Signal International, a shipbuilding and repair company, has been at the center of multiple human trafficking lawsuits. The company has been accused of recruiting Indian workers with promises of high-paying jobs in the US, only to subject them to forced labor and exploitation.
The lawsuits against Signal International were filed in 2007 and 2008, alleging that the company had brought hundreds of Indian workers to the US under the H-2B visa program, which is intended for temporary non-agricultural workers. These workers were then forced to live in squalid conditions and work long hours for little pay.
The cases against Signal International were settled out of court for a total of $14 million.
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Company Status
Signal International has been through a significant transformation. The company filed for Chapter 11 bankruptcy protection in July.
It was hurt by falling oil and gas prices, which had a major impact on its operations. Signal International has shipyards in Mobile, Alabama, and Pascagoula, Mississippi.
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The company faced $20 million in federal court claims for allegations of abusing Indian guest workers. This added to its financial struggles.
Signal International was marketed to possible domestic and international buyers, but none bid on the company. The only bidders were the Teachers' Retirement System of Alabama and Employees' Retirement System of Alabama.
These pension plans owned about 47% of Signal's shares and agreed to serve as a stalking horse bidder, providing about $90 million in bankruptcy financing. The sale was approved by a bankruptcy court.
The pension plans promised other creditors "meaningful distributions." Without this agreement, the assets would have had to be liquidated, and hundreds of jobs would have been at risk.
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