SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 30, 1998
INTERNATIONAL SHIPHOLDING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 2-63322 36-2989662
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
650 Poydras Street, New Orleans, Louisiana 70130
(Address of principal executive offices) (Zip Code)
(504) 529-5461
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
On December 30, 1998, the Company issued the following press release:
NEW ORLEANS, LOUISIANA - On December 15, 1998, the Company was
notified that Seminole Electric Cooperative, Inc. ("SECI") had filed suit
against the Company's wholly owned subsidiary, Central Gulf Lines, Inc.
("CGL"), seeking a declaratory judgment that SECI is entitled to terminate
its performance under a long-term coal transportation agreement with CGL,
subject to SECI's obligation to pay "fair and lawful damages" to CGL. SECI
has also asked the court to determine the amount of damages payable to CGL
as a result of termination of its performance. The suit was filed in the
United States District Court for the Middle District of Florida (Case
Number 98-2561-CIV-T-25B).
The suit is in connection with an agreement entered into in 1981,
which provides for CGL to transport for SECI a minimum of 2.7 million tons
of coal annually through September 2004 by barge from Mt. Vernon, Indiana
to Port St. Joe, Florida. The agreement requires SECI to pay for the water
transportation segment of the contract on a "cost-plus" basis and the
transfer from barge to rail on a rate basis, and SECI alleges that the cost
of the contract exceeds the total cost of currently available all-rail
transportation. After failing to negotiate a buy-out of the agreement with
CGL, SECI notified CGL on December 15, 1998 that it was terminating
performance under the agreement, commencing alternative rail
transportation, and commencing litigation to confirm its ability to
terminate performance and to establish the damages owed to CGL as a result
of such termination. SECI's complaint states that it is "prepared to pay
damages to CGL properly calculated to return to CGL the value of the
profits that CGL otherwise would earn over the remaining term" of the
agreement.
CGL has disputed SECI's right to terminate performance and has served
a demand for arbitration pursuant to the terms of the agreement in which
CGL seeks specific performance of the agreement for its remaining six-year
term, and in the alternative, damages. Because of SECI's admitted
obligation to reimburse CGL for its lost profits, the Company does not
believe that this dispute will have a material adverse effect on its
financial condition or results of operations, even if SECI is successful in
terminating its performance under the agreement.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Not applicable.
(b) Exhibits - none.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERNATIONAL SHIPHOLDING CORPORATION
By: /S/ GARY L. FERGUSON
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Gary L. Ferguson
Vice President and
Chief Financial Officer
Dated: December 30, 1998
