Morrison Knudsen May Sell Subsidiaries
Morrison Knudsen Corp. announced on Monday it will consider unloading some of its subsidiary businesses as it attempts to cope with a quarter billion dollars worth of debt.
In a statement issued as the board of directors meet in Boise for the first time since the ouster of former Chairman William Agee, the company said a restructuring would involve exploring the sale of what it termed non-core businesses.
Included in that list was Morrison Knudsen’s 46.4 percent equity interest in MK Gold Co., its 65 percent interest in MK Rail Corp. and its 63 percent interest in the Australiabased McConnell-Dowell construction company as well as its investment in the American Bank of Poland and Western Aircraft Inc., its Boise-based corporate and general aviation service center.
MK Gold has estimated North American production of more than 70,000 ounces of gold this year.
Acting Chairman William Clark said the planned sell-offs would provide the one-time construction and engineering giant with the financial flexibility needed to strengthen the company’s construction, engineering and mining enterprises.
MK Rail manufactures rail components and remanufactures locomotives. The company’s transit care business, developed by Agee, was a major contributor to the $175 million in losses the company is expected show for the fourth quarter.
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