankruptcy: GULF ISLAND FABRICATION INC

Form Type: 8-K

Filing Date: 2025-03-06

Corporate Action: Bankruptcy

Type: New

Accession Number: 000095017025034816

Filing Summary: On March 6, 2025, Gulf Island Fabrication, Inc. entered into a debtors-in-possession credit agreement with ENGlobal Corporation and certain subsidiaries, subject to Bankruptcy Court approval. This followed the Borrower's voluntary petitions for relief under Chapter 11 filed on March 4, 2025. Gulf Island plans to lend up to $2.1 million through a senior secured super-priority multiple-draw term loan facility, with a 12% interest rate. Additionally, a prepetition secured bridge loan of $400,000 will convert into the DIP Credit Agreement. The loans are to support permitted expenses. The maturity of the loans depends on events such as the sale of the Borrower’s assets or a reorganization plan. The Company evaluates whether core assets of the Borrower could be strategic additions, potentially bidding on these assets while offering employment to certain employees. The DIP Credit Agreement allows Gulf Island to submit a credit bid against the Purchase Price for any amounts due under the DIP Loans.

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