ACLI » Topics » We are subject to, and may in the future be subject to, disputes, or legal or other proceedings that could involve significant expenditures by us.

This excerpt taken from the ACLI 10-K filed Mar 10, 2010.
We are subject to, and may in the future be subject to disputes or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability matters, environmental matters, tax matters, contract disputes and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could affect our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures. We are currently involved in several environmental matters. See “Item 3. Legal Proceedings — Environmental and Other Litigation.”
 
ITEM 1B.   UNRESOLVED STAFF COMMENTS.
 
Not applicable.
 
ITEM 2.   PROPERTIES
 
We operate numerous land-based facilities in support of our marine operations. These facilities include a major manufacturing shipyard in Jeffersonville, Indiana; terminal facilities for cargo transfer and handling at St. Louis, Missouri, Lemont, Illinois and Memphis, Tennessee; port service facilities at Lemont, Illinois, St. Louis, Missouri, Cairo, Illinois, Louisville, Kentucky, Baton Rouge, Louisiana, Vacherie, Louisiana, Harahan, Louisiana, Marrero, Louisiana and Houston, Texas; boat repair facilities at Louisville, Kentucky, St. Louis, Missouri, Harahan, Louisiana and Cairo, Illinois; and a corporate office complex in Jeffersonville, Indiana. For the properties that we lease, the majority of leases are long term agreements.
 
The map below shows the locations of our primary transportation and manufacturing facilities, along with our Inland Waterways routes.
 


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(MAP)
 
The most significant of our facilities among these properties, all of which we own, except as otherwise noted, are as follows.
 
  •  Our manufacturing segment’s shipbuilding facility in Jeffersonville, Indiana is a large single-site shipyard facility on the Inland Waterways, occupying approximately 64 acres of owned land and approximately 5,600 feet of frontage on the Ohio River. There are 32 buildings on the property comprising approximately 318,020 square feet under roof. In addition, we lease an additional four acres of land under leases expiring in 2015.
 
  •  ACLT’s coal transfer terminal in St. Louis, Missouri occupies approximately 69 acres. There are six buildings on the property comprising approximately 21,000 square feet. In addition, we lease 2,400 feet of river frontage from the City of St. Louis under a lease expiring in 2010. The lease may be terminated with one-year advance notice by ACLT. Additional parcels in use include property of BNSF under leases that either party can terminate with 30 days prior written notice.
 
  •  ACLT operates a terminal in Memphis, Tennessee that processes boat and barge waste water, direct transfer services for liquid commodities, along with tank storage services for approximately 117,000 barrels of vegetable oils. There are three buildings occupying approximately 7,000 square feet on almost three acres. ACLT leases an easement to this facility that expires in 2018. Either party may cancel the lease with 90 days prior written notice.
 
  •  ACLT’s Armant facilities located in Vacherie, Louisiana, occupies approximately 482 acres, with approximately 10,726 feet of river frontage. An additional 3,840 feet of river frontage is provided under a lease expiring in 2011. The facility provides barge fleeting and shifting, barge cleaning and repairs on the Mississippi River as part of our Gulf Fleet Operations.
 
  •  ACLT’s fleet facility in Cairo, Illinois occupies approximately 37 acres, including approximately 900 feet of owned river frontage. In addition, we lease approximately 22,400 feet of additional river frontage under various leases expiring between 2011 and 2013. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repair and topside-towboat repair.
 
  •  ACLT’s Tiger Fleet near Baton Rouge (Port Allen), Louisiana, operates on approximately 108 acres, with an estimated 3,300 feet of river frontage. An additional 13,700 lineal feet of riverfront fleeting


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  space is provided under a lease expiring in 2011. This facility provides barge fleeting and shifting services and is adjacent to our joint venture investment known as T. T. Barge Services Mile 237, L.L.C., that provides barge cleaning and repair services.
 
  •  ACLT’s facilities in St. Louis, Missouri, operates two (2) owned parcels, one being approximately 3.2 acres, with an estimated 600 linear feet of riverfront, and an additional 7.3 acres with approximately 1,393 linear feet of adjoining waterfront footage leased under an agreement expiring in 2011. The facility provides fleeting and shifting services, boat repair and maintenance, plus warehouse services for vessels.
 
  •  ACLT’s operations at Harahan, Louisiana are located on approximately 156 acres with an estimated 7,067 feet of riverfront. The facility is the base of operations for our Gulf Operations, including barge shifting and fleeting, boat and barge maintenance and repairs. An additional 4,749 lineal feet of river frontage for shifting and fleeting is leased under various leases expiring between 2011 and 2013.
 
