Lykes Gets Title XI Guarantee To Upgrade Fleet Operations

Maritime Administrator Harold E. Shear has announced the approval in principle of an application by Lykes Bros. Steamship Co. for Title XI guarantees to assist the company in modernizing and upgrading its fleet operations.

The guarantees will aid in financing the construction of U.S.-built chassis and containers, refinancing of existing Title XI indebtedness (principal only) applicable to 12 Lykes Clipper-class vessels, financing construction of U.S.-made equipment pertaining to marine operations and the reconstruction/ reconditioning of two Express-class vessels (the Margaret Lykes and the Sheldon Lykes) at Todd-Pacific Shipyard Corp.'s Seattle division.

The Title XI guarantee totals $61,556,000, which represents 75 percent of the depreciated actual cost of 15 ships and 246 Seabee barges offered as collateral vessels.

The Margaret Lykes and Sheldon Lykes were among four containerships acquired by Lykes from Hapag-Lloyd A.G. earlier this year.

The four were built in 1968-69 and reconstructed in 1973. The ships were acquired under Public Law 98-151, passed by the Congress last November. That special legislation provided that two of the ships be reconstructed in a U.S. shipyard.

MarAd's conditional approval of the application requires that the Title XI proceeds be used as follows: finance construction of U.S.- made equipment pertaining to marine operations, $15,000,000; finance reconstruction/reconditioning of the Margaret Lykes and Sheldon Lykes at Todd Shipyard, $9,500,000; finance construction of U.S.-built chassis, $21,000,000; finance construction of U.S.-built reefer containers, $2,000,000; refinance existing Title XI indebtedness (principal only) applicable to the 12 Clipper-class vessels, $14,056,000; total application of proceeds, $61,556,000.

Other stories from September 1984 issue


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