Crowley Withdraws MarAd Application For Ship Financing Guarantees

Thomas B. Crowley, chairman and CEO of Crowley Maritime Corporation (CMC), recently announced the formal withdrawal of the company's application to the U.S.

Maritime Administration for $450 million in ship financing mortgage guarantees. This action follows the Administration's failure to approve the firm's application prior to a change in the law that took effect October 1, 1990.

Mr. Crowley stated: "We realized a need for the development of advanced double hulled tankers. We sought support from MarAd by filing our application. However, the laws have changed since our filing and we've decided to withdraw our application." In late August, CMC applied to MarAd for mortgage guarantees on loans to enable the diversified maritime company to obtain financing in an attempt to build a fleet of double hulled tankers that would meet with the requirements of the Oil Pollution Act of 1990 (OPA 90). Crowley explained that the new Credit Reform Act changes the law that provided MarAd with the authority to grant mortgage insurance guarantees, which has resulted in CMC's withdrawal of application.

The company complied with the rules of OPA 90 by planning the design and construction of new generation of ecologically sound tankers for the coastwide waterborne transportation of petroleum products in U.S. waters, as mandated by Congress. The move was heralded by industry and environmental groups alike.

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