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: July 9, 1998
MARINE TRANSPORT CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware No.: 001-10583 13-2625280
_______________________________________________________________________
(State or other (Commission (I.R.S. employer
jurisdiction of file number) identification number)
incorporation)
1200 Harbor Boulevard, Weehawken, NJ 07087
____________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (201) 330-0200
______________________________________________________________
(Former name or former address, if changed since last report)
Page 1 of 6
Exhibit Index on Page 4
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Item 5. Other Events.
On July 9, 1998, the Registrant issued a press release relating to
contracts with the Maritime Administration of the U.S. Department of
Transportation and the disallowance by the Internal Revenue Service of certain
investment tax credits, which press release is attached hereto as Exhibit 99.1.
Item 7. Financial Statements and Exhibits.
c) Exhibits.
99.1 Press Release dated July 9, 1998.
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SIGNATURE
Pursuant to requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MARINE TRANSPORT CORPORATION
By: /s/ Mark L. Filanowski
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Name: Mark L. Filanowski
Title: Senior Vice President
Dated: July 10, 1998
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Exhibit Index Page
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99.1 Press Release dated June 17, 1998. 5
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Marine Transport Corporation Announces
Change in MARAD Contracts
Claim by Internal Revenue Service
New York - July 9, 1998 - Marine Transport Corporation ("MTC") (Nasdaq: MTLX)
announced today that the Maritime Administration of the U.S. Department of
Transportation ("MARAD"), because of an error on their part in the bidding
process, has rescinded all contract awards made in mid-June 1998 covering 89
ships and will reopen discussions with all 19 bidders. As announced June 17,
1998, MTC's subsidiary Marine Transport Lines ("MTL") had been awarded long term
contracts by MARAD for the operation of 10 ships, replacing a previous contract
which covered nine ships. Until the new bidding process is completed, MTL will
continue with the existing terms of the management contract covering nine ships.
At the time of the MARAD contract awards in June, OMI Ship Management, another
subsidiary company now known as Intrepid Ship Management ("Intrepid"), was not
awarded any contracts although it had previously managed nine ships for MARAD.
The latest development at MARAD means that Intrepid will continue to manage
those ships for the government until the re-bidding is complete, and should have
an opportunity to participate in this new bidding process.
Richard du Moulin, Chairman and Chief Executive Officer of Marine Transport
Corporation, said "Although we are surprised by this unusual event, we are
confident that our proven capability in ship management for the government
dating back to the World Wars, and our
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excellent working relationship with MARAD, should enable us to be highly
competitive in whatever process MARAD utilizes for contract awards."
In an unrelated and previously disclosed matter, the Company announced that the
Internal Revenue Service ("IRS") has disallowed certain investment tax credits
claimed by a subsidiary of a commercial bank ("Bank") relating to the vessel
MARINE RELIANCE. The MARINE RELIANCE was formerly chartered by a subsidiary of
MTC and under the charter arrangement MTC is required to indemnify the Bank for
any amounts that the Bank would be required to pay the IRS as a result of a
disallowance of investment tax credits. While the IRS has not issued a final
determination of the amounts it is seeking, the Bank has advised MTC that the
potential liability (including interest) was approximately $4.8 million as of
December 31, 1997. The Bank and MTC will continue to contest the amounts sought
by the IRS.
MTC is a U.S.-based supplier of marine transportation services. Excluding the
MARAD contracts, MTC owns and/or manages 21 ships, 6 supply vessels and 5
chartered-in vessels, making it one of the largest U.S.-based fleets of ocean
going vessels. MTC's core business is industrial shipping based on long-term
alliances, some as long as 50 years, with leading chemical and energy customers.
As an operator with International Safety Management (ISM) certification, MTC is
able to provide services to support U.S. and international shipping expansion
for quality-conscious commercial and U.S. government customers.
Contact: Mark L. Filanowski
Marine Transport Corporation
201) 330-0200 ext. 203
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