OTHER NEWS - July 1, 1995

Morrison Knudsen Avoids Chapter 11: The troubled engineering, construction, mining and transit firm, under pressure to raise cash, said it reached an agreement with its bankers on a $30-million loan. MK said the arrangement, which requires the approval of all of its lenders, would provide sufficient liquidity until late 1996, when a substantial recapitalization through an equity infusion or new debt will be required. “We’re not out of the woods yet, but this is the chance we’ve been waiting for,” said Chairman Robert Miller. Morrison Knudsen Corp., based in Boise, Ida., lost $350 million in 1994 and is struggling to recover from a dramatic dip in its fortunes after straying from its core businesses; it warned two weeks ago it might have to seek bankruptcy protection in lieu of a deal with its lenders. On Wednesday, MK Rail Corp., which is 65% owned by Morrison, announced it was putting itself up for sale. The Pittsburgh-based locomotive manufacturer recently reported a $31.1-million loss in 1994.