Bankruptcy judge fires First Marine president

November 02, 1990|By Jon Morgan | Jon Morgan,Evening Sun Staff

The man who opened Baltimore's only new shipyard in decades has been fired by the trustee overseeing the bankruptcy proceedings of the yard.

Dannie B. Hudson was president of the Norfolk, Va.-based First Marine Manufacturing and established its Fort McHenry operation in January. In July, the company filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy code.

Last week, the bankruptcy court put the yard under the control of a federal trustee, Terry L. Musika. Musika said he fired Hudson and Hudson's daughter and wife on Wednesday. Employees were notified yesterday.

The yard employs about 35 workers and is currently repairing four military ships. Musika said it is too soon to tell if the yard can be made viable again.

Musika declined to specify the reasons for the dismissals, saying, "There are certain things that I don't think are productive to talk about."

Hudson was unavailable yesterday at either the Baltimore or Norfolk offices of First Marine.

A. Grey Staples, an assistant U.S. trustee overseeing First Marine, said he was not aware of the firing but said it would have been unusual for Musika, whom he appointed, to keep Hudson on.

"He has the option to employ a manager and I guess arguably he could have considered Mr. Hudson, but it would have been extraordinary," Staples said.

J. Stephen Simms, an attorney representing unsecured creditors in the case, said, "I think this is a good result for the company."

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