Reserve your copy now!
Also available on
April 20, 2001
FGH files for Chapter 11
Friede Goldman Halter, Inc. last evening announced that it had filed a petition for relief under Chapter 11 of the United States Bankruptcy Code.
The petitionwas filed in the Bankruptcy Court of the Southern District of Mississippi. Thirty-one FGH subsidiaries that are co-borrowers or guarantors under the company's amended and restated loan and security agreement, dated October 24, 2000, plan to file petitions for reorganization under Chapter 11.
Concurrent with these filings,says FGH, it is "initiating efforts to achieve a comprehensive restructuring of its obligations with all its creditors. The objective of this restructuring will be to position the company to emerge from Chapter 11 with an improved capital structure and sufficient resources to carry on its business. "
Work on Bingo rigs continues
A major cause of Friede Goldman Halter's difficulties has been problems in completing the two Bingo 9000 rigs it is working on under a contract with Norway's Ocean Rig. Today, Ocean Rig issued a statement saying that it, and workers at the yard had been informed of the situation. Ocean Rig says yard management has informed it that work on the two Bingos, Leiv Eiriksson and Eirik Raude will continue until the rigs are completed.
NYSE suspends trading in FGH
The New York Stock Exchange announced today that it determined that the common stock of Friede Goldman Halter, Inc. -- ticker symbol FGH should be suspended immediately.
FGH has a right to a review of this determination by a Committee of the Board of Directors of the Exchange . Application to the Securities and Exchange Commission to delist the issue is pending the completion of applicable procedures, including any appeal by FGH of the NYSE staff's decision.
The exchange' said its action was being taken in view of the company's announcement of its Chapter 11filing. In addition, the exchange said, "the company has fallen below the NYSE's continued listing criteria relating to: inability to meet current debt obligations or to adequately finance operations, and an abnormally low selling price.
The NYSE noted that it may, at any time, suspend a security if it believes that continued dealings in the security on the NYSE are not advisable.
Navion and Skaugen form U.S. Gulf shuttle tanker company
Navion Inc. and Skaugen PetroTrans (SPT) have announced the formation of a U.S. based offshore loading company to serve deepwater interests in the Gulf of Mexico. The company, American Shuttle Tankers, LLC (AST), will be headquartered in Houston, Texas, and will be a 50-50 joint venture between Navion and SPT.
SPT (Houston, Texas) is a wholly owned subsidiary of I. M. Skaugen ASA based in Oslo, Norway. SPT specializes in ship-to-ship lightering operations and operates eight aframax tankers and four lightering support vessels in the Gulf of Mexico. SPT handles approximately 1 million barrels of crude daily, which translates to more than 40% of the lightering market in the Gulf of Mexico. Based on many new contracts entered into this year, SPT
expects to increase its activity levels in 2001. With 20 years of
operating experience, SPT has completed almost 9,000 lighterings.
Navion Inc. (Houston, Texas) is a wholly owned subsidiary of Navion ASA based in Stavanger, Norway. Navion ASA's Offshore Loading group (OSL) is the leading offshore loading company in the world, having completed nearly 11,000 liftings in more than 20 years of operation. OSL operates 24 shuttle tankers in the North Sea that serve more than 50 frame agreements with oil companies.
AST has designed a shuttle tanker specifically for the Gulf of Mexico that is sized to serve all US Gulf Coast ports. Both companies' extensive experience has contributed to a shuttle tanker design that embodies the constant evolution of technology, which further enhances the safety and reliability of the offshore loading operation.
Record first quarter for Kirby
Kirby Corporation yesterday reported record net earnings for the 2001 first quarter of $6,755,000, or $0.28 per share, compared with $6,067,000, or $0.25 per share, for the 2000 first quarter. Record first quarter revenues were $133.1 million compared with $126.5 million for last year's first quarter.
Houston-based Kirby operates 871 inland tank barges, with 15.6 million barrels of capacity, and 215 towing vessels, transporting chemicals, petrochemicals, refined petroleum products, black oil and agricultural chemicals
President and CEO Joe Pyne said the favorable results reflected unseasonably strong refined products and fertilizer marketsand were offset in part by a declining chemical and petrochemical market, and "by more severe winter weather and high water conditions than we experienced during last year's first quarter." He noted the first quarter "is historically our lowest earnings quarter due to inefficiencies and delays caused by winter weather and water conditions.''
During the 2001 first quarter, Kirby continued to reduce its debt to capitalization ratio. As of December 31, 1999, following Kirby's acquisition of Hollywood Marine, Inc., the debt to capitalization ratio was 57.3%, and was reduced to 52.8% as of December 31, 2000 and to 50.4% as of March 31, 2001.