Why Orbital Infrastructure Shares Are Plunging Today?
Portfolio Pulse from Shivani Kumaresan
Orbital Infrastructure Group Inc (NASDAQ:OIG) shares are plunging after the company and certain of its subsidiaries filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court. The filing excludes Front Line Power Construction (FLP) and Gibson Technical Services (GTS), which are being sold separately. The company has received commitments for two debtor-in-possession (DIP) financing credit agreements with the FLP Lenders and the GTS Lender, providing $15.0 million of incremental liquidity.
August 24, 2023 | 9:59 am
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Orbital Infrastructure Group Inc has filed for Chapter 11 bankruptcy, causing a significant drop in its share price. The company's subsidiaries FLP and GTS are being sold separately.
The company's decision to file for bankruptcy has led to a significant drop in its share price. This is a direct result of the uncertainty surrounding the company's future, as well as the potential loss of value for shareholders. The sale of FLP and GTS may provide some liquidity, but it's unclear how this will impact the company's long-term financial stability.
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