  •  ACLT’s Houston (Channelview), Texas facility is located on approximately 32 acres with 1,796 feet of riverfront. Improvements include an estimated 6,400 square foot office building. An additional 29.4 acres of waterfront property along the Lost Lake Disposal Area, adjacent to the Houston Ship Channel, for shifting and fleeting, complements this facility, under a lease agreement expiring in 2028.
 
  •  ACLT’s facilities in Lemont, Illinois occupy approximately 81 acres, including approximately 10,000 feet of river frontage, under various leases expiring between 2011 and 2044. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repairs on the Illinois River, along with a 48,000 square foot, climate controlled warehouse, providing terminaling for bulk, non-bulk and break-bulk warehousing and stevedoring services.
 
  •  ACLT’s Marrero, Louisiana Fleet is comprised of approximately 24.9 acres of batture, providing an estimated 2,529 feet of riverfront for barge shifting and fleeting operations.
 
  •  Our corporate offices in Jeffersonville, Indiana occupy approximately 22 acres, comprising approximately 165,000 square feet of office space.
 
  •  The liquids division of our transportation segment was formerly headquartered in approximately 26,800 square feet of leased space in Houston, Texas under a lease expiring in August 2015. As discussed in Note 18 to the consolidated financial statements, the Company expects to sublease or terminate this lease in 2010, as it has relocated the work to alternative sites, including our corporate offices.
 
  •  In addition to the above properties, our wholly-owned naval architecture subsidiary operates in leased facilities consisting of approximately 10,000 square feet in Seattle, Washington and 2,200 square feet in New Orleans, Louisiana. The lease of the Seattle facility expires in September 2015. The lease of the New Orleans facility is a month-to-month commitment.
 
We believe that our facilities are suitable and adequate for our current needs.
 
ITEM 3.   LEGAL PROCEEDINGS
 
The nature of our business exposes us to the potential for legal proceedings relating to labor and employment, personal injury, property damage and environmental matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of each particular claim, as well as our current reserves and insurance coverage, we do not expect that any known legal proceeding will in the foreseeable future have a material adverse impact on our financial condition or the results of our operations.
 
This excerpt taken from the ACLI 10-K filed Mar 11, 2009.
We are subject to, and may in the future be subject to disputes, or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability


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matters, environmental matters, tax matters, contract disputes and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could affect our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures. We are currently involved in several environmental matters. See “Legal Proceedings — Environmental Litigation.”
 
ITEM 1B.   UNRESOLVED STAFF COMMENTS.
 
Not applicable.
 
ITEM 2.   PROPERTIES
 
We operate numerous land-based facilities in support of our marine operations. These facilities include a major manufacturing shipyard in Jeffersonville, Indiana; terminal facilities for cargo transfer and handling at St. Louis, Missouri and Memphis, Tennessee; port service facilities at Lemont, Illinois, St.
 
Louis, Missouri, Cairo, Illinois, Louisville, Kentucky, Baton Rouge, Louisiana, Vacherie, Louisiana, Harahan, Louisiana, Marrero, Louisiana and Houston, Texas; boat repair facilities at Louisville, Kentucky, St. Louis, Missouri, Harahan, Louisiana and Cairo, Illinois; and a corporate office complex in Jeffersonville, Indiana. For the properties that we lease, the majority of leases are long term agreements.
 
The map below shows the locations of our primary transportation and manufacturing facilities, along with our Inland Waterway routes.
 
(MAP)


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The most significant of our facilities among these properties, all of which we own, except as otherwise noted, are as follows.
 
  •  Our manufacturing segment’s shipbuilding facility in Jeffersonville, Indiana is a large single-site shipyard facility on the Inland Waterways, occupying approximately 64 acres of owned land and approximately 5,600 feet of frontage on the Ohio River. There are 32 buildings on the property comprising approximately 318,020 square feet under roof. In addition, we lease an additional four acres of land under leases expiring in 2015.
 
  •  ACLT’s coal transfer terminal in St. Louis, Missouri occupies approximately 69 acres. There are six buildings on the property comprising approximately 21,000 square feet. In addition, we lease 2,400 feet of river frontage from the City of St. Louis under a lease expiring in 2010. The lease may be terminated with one-year advance notice by ACLT. Additional parcels in use include property of BNSF under leases that either party can terminate with 30 days prior written notice.
 
