Sureties Step in as Southland Holdings Reports Big Loss

The largest blow to the corporate was a $57-million judgment in opposition to it by a Washington State court docket decide in January associated to metal erector work on the $1.4 billion Washington State Convention Center addition in Seattle, accomplished a number of years in the past. The three way partnership contractor on that venture, a mix of Clark Development and Lease Crutcher Lewis, had blamed American Bridge for months of delayed completion.

The lawsuit, filed in 2023 in state court docket, additionally cited as defendants the businesses that equipped efficiency bonds to American Bridge, Constancy & Deposit/Zurich and Liberty Mutual.

American Bridge in its protection blamed the three way partnership and Covid-19 for the delays.

Though Southland supposed to attraction as of Dec. 31, 2025, a few of its sureties entered into negotiations with Clark-Lewis and settled the matter, Southland Holdings reported.

The sureties additionally agreed to pay a further $26.5 million to Clark-Lewis to cowl prices, charges and prejudgment curiosity.

Beneath the settlement introduced earlier this month, Southland will start repaying the sureties the whole quantity owed, about $82 million, beginning subsequent March.

The corporate’s sureties have additionally needed to step in to finance persevering with work on some tasks and have assumed $110 million of Southland’s remaining debt.

Frank Renda, Southland’s president and chief government, stated the sureties changed the corporate’s senior lender and characterised that as a “important vote of confidence in our crew” creating “monetary flexibility to deal with the venture execution of our $2 billion backlog.” 

“Whereas I’m upset on this quarter’s outcomes, I’m absolutely accountable for our outcomes and am dedicated to the strategic plan we’ve launched to maneuver Southland ahead,” Renda advised buyers.

Based mostly in Grapevine, Texas, Southland (NYSE-SLND) additionally owns Johnson Bros. Corp., a bridge and marine-based contractor, and tunneling contractors Southland Contracting and Mole Constructors.

Southland stated its loss was “pushed primarily” by the Washington State Conference Middle cost. 

Along with that setback, Southland Holdings additionally reported that its Oscar Renda unit, which performs water-related work, had been terminated for comfort from the Portland, Ore., Bull Run Filtration plant venture, decreasing the corporate backlog by about $160 million. 

Renda, on the investor convention, thanked the corporate’s workers, stakeholders and sureties “for sticking with us by way of this tough interval.”

The Washington State Conference Middle addition venture, which straddled a significant thoroughfare, has seen loads of controversy, together with the termination of a previous joint venture prime contractor.