Work Continuing Without Interruption Across
All Other Projects with Highest Standards of Safety and
Quality
SAN
ANTONIO, May 21, 2024 /PRNewswire/ -- Zachry
Holdings, Inc. (the "Company" or "ZHI") today announced that ZHI
and certain of its subsidiaries have initiated a voluntary
court-supervised Chapter 11 process that provides them with time
and flexibility to resolve issues related to the Golden Pass LNG
(GPX) export terminal project in Sabine
Pass, TX. This action is intended to strengthen the
Company's overall financial position as it continues to serve its
customers across the energy, chemicals, power, manufacturing, and
industrial industries. Work at all remaining jobsites is continuing
without interruption, and ZHI remains committed to delivering
outstanding execution while upholding the highest standards of
safety and quality.
John B. Zachry, Chairman and CEO
of ZHI said, "We have built a strong business over the last 100
years by providing our customers the highest quality turnkey
engineering, construction, maintenance, turnaround, and fabrication
services. Since beginning work on the Golden Pass LNG project in
2019, we have maintained our usual high standards of excellence and
gone above and beyond to accommodate the schedule and demands of
GPX and its shareholders, QatarEnergy and ExxonMobil. As the
project's lead contractor, we have navigated significant challenges
and disruptions stemming first from the COVID-19 pandemic and, more
recently, international geopolitical issues. These unforeseen
disruptions have resulted in significant financial strain while
meeting targets and keeping the project appropriately staffed.
He continued, "We have been transparent with GPX and its
shareholders as we have attempted to reach a mutually agreeable
resolution to these issues. Because we have been unable to find a
path forward, we have been forced to take action to protect our
business. The process we are starting today provides us mechanisms
to initiate a structured exit from the GPX project. It also enables
us to take certain actions that will improve our performance and
better position our business for the future."
Mr. Zachry concluded, "All other projects and company efforts
continue to perform in line with expectations, and we will continue
serving our customers while maintaining our commitment to quality
and safety as we move through this process. We thank our customers,
vendors, partners, and community stakeholders for their continued
support. We are also grateful to our employees for the excellent
work they perform on a daily basis and for how they represent our
company."
Additional Information About the Court-Supervised
Process
ZHI and certain of its subsidiaries have filed voluntary
petitions for a court-supervised restructuring under Chapter 11 of
the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the
Southern District of Texas.
The Company expects that its cash on hand, along with cash
generated from operations, will provide sufficient liquidity for
the Company to meet its ongoing business obligations during the
court-supervised process.
The Company has filed a number of customary motions seeking
court authorization to continue to support its ongoing operations
during the court-supervised process. Subject to approval of these
motions, the Company does not expect this process to impact
employee wages, health and welfare benefits plans, or qualified
retirement savings plans. The Company expects to receive court
approval for these requests. ZHI also intends to pay vendors and
suppliers in full under normal terms for goods and services
provided during the bankruptcy case.
Additional information regarding the Company's court-supervised
process is available at www.ZHIrestructuring.com.
Court filings and other information related to the proceedings
are available on a separate website administered by the Company's
claims and noticing agent KCC at www.kccllc.net/zhi, by calling KCC
toll-free at (866) 479-8211 (U.S./Canada) or (781) 575-2037 (International), or
by submitting an inquiry at www.kccllc.net/zhi/inquiry.
White & Case LLP is serving as legal advisor to ZHI and M3
Advisory Partners, LP is serving as financial and restructuring
advisor.
About Zachry Holdings, Inc.
Zachry Holdings, Inc. is North
America's pacesetter in turnkey engineering, construction,
maintenance, turnaround, and fabrication services to the energy,
chemicals, power, manufacturing, and industrial sectors. We work
with customers to plan, build, and renew their most critical
facilities, so they can achieve their immediate and long-term
goals, all at the highest safety standards. Since 1924, we have
been a purpose-driven organization, united by a shared set of
values and the desire to deliver the very best outcome for our
customers. Visit zachrygroup.com for more information.
Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute forward-looking statements.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could impact the Company's
objectives and plans or cause the actual results of the Company to
differ significantly from the historical results or from any future
results expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such
differences include, but are not limited to, risks and
uncertainties relating to the Chapter 11 process, competition in
the industry, general domestic or international economic
conditions, and changes in laws or regulations. In addition to
statements which explicitly describe such risks and uncertainties,
readers are urged to consider statements labeled with the terms
"believes," "belief," "expects," "intends," "anticipates," "plans,"
or similar terms to be uncertain and forward-looking.
Media Contacts
media@zachrygroup.com
Michael Freitag / Aaron Palash / Carly
King
Joele Frank, Wilkinson Brimmer
Katcher
212-355-4449
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SOURCE Zachry Holdings, Inc.