  •  ACLT operates a terminal in Memphis, Tennessee that processes boat and barge waste water, direct transfer services for liquid commodities, along with tank storage services for approximately 117,000 barrels of vegetable oils. There are three buildings occupying approximately 7,000 square feet on almost three acres. ACLT leases an easement to this facility that expires in 2018. Either party may cancel the lease with 90 days prior written notice.
 
  •  ACLT’s Armant facilities located in Vacherie, Louisiana, occupies approximately 482 acres, with approximately 10,726 feet of river frontage. An additional 3,840 feet of river frontage is provided under a lease expiring in 2011. The facility provides barge fleeting and shifting, barge cleaning and repairs on the Mississippi River as part of our Gulf Fleet Operations.
 
  •  ACLT’s fleet facility in Cairo, Illinois occupies approximately 37 acres, including approximately 900 feet of owned river frontage. In addition, we lease approximately 22,400 feet of additional river frontage under various leases expiring between 2009 and 2013. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repair and topside-towboat repair.
 
  •  ACLT’s Tiger Fleet near Baton Rouge (Port Allen), Louisiana, operates on approximately 108 acres, with an estimated 3,300 feet of river frontage. An additional 13,700 lineal feet of riverfront fleeting space is provided under a lease expiring in 2011. This facility provides barge fleeting and shifting services and is adjacent to our joint venture investment known as T. T. Barge Services Mile 237, L.L.C., that provides barge cleaning and repair services.
 
  •  ACLT’s facilities in St. Louis, Missouri, operates two (2) owned parcels, one being approximately 3.2 acres, with an estimated 600 linear feet of riverfront, and an additional 7.3 acres with approximately 1,393 linear feet of adjoining waterfront footage leased under an agreement expiring in 2011. The facility provides fleeting and shifting services, boat repair and maintenance, plus warehouse services for vessels.
 
  •  ACLT’s operations at Harahan, Louisiana are located on approximately 156 acres with an estimated 7,067 feet of riverfront. The facility is the base of operations for our Gulf Operations, including barge shifting and fleeting, boat and barge maintenance and repairs. An additional 4,749 lineal feet of river frontage for shifting and fleeting is leased under various leases expiring between 2011 and 2013.
 
  •  ACLT’s Houston (Channelview), Texas facility is located on approximately 32 acres with 1,796 feet of riverfront. Improvements include an estimated 6,400 square foot office building. An additional 29.4 acres of waterfront property along the Lost Lake Disposal Area, adjacent to the Houston Ship Channel, for shifting and fleeting, compliments this facility, under a lease agreement expiring in 2028.
 
  •  ACLT’s facilities in Lemont, Illinois occupy approximately 81 acres, including approximately 10,000 feet of river frontage, under various leases expiring between 2011 and 2044. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repairs on the Illinois River, along with a 48,000 square foot, climate controlled warehouse, providing terminaling for bulk, non-bulk and break-bulk warehousing and stevedoring services.


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  •  ACLT’s Marrero, Louisiana Fleet is comprised of approximately 24.9 acres of batture, providing an estimated 2,259 feet of riverfront for barge shifting and fleeting operations.
 
  •  Our corporate offices in Jeffersonville, Indiana occupy approximately 22 acres, comprising approximately 165,000 square feet of office space.
 
  •  The liquids division of our transportation segment is headquartered in approximately 26,800 square feet of leased space in Houston, Texas under a lease expiring in August 2015. As discussed in Note 17 to the consolidated financial statements, the Company expects to sublease or terminate this lease in 2009, relocating the work to alternative sites, including its corporate offices.
 
  •  In addition to the above properties, our wholly-owned naval architecture subsidiary operates in leased facilities consisting of approximately 10,000 square feet in Seattle, Washington and 2,200 square feet in New Orleans, Louisiana. The lease of the Seattle facility expires in September 2015. The lease of the New Orleans facility is a month-to-month commitment. Our wholly-owned civil and environmental remediation contractor is headquartered on 3.4 acres housing an approximately 13,500 square foot office building and garage.
 
We believe that our facilities are suitable and adequate for our current needs.
 
ITEM 3.   LEGAL PROCEEDINGS
 
The nature of our business exposes us to the potential for legal proceedings relating to labor and employment, personal injury, property damage and environmental matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of each particular claim, as well as our current reserves and insurance coverage, we do not expect that any known legal proceeding will in the foreseeable future have a material adverse impact on our financial condition or the results of our operations.
 
These excerpts taken from the ACLI 10-K filed Feb 27, 2008.
We are subject to, and may in the future be subject to disputes, or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability matters, environmental matters, tax matters and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could affect our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures. We are currently involved in several environmental matters. See “Legal Proceedings — Environmental Litigation.”
 
