Key Developments: ENGlobal Corp (ENG.W)
0.61USD
20 May 2013
$0.04 (+7.91%)
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Latest Key Developments (Source: Significant Developments)
ENGlobal Corp Secures Reconstruction Project From Huntsman
ENGlobal Corp announced that it has been awarded a project from Huntsman Performance Products (Huntsman), a division of Huntsman Corporation, to provide engineering and project management services at Huntsman's manufacturing plant in Port Neches, Texas. The Company will begin work on the project immediately with engineering scheduled to be completed in the second quarter of 2013. Full Article
ENGlobal Corp Closes Divesting Of Midstream Inspection Division To Furmanite Corporation's Furmanite America, Inc
ENGlobal Corp announced that it has closed the previously announced agreement to divest Midstream Inspection division to Furmanite America, Inc. (FAI) a subsidiary of Furmanite Corporation. As announced in December 2012, the total value of the transaction to ENGlobal was approximately $6.5 million, consisting of cash at closing, retained working capital, and a promissory note issued with a parent company guarantee. ENGlobal intends to use the net proceeds from this transaction to reduce outstanding debt. The closing of this transaction completes ENGlobal's previously announced intent to divest Field Solutions segment, which included both Land/Right of Way and Midstream Inspection divisions, as a means of reducing outstanding bank indebtedness. Full Article
ENGlobal Corp Announces Agreement to Sell its Midstream Inspection Division to Furmanite
ENGlobal Corp announced that it has reached an agreement on terms under which ENGlobal's Midstream Inspection division will be divested to Furmanite America, Inc. (FAI) a subsidiary of Furmanite Corporation. The total value of the transaction to ENGlobal is expected to be approximately $6.5 million, consisting of cash at closing, retained working capital, and a promissory note issued with a parent company guarantee. ENGlobal intends to use the net proceeds from this transaction to reduce outstanding debt. The transaction is expected to close at year-end, subject to lender approval and the completion of customary conditions. Full Article
ENGlobal Corp's Subsidiary Announces Agreement To Sell Field Solutions Segment To Steele & Company, LP
ENGlobal Corp announced that a subsidiary has entered into a definitive agreement to sell substantially all of the assets of Field Solutions segment to Steele & Company, LP based in Tyler, Texas. ENGlobal's Field Solutions segment includes Right of Way and Inspection divisions, primarily serving pipeline and electric power operating companies. The purchase price will be approximately $15 million, consisting of approximately $10 million in cash at closing to ENGlobal and a $5 million promissory note payable to ENGlobal over four years. In addition, the definitive agreement provides for a purchase price adjustment based on the net working capital of the business as of closing. Proceeds provided by the transaction would be used to repay borrowings under ENGlobal's credit facility. Full Article
ENGlobal Corp Appoints New President and Chief Executive Officer
ENGlobal Corp announced that Mr. Edward L. Pagano has resigned as President, Chief Executive Officer and as a director of the Company to pursue other professional interests. Mr. William A. Coskey, P.E., Founder and Chairman of the Board, has been elected President and Chief Executive Officer, effective immediately. Mr. Pagano will be available in a consulting capacity through the remainder of 2012 to ensure a smooth and seamless leadership transition. Mr. Coskey has agreed to serve as President and Chief Executive Officer without any change to his current compensation as Chairman of the Company. Full Article
ENGlobal Corp Secures Government Defense Contract
ENGlobal Corp announced that it is one of three firms that has been awarded a multiple award contract for the procurement of automated fuel handling equipment (AFHE) support services to the U.S. Military. If all options are exercised by the United States Navy, the cumulative value of these fixed-price contracts for the three firms is an estimated $215 million and, in that case, work could continue until June 2017. ENGlobal is one of three firms awarded an indefinite-delivery/indefinite-quantity (ID/IQ), cost-plus-fixed-fee contract for technical and maintenance services for automated tank gauging and automated fuel service stations. The scope of the project includes development, design, engineering, fabrication, integration, installation, quality assurance, logistics, maintenance, life-cycle management and technical support for AFHE systems. Work will be performed at Department of Defense fuel facilities worldwide, and is expected to be completed by the second quarter 2013. The U.S. Department of Defense announced this Navy contract award on June 14, 2012. Full Article
ENGlobal Corp Announces Resignation Of Chief Financial Officer
ENGlobal Corp announced that John R. Beall, Chief Financial Officer, has resigned from the Company to pursue other interests, effective immediately. An external search is underway for a new Chief Financial Officer. In the meantime, the CFO duties will be assumed by the Company's Controller, Mark A. Hess, CPA, with oversight from Edward L. Pagano, President and Chief Executive Officer. Full Article
ENGlobal Corp Receives Two Contract Awards From Midstream Service Provider
ENGlobal Corp announced that it received two separate lump sum project awards from one of North America's provider of midstream services to producers and consumers of natural gas, crude oil, natural gas liquids, refined products and petrochemicals. The value of the combined projects is estimated to be approximately $11 million. Under the first agreement, ENGlobal contracted to provide engineering, procurement and construction support for an ethanol blending system at the client's refined products facility in Indiana. ENGlobal's scope includes mechanical, civil, structural and electrical services for the blending terminal, including the design and installation of a new storage tank, dike containment, and associated piping and electrical services. Under the second contract, ENGlobal will be responsible for all engineering, design, and procurement for and construction of a grassroots crude oil storage terminal on an existing pipeline in Texas. ENGlobal's scope includes the design and installation of a metering station, truck unloading rack, crude oil storage tank, pipeline pumps, and accessories. Another portion of the same project will authorize ENGlobal to engineer, design, procure and construct a crude oil pipeline metering station in New Mexico. ENGlobal recently began work on the projects with construction expected to begin in the third quarter 2011 and completion in second quarter 2012. Full Article
ENGlobal Corp Secures Contract From Mississippi Power
ENGlobal Corp announced that it has been awarded a contract from Mississippi Power to provide fully fabricated analytical equipment for the Kemper County Integrated Gasification Combined Cycle (IGCC) Generating Facility. Under the contract, ENGlobal is expected to engineer, design, fabricate, and test analyzer buildings and field racks as well as support field commissioning and provide verification testing. The process analytical equipment will be used to monitor levels of various process stream components such as ammonia, carbon monoxide, carbon dioxide (CO2), and oxygen to optimize process controls for the facility. ENGlobal will begin work immediately and expects to complete fabrication by the third quarter of 2012, with project completion anticipated in the second quarter of 2014. Full Article
ENGlobal Corp Negotiates $10 Million Increase To Existing $25 Million Credit Facility
ENGlobal Corporation announced that it has entered into an agreement with Wells Fargo Bank, N.A. (Wells Fargo) to amend its existing credit facility, which will reset certain financial covenants and increase the underlying line of credit limit (the Amended Credit Facility). The revolving line of credit will increase from $25 million to $35 million, and will include customary covenants. In addition, with the support of Wells Fargo's Global Banking Group, ENGlobal and the Export-Import Bank of the United States (Ex-Im Bank) have agreed to the terms of a $9.5 million facility to support the Caspian Pipeline Consortium (CPC) project. Full Article
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