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ENGlobal Corp. Message Board

  • selllowtome selllowtome Apr 26, 2013 8:05 AM Flag

    Simmons Report

    Anyone hazard a guess as to what the report recommended and what course Co. is taking?

    In 10/11/12 news release Co. said "ENGlobal does not intend to provide updates or make any further comment regarding its exploration and evaluation of strategic alternatives unless and until the Board of Directors has approved a definitive course of action."

    Co. signed credit agreement extension on 12/18/12 that expires on the earlier of: 1) 1/10/13 if Co. fails to deliver the Simmons report or 2) 1/31/13 if "Board of Directors of the Company fails to act in a manner consistent with the strategic recommendations . . ." Otherwise, the forbearance period expires on 4/30/13.

    Recent 10k says that Co. was notified that the forbearance period had expired on 1/31/13 by reason of the "failure of the Board of Directors of the Company to act in manner consistent with the strategic recommendations." However, Co. said "it does not believe that the forbearance period has expired under the terms of the applicable agreements, and [we] continue to discuss with our lenders the terms under which existing defaults may be cured or waived . . ."

    Should know by next week whether Co. is successful in these efforts and/or if it has decided on "a definitive course of action" based on Simmons report recommendations.

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