NOTE 2 - NOTES RECEIVABLE

9 Months Ended

Sep. 26, 2015

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 2 – NOTES RECEIVABLE

The components of short term and long term notes receivable as of September 26, 2015 and December 27, 2014 are as follows (dollars in thousands):

	September 26, 2015			December 27, 2014
Aspen	$	514		$	514
SLE		—			448
Steele		—			3,365
Furmanite		—			4,704
Reserve		(514	)		(3,902	)
Total notes receivable		—			5,129
Less current portion (net of reserve)		—			(2,165	)
Notes receivable non-current	$	—		$	2,964

The Aspen note bears interest at 6% per annum, was due and payable in September 2011, and is fully reserved. The SLE matter was settled in December 2014 and the related note was extinguished in January 2015. On March 28, 2015, the Steele note was adjusted to its net realizable value and the reserve was eliminated. The note was subsequently collected in the second fiscal quarter on March 30, 2015.

The Furmanite notes were two separate four year notes (“Four Year Notes”), respectively dated January 1, 2013 and August 30, 2013, bearing interest at 5% and 4% per annum, payable in annual installments beginning January 1, 2014 and September 1, 2014 and maturing January 2, 2017 and September 1, 2017. On April 21, 2015, the Company and Furmanite finalized a closing working capital adjustment on the 2013 sale of ENGlobal’s Gulf Coast Operations to Furmanite. In connection with the final resolution, ENGlobal agreed to retain certain lease obligations which were originally assigned to Furmanite as part of the 2013 sale and Furmanite agreed to pay ENGlobal $3.6 million to fully extinguish the Four Year Notes, accrued interest, and related Furmanite parent company guarantees. The Four Year Notes were adjusted to their net realizable value at March 28, 2015 and were subsequently collected in April 2015.