ITEM 1B.   UNRESOLVED STAFF COMMENTS.
 
Not applicable.
 
ITEM 2.   PROPERTIES.
 
We operate numerous land-based facilities in support of our marine operations. These facilities include a major manufacturing shipyard in Jeffersonville, Indiana; terminal facilities for cargo transfer and handling at St. Louis, Missouri and Memphis, Tennessee; port service facilities at Lemont, Illinois, St. Louis, Missouri, Cairo, Illinois, Louisville, Kentucky, Baton Rouge, Louisiana, Vacherie, Louisiana, Harahan, Louisiana, Marrero, Louisiana and Houston, Texas; boat repair facilities at Louisville, Kentucky, St. Louis, Missouri, Harahan, Louisiana and Cairo, Illinois; and a corporate office complex in Jeffersonville, Indiana. In 2007 we opened a liquids division headquarters facility in Houston, Texas. For the properties that we lease, the majority of leases are long term agreements.


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The map below shows the locations of our primary transportation and manufacturing facilities, along with our Inland Waterway routes.
 
(PIE CHART)
 
The most significant of our facilities among these properties, all of which we own, except as otherwise noted, are as follows.
 
  •  Our manufacturing segment’s shipbuilding facility in Jeffersonville, Indiana is a large single-site shipyard facility on the Inland Waterways, occupying approximately 64 acres of owned land and approximately 5,600 feet of frontage on the Ohio River. There are 32 buildings on the property comprising approximately 318,020 square feet under roof. In addition, we lease an additional four acres of land under leases expiring in 2015.
 
  •  ACLT’s coal transfer terminal in St. Louis, Missouri occupies approximately 69 acres. There are six buildings on the property comprising approximately 21,000 square feet. In addition, we lease 2,400 feet of river frontage from the City of St. Louis under a lease expiring in 2010. The lease may be terminated with one-year advance notice by ACLT. Additional parcels in use include property of BNSF under leases that either party can terminate with 30 days prior written notice.
 
  •  ACLT operates a terminal in Memphis, Tennessee that processes boat and barge waste water. There are three buildings occupying approximately 7,000 square feet on almost three acres. ACLT leases an easement to this facility that expires in 2018. Either party may cancel the lease with 90 days prior written notice.
 
  •  ACLT’s fleet facility in Cairo, Illinois occupies approximately 37 acres, including approximately 900 feet of owned river frontage. In addition, we lease approximately 22,400 feet of additional river frontage under various leases expiring between 2008 and 2013. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repair and topside-towboat repair.


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  •  ACLT’s fleet facilities in Lemont, Illinois occupy approximately 81 acres, including approximately 10,000 feet of river frontage, under various leases expiring between 2011 and 2044. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repairs on the Illinois River.
 
  •  Our corporate offices in Jeffersonville, Indiana occupy approximately 22 acres, comprising approximately 165,000 square feet of office space.
 
  •  The liquids division of our transportation segment is headquartered in approximately 26,800 square feet of leased space in Houston, Texas under a lease expiring in August 2015.
 
  •  In addition to the above properties, our wholly-owned naval architecture subsidiary operates in leased facilities consisting of approximately 10,000 square feet in Seattle, Washington and 2,200 square feet in New Orleans, Louisiana. The lease of the Seattle facility expires in September 2015. The lease of the New Orleans facility is a month-to-month commitment.
 
We believe that our facilities are suitable and adequate for our current needs.
 
ITEM 3.   LEGAL PROCEEDINGS.
 
The nature of our business exposes us to the potential for legal proceedings relating to labor and employment, personal injury, property damage and environmental matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of each particular claim, as well as our current reserves and insurance coverage, we do not expect that any known legal proceeding will in the foreseeable future have a material adverse impact on our financial condition or the results of our operations.
 
Environmental Litigation.  As of December 31, 2007 we were involved in the following matters relating to the investigation or remediation of locations where hazardous materials have or might have been released or where we or our vendors have arranged for the disposal of wastes. These matters include situations in which we have been named or are believed to be a potentially responsible party (“PRP”) under applicable federal and state laws.
 
Barge Cleaning Facilities, Port Arthur, Texas.  American Commercial Barge Line LLC received notices from the U.S. EPA in 1999 and 2004 that it is a potentially responsible party at the State Marine of Port Arthur and the Palmer Barge Line Superfund Sites in Port Arthur, Texas with respect to waste from barge cleaning at the two sites in the early 1980s. With regard to the Palmer Barge Line Superfund Site, we have entered into an agreement in principle with the PRP group for all PRP cleanup costs.
 
