ABSTRACT

In September 1978, Richard T.du Moulin, Assistant to the President of Ogden Marine, Inc. (OMI), was preparing a recommendation relative to the potential purchase of tankers for the U.S. domestic trade. OMI was part of the Ogden Corporation that was involved in transportation, metals, and food. (Exhibit 8.1 shows the consolidated balance sheets for the Ogden Corporation and subsidiaries. Exhibit 8.2 presents revenues and operating profits for each business segment.)

Ogden Transportation Corporation comprises OMI; Avondale Shipyards, Inc.; and International Terminal Operating Co., Inc. (ITO). OMI owns and operates a diverse fleet of oceangoing vessels that it charters to various customers. Avondale designs, builds, modernizes, and repairs major oceangoing vessels, and builds and repairs various types of non-oceangoing craft and offshore structures. ITO provides stevedoring and terminal services in major East Coast ports.