GIFI - Gulf Island rallies on sale of shipyard division assets and long-term contracts

Gulf Island Fabrication (GIFI) rallied 13.3% higher post market after selling the assets (Shipyard Division property and assets in Houma, Louisiana, including all four of the Division's drydocks) and certain long-term vessel construction contracts of the Shipyard Division to Bollinger Shipyards for ~$28.6M.Gulf Island received $26.4M at closing and will receive the remainder from Bollinger on its collection of certain customer payments associated with the divested construction contracts.It will retain the $8.8M payment received in Q1 associated with the earlier announced amendment to the U.S. Navy contracts.Net cash proceeds are expected to be ~$15M after payment of retained working capital liabilities associated with the divested construction contracts and transaction costs.Proceeds to be used for funding net working capital liabilities associated with retained construction contracts and other Shipyard Division liabilities (totaled ~$13M as of Dec.31, 2020) and the wind down of the Shipyard Division operations (expected by mid-2022).The company foresees a pre-tax loss of ~$26-$28M in connection

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Gulf Island rallies on sale of shipyard division assets and long-term contracts