Saved by RFC

By a lifeline's breadth, the best-known U.S. shipping company last week was pulled out of a bad financial mess. In its 39-year history, International Mercantile Marine Co. has carried more passengers than any other U.S. line, operated crack ocean greyhounds like the Leviathan, Washington, Manhattan, America. But last week, with a $11,469,000 bond issue due Oct. 1, I.M.M. did not have nearly enough cash to meet it. Suddenly RFC jumped in, lent I.M.M. enough to pay off the entire issue.

RFC drove a hard bargain. The agency had already said I.M.M. must : 1) recapitalize; 2) dissolve two big subsidiaries;...

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