MARAD APPROVES FARRELL DEAL

MARAD APPROVES FARRELL DEAL    The U.S. Maritime Administration has approved the merger of Farrell Lines Inc. with P & O Nedlloyd Acquisition Corp., a U.S. subsidiary of U.K.-based P&O Nedlloyd Ltd.
'    According to the approved agreement, Farrell will spin off FLI Ships Inc., its wholly owned subsidiary, and rename the company E Ships, MarAd said. “This will be accomplished through the transfer of FLI/E Ships stock to E-Class Holdings Inc., a new independent corporation, which will become the parent of E Ships.
   “After the merger with P&O Nedlloyd Acquisition, Farrell will become the successor entity of the merger and a wholly owned subsidiary” of the British parent company P&O Nedlloyd Ltd., MarAd said.
   MarAd's approval, granted by acting Maritime Administrator John E. Graykowski, includes the transfer of three Maritime Security Program operating agreements to E Ships, for three containerships owned by FLI, the Endeavor, Endurance and Enterprise.
'    MarAd said that E Ships will use former Farrell employees for its operating personnel, and time charter its vessels to Farrell for operation.
   Two other MSP ships, the Chesapeake Bay and the Delaware Bay, owned by First American Bulk Carriers Corp., will continue to sail under time charters with Farrell.