Southland Holdings, Inc. 8-K

What Happened
Southland Holdings, Inc. filed an 8-K (Item 8.01) reporting that Berkshire Hathaway Specialty Insurance Company (the Surety) agreed to advance up to $30 million under a general indemnity agreement (GIA) to pay bonded construction contract obligations and support project progress. Beginning December 22, 2025 and through the filing date, the Surety has advanced approximately $14 million. Southland is obligated to indemnify and reimburse the Surety for these advances.

Key Details

• Surety: Berkshire Hathaway Specialty Insurance Company; advancement facility: up to $30.0 million.
• Amount advanced to date: approximately $14.0 million (advances began Dec 22, 2025).
• Financing/Credit parties: Company is working with Callodine Commercial Finance, LLC (Agent) and lenders under the Term Loan and Security Agreement dated Sept 30, 2024 (amended Mar 3, 2025) to assess impacts.
• Company is negotiating with sureties, the Agent, and lenders for additional surety advances and a long‑term financing arrangement; the filing states there are no assurances a resolution will be reached.

Why It Matters
This action affects Southland’s liquidity and credit posture because the company must indemnify and reimburse the Surety for advances that fund bonded project obligations. Management is actively engaging its lender group to determine how these advances affect the existing Credit Agreement and to arrange further surety support or longer‑term financing. Investors should note the company’s obligation and the stated uncertainty about securing additional funds or a long‑term financing solution.