Ogden Completes Sale Of Avondale Industries Common Stock

Ralph B. Ablon, chairman of Ogden Corporation, has announced that Ogden recently completed the sale of Avondale Industries, Inc.

common stock to the Avondale Employee Stock Ownership Plan (ESOP), in accordance with the plan announced in July this year.

The ESOP includes certain employees in the companies that formerly comprised Ogden's Marine and Modular Construction and Industrial Products groups.

The transaction has the following effects: • Generates approximately $200 million in cash for redeployment, and results in no profit or loss, although substantial expense was incurred in completing the transaction.

• Provides funds for Ogden Marine Systems' solid waste resource recovery business, currently constructing projects in Tulsa, Okla.; Marion County, Ore.; Hillsborough County, Fla.; and Bristol, Conn., and recently awarded projects in Babylon, N.Y., and Indianapolis, Ind. Negotiations continue in several other communities. All projects will be operated by Ogden Allied Services under contracts of at least 20 years.

• Significantly improves financial position, as net worth is unchanged, and available cash is sufficient to retire all senior debt if desirable.

• Reduces exposure to cyclical businesses and substantially reduces administrative overhead.

• Provides a participation in Avondale Industries, Inc. through the ownership of preferred stock and warrants convertible into 30 percent of the common stock of Avondale.

• Insures ability to maintain common stock dividend.

William F. Connell, formerly an Ogden executive vice president, will be chairman and chief executive officer of Avondale Industries. Albert L. Bossier Jr., formerly president of Avondale Shipyards, Inc., will continue as president of the Avondale division and will assume additional responsibilities in connection with the Mayville, Ortner, and Yuba divisions. Robert S.

Miller, formerly chief administrative officer of Avondale Shipyards, will retain the same post at Avondale Industries.

Maritime Reporter Magazine, page 80, Nov 1985

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