PHI/Harahan Site, Harahan, Louisiana.  We were contacted in July 2005 by the State of Louisiana Department of Environmental Quality (“DEQ”) in connection with the investigation and cleanup of diesel and/or jet fuel in soil at this site. We believe the contamination was caused by a tenant on the property and have so notified DEQ. We completed a site investigation and a summary report has been submitted to the state. Based upon reported levels, it is unknown whether cleanup will be required. In January 2008, we requested and received from DEQ a No Further Action At This Time letter. We, therefore have no reserve for further costs in connection with this site.
 
We are
subject to, and may in the future be subject to disputes, or
legal or other proceedings that could involve significant
expenditures by us.



 



The nature of our business exposes us to the potential for
disputes or legal or other proceedings from time to time
relating to labor and employment matters, personal injury and
property damage, product liability matters, environmental
matters, tax matters and other matters. Specifically, we are
subject to claims on cargo damage from our customers and injury
claims from our vessel personnel. These disputes, individually
or collectively, could affect our business by distracting our
management from the operation of our business. If these disputes
develop into proceedings, these proceedings, individually or
collectively, could involve significant expenditures. We are
currently involved in several environmental matters. See
“Legal Proceedings — Environmental
Litigation.”


 















ITEM 1B.  

UNRESOLVED
STAFF COMMENTS.



 



Not applicable.


 















ITEM 2.  

PROPERTIES.


 



We operate numerous land-based facilities in support of our
marine operations. These facilities include a major
manufacturing shipyard in Jeffersonville, Indiana; terminal
facilities for cargo transfer and handling at St. Louis,
Missouri and Memphis, Tennessee; port service facilities at
Lemont, Illinois, St. Louis, Missouri, Cairo, Illinois,
Louisville, Kentucky, Baton Rouge, Louisiana, Vacherie,
Louisiana, Harahan, Louisiana, Marrero, Louisiana and Houston,
Texas; boat repair facilities at Louisville, Kentucky,
St. Louis, Missouri, Harahan, Louisiana and Cairo,
Illinois; and a corporate office complex in Jeffersonville,
Indiana. In 2007 we opened a liquids division headquarters
facility in Houston, Texas. For the properties that we lease,
the majority of leases are long term agreements.





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The map below shows the locations of our primary transportation
and manufacturing facilities, along with our Inland Waterway
routes.


 



(PIE CHART)


 



The most significant of our facilities among these properties,
all of which we own, except as otherwise noted, are as follows.


 














































  • 

Our manufacturing segment’s shipbuilding facility in
Jeffersonville, Indiana is a large single-site shipyard facility
on the Inland Waterways, occupying approximately 64 acres
of owned land and approximately 5,600 feet of frontage on
the Ohio River. There are 32 buildings on the property
comprising approximately 318,020 square feet under roof. In
addition, we lease an additional four acres of land under leases
expiring in 2015.
 
  • 

ACLT’s coal transfer terminal in St. Louis, Missouri
occupies approximately 69 acres. There are six buildings on
the property comprising approximately 21,000 square feet.
In addition, we lease 2,400 feet of river frontage from the
City of St. Louis under a lease expiring in 2010. The lease
may be terminated with one-year advance notice by ACLT.
Additional parcels in use include property of BNSF under leases
that either party can terminate with 30 days prior written
notice.
 
  • 

ACLT operates a terminal in Memphis, Tennessee that processes
boat and barge waste water. There are three buildings occupying
approximately 7,000 square feet on almost three acres. ACLT
leases an easement to this facility that expires in 2018. Either
party may cancel the lease with 90 days prior written
notice.
 
  • 

ACLT’s fleet facility in Cairo, Illinois occupies
approximately 37 acres, including approximately
900 feet of owned river frontage. In addition, we lease
approximately 22,400 feet of additional river frontage
under various leases expiring between 2008 and 2013. This
facility provides the base of operations for our barge fleeting
and shifting, barge cleaning and repair and topside-towboat
repair.





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  • 

ACLT’s fleet facilities in Lemont, Illinois occupy
approximately 81 acres, including approximately
10,000 feet of river frontage, under various leases
expiring between 2011 and 2044. This facility provides the base
of operations for our barge fleeting and shifting, barge
cleaning and repairs on the Illinois River.
 
  • 

Our corporate offices in Jeffersonville, Indiana occupy
approximately 22 acres, comprising approximately
165,000 square feet of office space.
 
