Congress Asks Navy to Buy Cruise Ship Built by Northrop

Executives of Northrop Grumman Corp. said Tuesday that the Navy has been asked to consider buying a half-built cruise ship the company had been making for a now-bankrupt customer. Northrop said it held talks with members of Congress on possible military uses for the ship.

Northrop, the largest U.S. military shipbuilder, said it is still in talks with the original customer--bankrupt riverboat operator American Classic Voyages Co.--but noted it is considering all possibilities for the partially completed ship.

American Classic, which had planned to buy two ships for $440million each, filed for bankruptcy protection in October, citing the effect of the Sept. 11 terrorist attacks. The Maritime Administration at that time refused to guarantee continued funding to complete the ships.

Congress inserted language into the 2002 defense appropriations bill passed in December requesting that the Navy consider using loan guarantees offered by the Maritime Administration to buy the two vessels, possibly converting them into command or hospital ships.