February 20, 2002
FGH sells AmClyde
The Friede Goldman Halter, Inc. bankruptcy saga drags on. The company was, at one time, supposed to present its plan of reorganization by February 11. Apparently the court has now given it more time. Meantime, it announced yesterday that it had entering into a contract with Hydralift ASA, a Norwegian company, to acquire substantially all of the assets and activities of AmClyde Engineered Products (AmClyde) for approximately $36 million. Hydralift last year bought FGH's Brissoneau & Lotz Marine (BLM) operation for $33.6 million. The AmClyde acquisition is subject to approval by the United States Bankruptcy Court, and a possible auction proceeding under U.S. Bankruptcy Law. Closing is expected to take place in April 2002.
FGH and its Official Unsecured Creditors' Committee are "evaluating other possible reorganization scenarios that are available to the company." FGH says the sale of AmClyde is the first step in resolving the bankruptcy and maintains that "considerable progress has been made in the analysis of available alternatives.
FGH's chief restructuring advisor, Jack Stone, a principal of Glass & Associates, Inc. commented, "Each of the business units are continuing to operate as before, and the company, in conjunction with the unsecured creditors' committee, is in continuing discussions with groups that have expressed a keen interest in acquiring an operating division and we are also continuing to evaluate our restructuring options. The company expects to make additional announcements regarding progress as developments require. At this time the company is focusing on maximizing the recoveries for the creditors as it appears there will not be a significant recovery if any, for our equity security holders under the plans of reorganization currently contemplated.''