  • 

The liquids division of our transportation segment is
headquartered in approximately 26,800 square feet of leased
space in Houston, Texas under a lease expiring in August 2015.
 
  • 

In addition to the above properties, our wholly-owned naval
architecture subsidiary operates in leased facilities consisting
of approximately 10,000 square feet in Seattle, Washington
and 2,200 square feet in New Orleans, Louisiana. The lease
of the Seattle facility expires in September 2015. The lease of
the New Orleans facility is a
month-to-month
commitment.


 



We believe that our facilities are suitable and adequate for our
current needs.


 















ITEM 3.  

LEGAL
PROCEEDINGS.



 



The nature of our business exposes us to the potential for legal
proceedings relating to labor and employment, personal injury,
property damage and environmental matters. Although the ultimate
outcome of any legal matter cannot be predicted with certainty,
based on present information, including our assessment of the
merits of each particular claim, as well as our current reserves
and insurance coverage, we do not expect that any known legal
proceeding will in the foreseeable future have a material
adverse impact on our financial condition or the results of our
operations.


 



Environmental Litigation.  As of
December 31, 2007 we were involved in the following matters
relating to the investigation or remediation of locations where
hazardous materials have or might have been released or where we
or our vendors have arranged for the disposal of wastes. These
matters include situations in which we have been named or are
believed to be a potentially responsible party (“PRP”)
under applicable federal and state laws.


 



Barge Cleaning Facilities, Port Arthur,
Texas.
  American Commercial Barge Line LLC
received notices from the U.S. EPA in 1999 and 2004 that it
is a potentially responsible party at the State Marine of Port
Arthur and the Palmer Barge Line Superfund Sites in Port Arthur,
Texas with respect to waste from barge cleaning at the two sites
in the early 1980s. With regard to the Palmer Barge Line
Superfund Site, we have entered into an agreement in principle
with the PRP group for all PRP cleanup costs.


 



PHI/Harahan Site, Harahan, Louisiana.  We were
contacted in July 2005 by the State of Louisiana Department of
Environmental Quality (“DEQ”) in connection with the
investigation and cleanup of diesel
and/or jet
fuel in soil at this site. We believe the contamination was
caused by a tenant on the property and have so notified DEQ. We
completed a site investigation and a summary report has been
submitted to the state. Based upon reported levels, it is
unknown whether cleanup will be required. In January 2008, we
requested and received from DEQ a No Further Action At This Time
letter. We, therefore have no reserve for further costs in
connection with this site.


 




This excerpt taken from the ACLI 10-Q filed Nov 7, 2007.
We are subject to, and may in the future be subject to disputes, or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability matters, environmental matters, tax matters and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could affect our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures. We are currently involved in several environmental matters (See “Legal Proceedings — Environmental Litigation).”
 
ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
On June 11, 2007, the Company announced a $200 million stock repurchase program and on August 14, 2007 an additional $150 million stock repurchase program (the “Stock Repurchase Programs”). Under the Stock Repurchase Programs the Company was authorized to acquire from time to time up to an aggregate of $350 million in Common Stock. The $200 million Stock Repurchase Program was completed in July, 2007. Through September 30, 2007 $100 million of the $150 million Stock Repurchase Program had been completed.
 
Below is a summary of the Company’s purchases of its Common Stock during the three months ended September 30, 2007 under the Stock Repurchase Programs.
 
                 
    Total Number of
    Average Price
 
    Shares Purchased     per Share  
    (In thousands)  
 
Common Stock — July
    2,200       26.45  
Common Stock — August
    3,507       23.38  
Common Stock — September
    723       24.90  
                 
Total Shares Repurchased
    6,430          
                 
 
The remaining authorized amount at September 30, 2007 was approximately $50 million.


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ITEM 6.   EXHIBITS.
 
         
Exhibit
   
No.
 
