Southland Holdings, Inc. — Form 8-K

Seven surety insurers (Berkshire, Zurich, Markel, Hartford, Euler Hermes, Western Surety, Federal Insurance) entered a Financial Assistance Agreement with Southland Holdings dated August 13, 2026 (effective October 1, 2025). The sureties committed an initial irrevocable $10M+ funding within 60 days, with discretionary additional funding thereafter at 4% annual interest. In return, sureties receive preferred stock equal to 50% of 'Expected Loss' (estimated cost to complete bonded projects), with remaining 50% as unsecured debt subject to forgiveness if projects complete within 20% of budget. Personal guarantors (Renda family, Winn) and 15+ Southland entities pledged substantially all collateral. Preferred shares are perpetual, non-voting, senior to all equity, with liquidation preference and mandatory redemption rights upon restructuring.