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Monday, September 26, 2016

FGH Records Large Non-Cash Write Downs

April 17, 2002

Friede Goldman Halter, Inc. (FGH) filed a Form 10-K with the Securities and Exchange Commission. The document is available on-line at the SEC's website - www.sec.gov; a printed copy will be available in a few weeks. The company reported a loss for the year ending December 31st 2001 of $401.6 million, or $8.24 per fully diluted common share. The complete financial statements and management's analysis of the results can be reviewed in the Form 10-K. Of the total loss, $370.3 million relates to non-cash items including goodwill amortization and impairment, depreciation, loss provisions on disposition of assets, inventory write-downs, and subordinated note related write-offs. Additionally, $37.6 million relates to other items including professional fees, income tax provision adjustments and certain contract loss liabilities that were due to the Chapter 11 filing and subsequent events. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) before the unusual events described above and the gain from the sale of our French subsidiary equaled a positive $6.4 million. Jack Stone, Chief Executive Officer of Friede Goldman Halter stated, "The results reported for 2001 reflect the accounting treatment of previously reported operating issues, operating within a Chapter 11 bankruptcy process and reflect appropriate accounting treatment of past events, and are largely non-cash. The Plan of Reorganization filed with the Bankruptcy Court on March 22, 2002 reflects the latest Company business plan that is believed to be in the best interest of creditors. Friede Goldman Offshore and Halter Marine will be returning to their core businesses with a positive attitude on the part of the officers and employees. Each of these business units are strong competitors in their markets and as reorganized business' will be formidable competitors both operationally and financially. Management's commitment to our valued customers and suppliers has been the primary objective for many months and we have appreciated their strong support and endorsement. With the filing of the Plan of Reorganization, the emergence from bankruptcy is in sight."


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