Morrison Knudsen Returns From The Brink

Morrison Knudsen Corp., the renowned builder still stinging from the ouster of its high-profile chief executive and recent poor performance, sees better times ahead, its chairman said Friday.

“We’ve gone through the fires of hell and we’re still standing,” chairman Robert S. Miller said at news conference that followed the company’s annual meeting.

Morrison Knudsen, a marquee name in U.S. construction with landmarks like the Golden Gate Bridge to its credit, lost $350 million last year and $60 million so far in 1995. Shareholders have laid most of the blame on William Agee, who was ousted as chairman and CEO in February.

Many blamed his decisions while at Morrison Knudsen’s helm for the company’s troubles and criticized his rich lifestyle.

At the meeting Friday, Miller defended Morrison Knudsen’s decision to issue stock and warrants to secure operating cash from lenders, despite its dilution of existing stockholders’ shares. He said the company plans a stock offering of $100 million to $150 million next year to raise more cash.

Investor Robert Halliday said the company should have filed for bankruptcy court protection or looked for an investor with money to put into the company.

But Miller said filing for bankruptcy would have been disastrous, ruining the company’s reputation in an industry where experience is important.

When asked how close the company came to bankruptcy, Miller held his thumb and finger less than an inch apart. “That close,” he said. “I thought we were a goner many times.”