Agee Shuns Deal With Morrison Knudsen

Former Morrison Knudsen Corp. Chairman William Agee is the lone holdout in settling the 19 shareholder lawsuits that are key to bank refinancing to save the company, a shareholders’ attorney says.

Without the settlement, the company could run out of cash as early as Monday and be in technical default of more than $343 million in short-term debt.

Former board members, including mutual fund guru Peter Lynch and real estate mogul John Arrillaga, appear ready to settle, said attorney Mack Redford, who represents shareholders suing Agee and the board. Agee continues to hold out for a $6 million retirement and severance package.