Todd Shipyards Corp said itomitted payment of the quarterly dividend on its common stock
and lowered the dividend on its series A preferred stock to 75
cts from 77 cts a share.
    Todd said the 75 ct preferred dividend will be paid May one
to shareholders of record April 15.
    The company said it omitted the common dividend to cover
both losses from a commercial ship conversion contract and
increased reserves for previously announced discontinued
shipyard operations.
    In addition, the company said its lenders agreed to
temporarily reduce the net worth requirement of its revolving
credit and term-loan pact to 140 mln dlrs from 130 mln.
    The reduction will hold through May 15, it said.
    Todd said the reduction in the net worth requirement
allowed for the payment of the preferred dividend and prevented
it from violating covenants of its credit agreement.
    The company said it is also negotiating with its lenders to
extend the reduced net worth terms beyond May 15.
    Todd added that it has suffered financially because of the
U.S. Navy's unwillingness to release certain retentions under
completed ship construction contracts and a general decrease in
U.S. military spending.
 Reuter
