Continental Illinois National Bank and Trust Co. of Chicago has terminated a loan to a major shipbuilding firm as part of the bank`s continuing effort to sift through its multibillion-dollar portfolio of problem loans.
Tacoma Boatbuilding Co. said Friday it received notice from Continental on Thursday that the bank has terminated a line of credit and loans totaling about $32 million, including accrued interest and fees, and demanded immediate payment in full.
The Tacoma, Wash.-based boatbuilder said Continental, acting as agent for itself and other banks, also took steps intended to restrict the firm`s ability to dispose of certain property in which Continental and other banks involved in the credit facility claim a security interest.
A Continental spokesman said the bank has a policy of declining comment on customer relationships. He declined to say whether the loan to Tacoma was held by Continental or the Federal Deposit Insurance Corp., which has acquired more than $3.5 billion in loans from Continental over the last year as part of the federal rescue of the Chicago bank.
The Tacoma firm, which mainly builds boats more than 100 feet long for government and commercial customers, reported a net loss of $10.86 million for the first six months of 1985. That followed losses of $48.4 million in 1984 and $19.9 million in 1983.
Michael R. Stanfield, co-chairman, told stockholders in July that the company`s cash position was ”precarious” and that the firm was ”living day to day.”
He said the company was trying to reorganize its financial situation and management to avoid filing for protection from creditors under Chapter 11 of the Federal Bankkruptcy Code.
The company laid off 600 of its nearly 1,400 employees in July and said it couldn`t pay interest on its 10.75 percent convertible subordinated debentures, due 2001.
Tacoma Boatbuilding constructs and repairs vessels for the Coast Guard and U.S. Navy as well as ocean surveillance ships, chemical waste incinerator ships and tuna fishing ships. It has four shipyards, all in Tacoma.
