Orbital Infrastructure Group Inc (NASDAQ:OIG) shares are plunging after the company and certain of its subsidiaries have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas.
OIG is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in three operating segments.
The filing specifically excludes Front Line Power Construction (FLP) and Gibson Technical Services (GTS), which are being sold separately.
The company noted transactions with the FLP Lenders and the GTS Lender are part of a sale process under Section 363 of the Bankruptcy Code in which the Lenders are the "stalking horse" bidders.
"The Chapter 11 filing is not the outcome we would have wanted for our stockholders or the stakeholders, but this difficult decision was necessary to sell the primary and profitable parts of the Company as going concerns," said Vice-Chairman and CEO Jim O'Neil.
The company has received commitments for two debtor-in-possession (DIP) financing credit agreements with the FLP Lenders and the GTS Lender. The DIP financing will provide $15.0 million of incremental liquidity following the petition filing.
Price Action: OIG shares are trading lower by 27.1% at $0.8747 in premarket on the last check Thursday.