Friede Goldman Halter Selling Design And Engineering Group

Friede Goldman Halter has sold its naval design and engineering group for $15 million to United Heavy B.V., a division of United Heavy Machinery.

FGH on Friday said an earlier announced sale of Friede & Goldman Ltd. to a group called FGL Acquisitions has been rescinded.

"The competitive bidding for FGL shows the level of confidence the marketplace has in the products and services offered by Friede & Goldman Ltd. and its future,'' said Jack Stone, president and CEO of FGH.

On Wednesday, FGH announced that Louisiana-based Bollinger Shipyards bought Halter Marine for $48 million. The deals are subject to the approval of the U.S. Bankruptcy Court.

Gulfport-based Friede Goldman Halter, which owns both the divisions, has been in bankruptcy since April 2001 and is selling parts of the company as it restructures.

Friede & Goldman Ltd. and Halter Marine are two of FGH's three business units. FGH has said it will keep its division that builds and repairs large drilling and production rigs for the offshore energy industry.

FGH will focus on upgrading and converting such rigs, officials said.

Friede Goldman Halter designs and manufactures equipment for the maritime and offshore energy industries. The company's recent financial problems centered on four deep-water rigs mired in contract disputes between Friede and two customers.

Friede Goldman Halter submitted its reorganization plan to the courts in March. Company officials expect a ruling June 19.