Zachry Holdings, Inc. and 20 subsidiaries filed for Chapter 11 protection on May 21, 2024 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (Case No. 24-90377) before Judge Marvin P. Isgur. The filing followed cost overruns and default notices on the Golden Pass LNG export terminal project in Sabine Pass, Texas, which Zachry Industrial was constructing under a fixed-price EPC contract (total project cost ~$10 billion; Zachry's share ~$5.8 billion). The contractor faced inaccurate geological studies, COVID-19 disruptions, supply chain issues, and project owner Golden Pass began direct-paying vendors in March 2024 and ceased progress payments in April 2024, while Zachry incurred approximately $30-40 million per week in expenses. The court authorized cash collateral use subject to rolling 13-week budgets and variance reporting. Zachry resolved the Golden Pass dispute through a comprehensive settlement approved August 12, 2024, unwinding the project relationship and allocating vendor claims and letter-of-credit exposure. The company confirmed a Chapter 11 Plan of Reorganization on February 27, 2025, with restructured debt and a GUC trust funded with a 15% interest GUC note (7.5% cash, 7.5% PIK), projecting 100% recovery for general unsecured claims.
