Loan Guarantees Totaling $82 Million Approved By MarAd For Shipbuilding
Loan guarantees totaling nearly $82 million were approved by Maritime Administrator Warren Leback for six financing and refinancing applications under the agency's Title XI program.
With only one guarantee approved since 1987, the program had been virtually dormant. Title XI was nearly put on the chopping block by a series of huge defaults during the 1980s.
Quick approval by MarAd came before the October 1 effective date of a credit reform law that could make it more difficult to get guaranteed financing for maritime projects in the future.
The following applications were approved: •American Commercial Lines, Jeffersonville, Ind., for financing construction of 50 hopper barges and eight river tank barges. The guarantee is for $11.2 million.
•Central Gulf Lines, New Orleans. The $15 million guarantee finances the reconstruction and reconditioning of up to 500 lighteraboard- ship barges.
•Chilbar Shipping Co., Philadelphia, for refinancing a portion of current Title XI obligations issued for the financing of a chemical carrier. The approved guarantee is for $8.5 million.
•General Electric Credit Corp. of Georgia, Stamford, Conn. It will use a new guarantee worth $30.9 million to help refinance a loan on an integrated tug/barge unit.
•Ingram Barge Co., Nashville, Tenn., to finance construction of 44 open hopper barges and 15 doublehull chemical tank barges with a new $12.2 million guarantee. •Parker Towing Co., Tuscaloosa, Ala., to refinance a construction loan on 25 dry cargo barges with a new $3.9 million MarAd guarantee.