Financially struggling energy contractor CB&I risked violating its loan agreements at the end of June, but it managed to reach new, amended deals with its lenders.
FuelFix.com reports the new agreements require CB&I to use the proceeds from a planned $2 billion sale of its technology business to pay nearly all of its $1.8 billion in debt. Failure to make the payment without lender approval would put the company at risk of default.
The Woodlands-based company is enacting a new strategy to fix its finances as a smaller company more focused on engineering, construction and fabrication for the petrochemical, refining, liquefied natural gas and gas-fired power sectors.
CB&I sold its Baton Rouge-based Capital Services Division to Veritas Capital earlier this year for $755 million. The division has since been rebranded.
