NEW YORK, March 24, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces its investigation as to whether Willbros Group, Inc. ("Willbros" or the "Company") issued materially false and misleading statements to investors in violation of the federal securities laws.
Willbros is an energy infrastructure contractor serving the oil, gas, petrochemical, refinery, and power industries. On March 17, 2015, after the market closed, Willbros publicized that it did not expect to be in compliance with certain terms of its credit agreements, namely its maximum leverage ratio and minimum interest coverage ratio for the period from March 31, 2015 through March 31, 2016. Without a waiver or amendment of its credit agreements, all indebtedness under Willbros' credit agreements would become due in the next twelve months. The Company stated that if its debt was accelerated and its lenders sought immediate repayment, there would be significant doubt about its ability to continue as a going concern.
The Company further stated "that a material weakness existed at December 31, 2014, over the assessment of significant risks and uncertainties associated with its ability to comply with financial covenants contained in its credit agreements, and over the assessment of its ability to meet its liquidity and capital resource needs for a reasonable period of time, primarily as a result of not reflecting certain business conditions timely and adequately in its forecast process."
On March 18, 2015, Willbros tied its liquidity problems to the downturn in its oil-and-gas business, repeating that credit defaults would raise doubts about its ability to continue as a going concern. After this announcement, Willbros shares fell approximately 60% in early trading.
If you invested in Willbros and lost money and are interested in discussing your rights and/or have information relating to the matter, please contact Thomas J. McKenna, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com.
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