American Commercial Lines talking to noteholders, banks on restructuring

New York, Jan. 2 - American Commercial Lines LLC said it is talking to holders of its senior notes and its bank lenders about a financial restructuring. The Jeffersonville, Ind. marine transportation company also said that it will make use of the 30-day grace period for the $15.1 million interest payment due Dec. 31 on its 10¼% senior notes.

American Commercial Lines has enough money to make the interest payment but said it is taking "aggressive" action to deal with its "significant" debt load.

The company also said it has retained investment bank Greenhill & Co. to advise on restructuring.

Business operations will continue as normal, America Commercial Lines added.

"ACL has a solid business. However, it also carries a significant debt burden. Having operated under the constraints of that debt for three years, together with unusually difficult operating conditions in the early part of 2001, and the current economic climate, ACL has decided to take aggressive action to comprehensively resolve this issue," said Michael C. Hagan, president and chief executive officer of ACL, in a news release.

"Following a financial restructuring, ACL will be better positioned to build on its eighty-six year history of industry leadership. We are optimistic that discussions with our banks and senior note holders will yield positive results for the company, and expect that a modified debt package will secure a bright future for ACL's customers, suppliers and employees."

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