Gulf Island Fabrication Inc. has made significant progress in its involvement with ENGlobal Corporation's bankruptcy proceedings. The company had initially entered into a debtor-in-possession credit agreement, agreeing to lend up to $2.5 million to ENGlobal, which filed for Chapter 11 bankruptcy. This amount was later increased to $3.5 million as approved by the U.S. Bankruptcy Court. Gulf Island Fabrication completed the acquisition of certain assets from ENGlobal's automation and engineering businesses, effectively utilizing the full amount of the DIP loan as a credit bid. Additionally, the company assumed a senior secured loan from Alliance 2000, Ltd., totaling $2.4 million, for a cash payment of $1.5 million. As of mid-June 2025, Gulf Island Fabrication's total cash payments related to these transactions amounted to $5.0 million, marking a pivotal step in its strategic acquisition and restructuring efforts.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.