Description
 
  10 .1   Amendment No. 2 to the Credit Agreement, dated April 27, 2007, by and among American Commercial Lines LLC, Jeffboat LLC, and ACL Transportation Services LLC, and Wells Fargo Bank, National Association as administrative agent, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as co-syndication agents, Fortis Capital Corp. and LaSalle Bank National Association as co-documentation agents, and Branch Banking and Trust Company, Fifth Third Bank, National City Bank, PNC Bank National Association, SunTrust Bank, U.S. Bank National Association, and Wachovia Bank, N.A. as syndicate members (Incorporated by reference to Exhibit 10.1 to the Current Report of American Commercial Lines Inc. on Form 8-K (File No. 000-51562) filed with the Securities and Exchange Commission on August 23, 2007.
  10 .2   Amendment No. 3 to the Credit Agreement, dated April 27, 2007, by and among American Commercial Lines LLC, Jeffboat LLC, and ACL Transportation Services LLC, and Wells Fargo Bank, National Association as administrative agent, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as co-syndication agents, Fortis Capital Corp. and LaSalle Bank National Association as co-documentation agents, and Branch Banking and Trust Company, Fifth Third Bank, National City Bank, PNC Bank National Association, SunTrust Bank, U.S. Bank National Association, and Wachovia Bank, N.A. as syndicate members (Incorporated by reference to Exhibit 10.2 to the Current Report of American Commercial Lines Inc. on Form 8-K (File No. 000-51562) filed with the Securities and Exchange Commission on August 23, 2007.
  31 .1   Certification by Mark R. Holden, Chief Executive Officer, required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
  31 .2   Certification by Christopher A. Black, Chief Financial Officer, required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
  32 .1   Certification by Mark R. Holden, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350.
  32 .2   Certification by Christopher A. Black, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350.


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This excerpt taken from the ACLI 10-Q filed Aug 7, 2007.
We are subject to, and may in the future be subject to disputes, or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability matters, environmental matters, tax matters and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could affect our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures. We are currently involved in two environmental matters. See “Legal Proceedings — Environmental Litigation.”
 
ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
On June 11, 2007, the Company announced a stock repurchase program under which the Company is authorized to acquire from time to time up to an aggregate of $200 million in Common Stock (the “Stock Repurchase Program”).
 
Below is a summary of the Company’s purchases of its Common Stock during the three months ended June 30, 2007 under the Stock Repurchase Program, all of which occurred in June.
                         
                Total Number of Shares
 
    Total Number of
          Purchased as Part of Publicly
 
    Shares Purchased
    Average Price
    Announced Programs
 
    (in thousands)     per Share     (in thousands)  
 
June 11 to June 30
    5,624     $ 25.23       5,624  
 
The remaining authorized amount at June 30, 2007 was approximately $58.1 million.
 
We are subject to, and may in the future be subject to, disputes, or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability matters, environmental matters, tax matters and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could harm our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures by us. We are currently involved in two environmental matters. See “Legal Proceedings — Environmental Litigation.”
 
We are subject to, and may in the future be subject to, disputes, or legal or other proceedings that could involve significant expenditures by us.
 
The nature of our business exposes us to the potential for disputes or legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, product liability matters, environmental matters, tax matters and other matters. Specifically, we are subject to claims on cargo damage from our customers and injury claims from our vessel personnel. These disputes, individually or collectively, could harm our business by distracting our management from the operation of our business. If these disputes develop into proceedings, these proceedings, individually or collectively, could involve significant expenditures by us. We are currently involved in two environmental matters. See “Legal Proceedings — Environmental Litigation.”


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ITEM 1B.   UNRESOLVED STAFF COMMENTS.
 
Not applicable.
 
ITEM 2.   PROPERTIES
 
We operate numerous land-based facilities in support of our marine operations. These facilities include a major manufacturing shipyard in Jeffersonville, Indiana; terminal facilities for cargo transfer and handling at St. Louis, Missouri and Memphis, Tennessee; port service facilities at Lemont, Illinois, St. Louis, Missouri, Cairo, Illinois, Louisville, Kentucky, Baton Rouge, Louisiana, Vacherie, Louisiana, Harahan, Louisiana, Marrero, Louisiana and Houston, Texas; boat repair facilities at Louisville, Kentucky, St. Louis, Missouri, Harahan, Louisiana and Cairo, Illinois; and a corporate office complex in Jeffersonville, Indiana. For the properties that we lease, the majority of leases are long term agreements.
 
The map below shows the locations of our primary facilities, along with our Inland Waterway routes.
 
(PIE CHART)
 
The most significant of our facilities among these properties, all of which we own, except as otherwise noted, are as follows:
 
  •  Our manufacturing segment’s shipbuilding facility in Jeffersonville, Indiana is a large single-site shipyard facility on the Inland Waterways, occupying approximately 64 acres of owned land and approximately 5,600 feet of frontage on the Ohio River. There are 32 buildings on the property comprising approximately 318,020 square feet under roof. In addition, we lease an additional four acres of land under leases expiring in 2015.
 
