Morrison Knudsen Expects Bridge Loan

Morrison Knudsen Corp. expects to get a $50 million loan that will keep the engineering and construction company in business until midsummer, Chief Executive Officer Robert Tinstman said.

“It’s the first step in terms of our … financial restructuring,” Tinstman told about 300 employees Tuesday during a meeting at company headquarters to introduce new Chairman Robert S. Miller Jr.

Tinstman also said MK has reached an “inter-creditor” agreement with its 28 lenders and its bonding company, Fidelity and Deposit Co. of Maryland.

The bonding company and the banks stand to lose huge sums of money if Morrison Knudsen fails. The agreement ensures that everyone is taking an equal share of the risk as MK restructures its debts, Tinstman said.

Tinstman said the $50 million loan will give MK time to sell its stakes in MK Gold Co., MK Rail Corp., and several other non-core businesses to raise more cash.