Morrison Knudsen Expects Big Loss

Morrison Knudsen Corp. expects to lose $105 million in its third quarter, which would wipe out the company’s net worth for the first time.

While experts insist the company is not in danger of collapse, they say a negative net worth poses some big problems.

It will be much harder for MK to borrow more money and its stock will be less attractive.

MK is counting on selling $150 million in stock next year, a step that is crucial to completing its financial restructuring.

Company spokesman Brent Brandon conceded the estimated loss was disappointing. But he insisted MK’s problems have not grown worse.

“Despite the loss, our core businesses have stabilized and are tracking close to plan,” Brandon said.