ENGLOBAL CORP: going-concern / distress — ENGlobal files Chapter 11 bankruptcy, secures $2.5M DIP financing from Gulf Island Fabrication

ENGLOBAL CORP

Filed Chapter 11 petitions on March 5, 2025 in Southern District of Texas Bankruptcy Court (Case No. 25-90083).
Entered DIP Credit Agreement with Gulf Island Fabrication for $2.5M senior secured super priority term loan at 12% interest.
DIP loan proceeds for working capital, fees, and bankruptcy expenses; maturity 6 months after petition or earlier upon sale/plan.
Bankruptcy Court entered interim order authorizing DIP financing on March 6, 2025.
Company warns trading in its securities during Chapter 11 is highly speculative with possible no recovery.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ENGLOBAL CORP incurred credit facility of $2.5 million with Gulf Island Fabrication, Inc. at 12.0% per annum maturing earliest of (a) the date that is six (6) months after the Petition Date; (b) forty-five (45) days after the entry of the Interim Order if the Final Order has no.

Instrument: credit facility
Principal: $2.5 million
Counterparty: Gulf Island Fabrication, Inc.
Rate: 12.0% per annum
Maturity: earliest of (a) the date that is six (6) months after the Petition Date; (b) forty-five (45) days after the entry of the Interim Order if the Final Order has no
Event: incurrence

Exact text from the filing

The DIP Credit Agreement provides for a senior secured super priority multiple draw term loan facility in the aggregate principal amount of $2.5 million

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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

ENGLOBAL CORP entered chapter 11 in United States Bankruptcy Court for the Southern District of Texas, Houston Division (petition 2025-03-05).

Proceeding: chapter 11
Court: United States Bankruptcy Court for the Southern District of Texas, Houston Division
Petition: 2025-03-05

Exact text from the filing

on March 5, 2025 (the "Petition Date"), ENGlobal Corporation (the "Company") and its direct and indirect domestic subsidiaries

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Source: SEC EDGAR

accession 0001654954-25-002684

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