B&W: Conditions raise doubt about ability to continue as going concern

At December 31, 2024, the company had total debt of $473.9M and a cash, cash equivalents and restricted cash balance of $127.6M. The company has a credit agreement that provides for an up to $150M asset-based credit facility with an outstanding balance of $124.4M, comprised of a $35.1M revolver and $89.3M in letters of credit as of December 31, 2024 that is now currently due in November 2025 and accordingly is classified as a current liability. In addition, the company has senior notes with an aggregate principal amount of $193M as of December 31, 2024 for which the maturity date is February 2026 and is within the 12 months following the issuance of these financial statements. As a result of the uncertainty regarding its demonstrated ability to repay the current debt, these conditions raise substantial doubt about the company’s ability to continue as a going concern. Management believes it is taking all appropriate actions to address the current debt and alleviate the going concern; however, these plans have not been finalized and are subject to market conditions.