ENGlobal Equity Faces Complete Wipeout in Chapter 11 Liquidation

The final chapter is now being written for ENGlobal Corporation, with shareholders facing near-total loss as the company progresses through Chapter 11 liquidation proceedings. The firm's shares have been relegated to over-the-counter trading under the ticker ENGCQ following their delisting from the NASDAQ exchange.

ENGlobal's downward spiral culminated in a Chapter 11 bankruptcy filing on March 5, 2025. What began as a reorganization effort quickly transformed into a full liquidation when the court approved a dissolution plan on June 13, 2025. This development pushed the company's shares into penny stock territory, where they now trade on the OTC markets.

The company's financial deterioration was evident even before the bankruptcy filing. Third-quarter 2024 results highlighted the accelerating decline:

• Revenue contraction from $9.5 million to $5.7 million
• Net losses totaling $0.5 million
• No signs of operational recovery despite cost-cutting measures

These historical financial metrics have become largely irrelevant as the company now exists primarily as a legal entity overseeing its own dissolution.

Should investors sell immediately? Or is it worth buying ENGlobal?

Shareholder Value Evaporates

Market capitalization figures tell a stark story of destruction, with ENGlobal's value collapsing to a mere $68,070. Trading activity has effectively ceased, with the last recorded transaction occurring on June 18, 2025. Investors face the near-certain prospect of complete loss on their positions.

Creditors maintain absolute priority in the distribution of remaining corporate assets. Historical precedent in such liquidations suggests common shareholders will recover nothing from the process. The Chapter 11 proceedings represent the final extinguishment of investment value in what was once a functioning energy services provider.

Investor Implications and Next Steps

The central question for shareholders is not whether they will incur losses, but rather the completeness of those losses. The investment landscape has fundamentally shifted—there will be no future quarterly reports, analyst coverage, or corporate developments to monitor.

Attention now focuses exclusively on the progress of asset sales and subsequent distributions to creditors. For equity holders, the reality is painfully clear: in Chapter 11 liquidations, the journey for common stock almost invariably concludes at zero value.