secwatch.observer — SEC 8-K summary
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Issuer:     ENGLOBAL CORP (—)
CIK:        0000933738
Form:       8-K
Filed at:   2023-06-20T23:59:59+00:00
Accession:  0001654954-23-008161
Event type: debt
Sentiment:  negative
Materiality: 0.65
Item codes: 1.01, 2.03, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

ENGlobal enters $1.25M credit facility with Executive Chairman, repays Pac West loan
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- Credit agreement with Alliance 2000 (beneficial owner of >22% stock, controlled by Exec. Chairman Coskey) for up to $1.25M.
- Initial term loan of $1M drawn; additional $250K discretionary; interest rate 8.5%, one-year term, quarterly interest-only payments.
- Proceeds repaid Pacific Western credit facility in full; remainder for general corporate purposes.
- Company expects net loss in Q2 but monthly results improved; closed construction/field services, reduced payroll ~50% from peak.
- Backlog as of May 31, 2023 over $16M; goal of returning to profitability by 2024.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/933738/000165495423008161/0001654954-23-008161-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/933738/000165495423008161/eng_8k.htm
  HTML page:      https://secwatch.observer/filing/0001654954-23-008161

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