SAN ANTONIO – Thousands of workers are out of work after Zachry Holdings filed for bankruptcy.
The San Antonio-based construction firm laid off 4,410 employees the day it filed for Chapter 11 protection, according to a notice submitted to the Texas Workforce Commission. The firm pursued the measure after experiencing financial issues in its role as the lead contractor on the Golden Pass LNG export terminal project in Sabine Pass, Texas. Employees in Jefferson, Harris and Orange counties are affected.
The roles included carpenters, concrete workers, electricians and a slew of other workers who played a role in the development. In its letter to TWC, the company blamed “unforeseen business circumstances.”
“A majority of Zachry’s employees at the Facility will be impacted,” Zachry General Counsel James Old wrote to the commission. “All affected employees either have been or are being notified of their separations from employment, and that such separation will be permanent in nature.”
Zachry Holdings is currently engulfed in litigation with Golden Pass LNG, a joint venture between ExxonMobil (NYSE: XOM) and QatarEnergy. Zachry alleges that the firm avoided paying billions to the firm for exceeding construction costs. The two parties, along with other contractors McDermott International, Inc. and Chiyoda International Corp. are currently negotiating the terms of Zachry’s exit from the project.
Read the fully story in the San Antonio Business Journal.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.