Ogden Corp. will spin off Avondale Shipyards.

In a $375-million deal, the troubled New Orleans shipyard, together with six other industrial products subsidiaries, will become a new company, Avondale Corp., owned by its employees, Sen. Russell Long (D-La.) and company officials said. The deal will be financed with a $190-million bank loan and $80 million in excess assets available from terminating the Ogden pension plan. The move is scheduled to be completed in September. Seventy percent of Avondale will be held by its 7,500 employees through an employee stock ownership plan, and Ogden will own the remaining 30%.