loader image
- Advertisement -

Thursday, July 18, 2024
85.1 F
McAllen
- Advertisement -

Zachry Group Faces Major Layoffs Following Bankruptcy Filing

Remains Confident to Return Stronger

Translate text to Spanish or other 102 languages!

- Advertisement -
Less than a month after subsidiaries of the Zachry Group filed for bankruptcy, the company announced significant layoffs, affecting thousands of employees. This development is a result of financial strains stemming from their involvement in the Golden Pass LNG export terminal project in Sabine Pass, Texas. Image for illustration purposes
Less than a month after subsidiaries of the Zachry Group filed for bankruptcy, the company announced significant layoffs, affecting thousands of employees. This development is a result of financial strains stemming from their involvement in the Golden Pass LNG export terminal project in Sabine Pass, Texas. Image for illustration purposes
- Advertisement -

Texas Border Business

\Less than a month after subsidiaries of the Zachry Group filed for bankruptcy, the company announced significant layoffs, affecting thousands of employees. This development is a result of financial strains stemming from their involvement in the Golden Pass LNG export terminal project in Sabine Pass, Texas. The project, a $10 billion venture with QatarEnergy and ExxonMobil, faced numerous challenges, including the COVID-19 pandemic and international geopolitical issues, which severely impacted Zachry’s financial stability.

Zachry Holdings, Inc. (ZHI) and certain subsidiaries have initiated a voluntary court-supervised Chapter 11 process to address financial difficulties related to the Golden Pass LNG project. This action aims to strengthen the company’s overall financial position while continuing to serve its customers across various industries, including energy, chemicals, power, manufacturing, and industrial sectors. Despite the bankruptcy filing, ZHI assures that work on other projects will continue uninterrupted, maintaining the highest standards of safety and quality.

- Advertisement -

John B. Zachry, Chairman and CEO of ZHI, stated, “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.”

Impact on San Antonio

The layoffs resulting from this bankruptcy will have a considerable impact on San Antonio, where Zachry Group is headquartered. With approximately 20,000 employees and $5.4 billion in operating revenues in 2023, Zachry Group is a significant economic player in the region. The layoffs could increase unemployment and create economic uncertainty for many families in San Antonio.

Looking Ahead

- Advertisement -

Despite the challenges, Zachry Holdings is optimistic about restructuring and emerging stronger. The company expects its cash on hand and operations-generated cash to provide sufficient liquidity to meet ongoing business obligations during the bankruptcy process. Additionally, ZHI plans to continue paying employee wages, contributing to retirement savings plans, and providing healthcare insurance.

In summary, while the bankruptcy and layoffs present significant challenges, Zachry Holdings is committed to navigating through this period with minimal disruption to its other operations. The impact on San Antonio, however, is likely to be profound, affecting both employees and local businesses tied to the construction giant.For more information about the restructuring process, visit 

- Advertisement -
- Advertisement -
- Advertisement -

Latest News

More Articles Like This

- Advertisement -