  •  ACLT’s coal transfer terminal in St. Louis, Missouri occupies approximately 69 acres. There are six buildings on the property comprising approximately 21,000 square feet. In addition, we lease 2,400 feet of river frontage from the City of St. Louis under a lease expiring in 2010. The lease may be terminated with one year advance notice by ACLT. Additional parcels in use include property of BNSF under leases that either party can terminate with 30 days prior written notice.
 
  •  ACLT also operates a terminal in Memphis, Tennessee that processes barge waste water. There are three buildings occupying approximately 7,000 square feet on almost three acres. ACLT leases an easement to this facility that expires in 2018. Either party may cancel the lease with 90 days prior written notice.


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  •  ACLT’s fleet facility in Cairo, Illinois occupies approximately 37 acres, including approximately 900 feet of owned river frontage. In addition, we lease approximately 25,000 feet of additional river frontage under various leases expiring between 2007 and 2013. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repair and topside-towboat repair.
 
  •  ACLT’s fleet facilities in Lemont, Illinois occupy approximately 81 acres, including approximately 10,000 feet of river frontage, under various leases expiring between 2021 and 2051. This facility provides the base of operations for our barge fleeting and shifting, barge cleaning and repairs on the Illinois River.
 
  •  Our corporate offices in Jeffersonville, Indiana occupy approximately 22 acres, comprising approximately 165,000 square feet.
 
We believe that our facilities are suitable and adequate for our current needs.
 
ITEM 3.   LEGAL PROCEEDINGS.
 
The nature of our business exposes us to the potential for legal or other proceedings from time to time relating to labor and employment matters, personal injury and property damage, environmental matters and other matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of each particular claim, as well as our current reserves and insurance coverage, we do not expect that any legal proceeding pending on the date hereof will have a material adverse impact on our financial condition or the results of our operations in the foreseeable future.
 
We were involved in the following bankruptcy related matter:
 
Miller Appeal.  On December 30, 2004, the U.S. Bankruptcy Court, Southern District of Indiana (“Bankruptcy Court”) entered an order confirming the Company’s Chapter 11 Plan of Reorganization (“Plan of Reorganization”). On January 19, 2005, two related holders of PIK Notes, MilFam II LP and Trust A-4 (“Miller Entities”), filed a notice of appeal in the U.S. District Court for the Southern District of Indiana (“District Court”) challenging the Bankruptcy Court’s confirmation of the Plan of Reorganization. Additionally, the Miller Entities sought a limited stay of the Bankruptcy Court’s Confirmation Order. The Bankruptcy Court denied the Miller Entities’ request for a limited stay.
 
On March 30, 2006, the District Court dismissed the appeal. On April 28, 2006, the Miller Entities filed their notice of appeal to the U.S. Court of Appeals for the Seventh Circuit (the “Court of Appeals”). By agreement of the parties, the matter was settled. The Court of Appeals dismissed the matter on December 20, 2006.
 
Environmental Litigation.  As of December 31, 2006, we were involved in the following matters relating to the investigation or remediation of locations where hazardous materials have or might have been released or where we or our vendors have arranged for the disposal of wastes. These matters include situations in which we have been named or are believed to be “potentially responsible parties” under CERCLA or state laws or OPA 90 in connection with contamination of these sites. As of December 31, 2006, we had reserves totaling approximately $0.05 million, collectively, for these environmental matters.
 
  •  Barge Cleaning Facilities, Port Arthur, Texas.  American Commercial Barge Line LLC received notices from the U.S. EPA in 1999 and 2004 that it is a potentially responsible party at the State Marine of Port Arthur and the Palmer Barge Line Superfund Sites in Port Arthur, Texas with respect to waste from barge cleaning at the two sites in the early 1980s. With regard to the Palmer Barge Line Superfund Site, in 2006 the U.S. EPA requested that American Commercial Barge Line LLC enter into a consent decree for past and future cleanup. We cannot quantify the exposure, if any, that the Company may encounter as a result of the notice, nor the request for the consent decree.
 
  •  PHI/ Harahan Site, Harahan, Louisiana.  We have been contacted by the State of Louisiana in connection with the investigation and cleanup of diesel and/or jet fuel in soil at this site. We believe contamination may have been caused by a tenant on the property and have so notified the regulatory


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  authorities. In November 2006, the State of Louisiana notified us that we should proceed with our earlier-submitted investigation work plan. We do not know what level of fuel may be discovered in this investigation or whether cleanup will be required. We have paid approximately $0.02 million in consultant fees related to investigation at this site. We have reserved $0.05 million for the investigation work plan that is scheduled for completion in 2007.
 
ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
 
No matters were submitted to a vote of security holders during the fourth quarter of fiscal year 2006.
 
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