PITTSBURGH - August 5, 2002
Michael Baker Corporation (AMEX:BKR) announced today that it has received approximately $12.3 million of the $12.7 million previously being held in escrow as financial security for the appeal of judgments in litigation involving one of its subsidiaries, Baker Mellon Stuart Construction, Inc. (“BMSCI”) and ADF International, Inc. (“ADF”), arising out of the Universal Studios CityWalk project. The remaining amount of approximately $0.4 million, relating to an aspect of the litigation that was not contested by BMSCI, will be disbursed by the escrow agent to ADF. This liability was included in the “accrued litigation reserve” caption of the company´s balance sheet at June 30, 2002.
As the Corporation announced on February 12, 2002, the 11th Circuit Court of Appeals reversed judgments of the U.S. District Court in this matter and vacated the District Court´s award of damages. Release of the escrow was delayed due to post-judgment motions regarding recovery of attorney´s fees and the terms of the escrow.
As a result of the receipt of these funds, the company´s balance sheet will now reflect this amount, previously shown as restricted cash under the caption “litigation escrow”, as “cash and cash equivalents”. This change will be reflected in the company´s second quarter Form 10-Q, which will be filed with the Securities and Exchange Commission later this week.
Michael Baker Corporation (www.mbakercorp.com) provides engineering and energy expertise for public and private sector clients worldwide. The firm's primary services include engineering design for the transportation and civil infrastructure markets, operation and maintenance of oil and gas production facilities, architecture, environmental services, and construction management for building and transportation projects. Baker has more than 4,200 employees in over 30 offices across the United States and internationally.
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Contact: David G. Higie