Southland Holdings, Inc. 8-K

What Happened
Southland Holdings, Inc. (SLND) disclosed that its wholly owned subsidiary, American Bridge Company, received an adverse trial-court ruling in American Bridge Company v. Clark/Lewis Joint Venture. On January 15, 2026, the King County, Washington trial court entered a judgment against American Bridge and certain of its sureties, jointly and severally, for approximately $57 million. American Bridge disagrees with the decision and intends to appeal, but the company warned there is no guarantee the appeal will succeed.

Key Details

• Trial court order dated January 15, 2026; case relates to construction of the Washington State Convention Center.
• Judgment against American Bridge and certain sureties: approximately $57 million (principal).
• American Bridge will appeal the ruling but noted no assurance of success.
• Southland is working with Callodine Commercial Finance, LLC (agent) and lenders under its Term Loan and Security Agreement (Credit Agreement dated Sept 30, 2024, amended Mar 3, 2025) and is analyzing accounting and financial reporting impacts.

Why It Matters
This ruling could affect Southland’s cash, credit arrangements, and financial statements depending on appeal outcomes and any payments required. The company is coordinating with its lenders and assessing accounting impacts—actions investors should watch for updates on potential liabilities, covenant impacts under the Credit Agreement, and any material adjustments to reported results.