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johnnyrockets527 t1_jbtck1y wrote

From what I’ve heard, they’ve been blacklisted by so many vendors for non-payment they’re buying tools on amazon with credit. Tons of firings, writing might be on the wall.

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eaglepark t1_jbty1tw wrote

source?

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captain_carrot t1_jbu0ti3 wrote

A friend of mine is a civil engineer who works for them. He says it's horrible and they are always late on their vendor payments and have hundreds of thousands of outstanding invoices with every vendor he has to work with. This doesn't surprise me at all.

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fishythepete t1_jbu39x1 wrote

This is pretty typical for how large construction firms fail. If you’re slow / no paying vendors you’re way beyond just job borrow. The thing that surprises me the most here is that their surety holder is loaning them money.

Surety companies are not usually in the business of taking on risk, and usually are looking to make sure the surety they’re providing is fully collateralized. If the bond holder defaults they liquidate collateral to pay the bond. The fact that they’re only now identifying assets that could collateralize bonds is concerning, as is the fact that the surety firm is loaning them money. In theory a bond holder’s default shouldn’t financially impact the surety agent, and so there’s no incentive to lend money to an ailing firm that already can’t meet its financial obligations. But if you’ve been lazy or generous with collateral asset valuations, you might suddenly find that you have a bunch of undercollateralized obligations that you might need to pay on. So maybe you loan the construction company money to close a bunch of bonds and leave someone else holding the bag.

Either way, some companies recover, some companies go from “everything’s fine and solvent” to “bankruptcy” in a few days, and there’s a lot in the middle.

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johnnyrockets527 t1_jbu7262 wrote

Like u/captain_carrot, I know someone that works for them.

Don’t want to give any details, it’s a small state and a small company and they’ve been getting rid of staff like crazy. But the numbers he’s throwing out are very similar to what I’ve heard. They’re overdue on a lot of “final collection notice” payments.

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