Houston, TX, Jan. 3, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG), a leadingprovider of energy-related engineering and automation services,announced today that it has closed the previously announcedagreement to divest its Midstream Inspection division to FurmaniteAmerica, Inc. ("FAI") a subsidiary of Furmanite Corporation. As announced in December 2012, the total value of the transactionto ENGlobal was approximately $6.5 million, consisting of cash atclosing, retained working capital, and a promissory note issuedwith a parent company guarantee. ENGlobal intends to use the net proceeds from this transactionto reduce outstanding debt. The closing of this transactioncompletes ENGlobal's previously announced intent to divest itsField Solutions segment, which included both its Land/Right of Wayand Midstream Inspection divisions, as a means of reducingoutstanding bank indebtedness. About ENGlobal ENGlobal (NASDAQ: ENG), founded in 1985, is a provider ofengineering and related project services principally to the energysector throughout the United States and internationally. ENGlobaloperates through two business segments: Automation and Engineering& Construction. ENGlobal's Automation segment provides servicesrelated to the design, fabrication & implementation of processdistributed control and analyzer systems, advanced automation, andrelated information technology. The Engineering &Construction segment provides consulting services relating to thedevelopment, management and execution of projects requiringprofessional engineering as well as downstream inspection,construction management, mechanical integrity, field support,quality assurance and plant asset management. ENGlobal hasapproximately 1,500 employees in 12 offices and9 cities. Further information about the Company and itsbusinesses is available at www.ENGlobal.com. Safe Harbor for Forward-Looking Statements The statements above regarding the Company's expectationsregarding its operations and certain other matters discussed inthis press release may constitute forward-looking statements withinthe meaning of the federal securities laws and are subject to risksand uncertainties including, but not limited to: (1) ourability to realize the benefits of the sale of the Inspectiondivision, including our ability to collect unbilled tradereceivables; (2) whether the exploration and consideration ofstrategic alternatives will result in any transaction and suchtransaction's effects on the Company and its stockholders;(3) our ability to comply with the terms of the forbearanceagreement with respect to the Company's Revolving Credit andSecurity Agreement, including our ability to develop a plan torestore compliance with the terms of such credit facility;(4) our ability to obtain the cure or waiver of defaults underthe Company's Revolving Credit and Security Agreement and ourexisting letter of credit facility with Export-Import Bank of theUnited States; (5) our ability to achieve profitability andpositive cash flow from operations; (6) our ability to collectaccounts receivable and process accounts payable in a timelymanner; (7) our ability to respond appropriately to thecurrent worldwide economic situation and the resulting decrease indemand for our services and competitive pricing pressure;(8) our ability to achieve our business strategy whileeffectively managing costs and expenses; (9) our ability toaccurately estimate costs and fees on fixed-price contracts;(10) the effect of changes in the price of oil;(11) delays related to the award of domestic and internationalcontracts; (12) our ability to execute to our internalperformance plans such as our productivity improvement and costreduction initiatives; (13) the effect of changes in laws andregulations with which the Company must comply and the associatedcosts of compliance with such laws and regulations, eithercurrently or in the future, as applicable; (14) the effect ofchanges in accounting policies and practices as may be adopted byregulatory agencies, as well as by the FASB; (15) the effecton our competitive position within our market area in view of,among other things, increasing consolidation currently taking placeamong our competitors; (16) our ability to win new businessand convert those orders to sales within the fiscal year inaccordance with our annual business plan; (17) achievement ofour acquisition and related integration plans; and (18) theuncertainties of the outcome of litigation. Actual results and thetiming of certain events could differ materially from thoseprojected in or contemplated by the forward-looking statements dueto a number of factors detailed from time to time in ENGlobal'sfilings with the Securities and Exchange Commission. In addition,reference is hereby made to cautionary statements set forth in theCompany's most recent reports on Form 10-K and 10-Q, and other SECfilings. Click here to join our email list: http://www.b2i.us/irpass.asp?BzID=702&to=ea&s=0.
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