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AVONDALE INDUSTRIES, INC., REACHES SETTLEMENT WITH THE U.S. NAVY ON ITS REQUESTS FOR EQUITABLE ADJUSTMENT

 NEW ORLEANS, Dec. 30 /PRNewswire/ -- Avondale Industries, Inc. (NASDAQ-NMS: AVDL) announced today that it had reached a settlement with the U.S. Navy on previously announced outstanding Requests for Equitable Adjustment principally relating to contracts to build seven T-AO, three LSD-CV and one T-AG vessels.
 In commenting on the settlement, Albert L. Bossier Jr., chairman, president & chief executive officer of Avondale, stated: "While the amount of the settlement is below what we had sought, it will enable Avondale to eliminate the outstanding balances of its bank credit facilities and to retire its senior notes. This will allow Avondale to focus on its recently acquired contracts for approximately $1.8 billion (including options) of shipbuilding work and to compete more effectively for new work in the future."
 Bossier acknowledged the efforts of U.S. Sen. J. Bennett Johnston (D- LA) and Congressman Bob Livingston (R-LA) for their help in appropriating the funds used for the purpose of reaching this understanding. In addition, the leadership of Congressman Bill Jefferson (D-LA), in whose district Avondale is located, was essential to the recent progress toward a resolution.
 The settlement is not expected to require Avondale to recognize any further losses on the contracts through completion. As a result of timing factors and other circumstances, however, it is expected that the company will record a loss for the fourth quarter and full year 1993.
 Avondale Industries, Inc., headquartered in metro New Orleans, is one of the nation's leading marine fabricators. In addition to its shipbuilding operations, the company specializes in boat construction and is a major repair contractor for commercial and Navy ships. It is also involved in the modular construction of plants and components for a variety of land-based industries.
 -0- 12/30/93
 /CONTACT: Thomas M. Kitchen of Avondale Industries, 504-436-5237/
 (AVDL)


CO: Avondale Industries, Inc.; United States Navy ST: Georgia IN: MAR SU: CON

BR-TG -- AT008 -- 8169 12/30/93 17:36 EST
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Publication:PR Newswire
Date:Dec 30, 1993
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