Port of South Louisiana says it’s in final talks to buy Avondale; officials tight-lipped on price

The Port of South Louisiana said Friday that it has completed its due diligence and is in final negotiations with T. Parker Host over its potential purchase of the former Avondale shipyard.

The port also said that it is aiming to seek financing for the deal from the Louisiana State Bond Commission in September if final terms can be reached. Officials did not reveal, however, what price is currently being discussed.

The port initially announced in January its intention to buy the former shipyard for $445 million.

However, the price tag for Avondale, once one of the state’s largest employers, drew immediate criticism from some senior industry executives and politicians.

In a press release Tuesday, the port said those studies have been completed.

If terms can be agreed upon, the port will seek approval from the State Bond Commission for the financing, potentially at its September meeting, the release said.

Commission approval

The State Bond Commission’s 14 members, which including Gov. Edwards, must sign off on financing for the deal.

The commission includes several members who are running for office, including state Treasurer John Schroder and Attorney General Jeff Landry, both running for governor, and House Speaker Clay Schexnayder, who is running to be Secretary of State.

If the port plans to present its case at the bond commission meeting on Sept. 21 it must submit all of its final reports by Aug. 22.

Port of South Louisiana CEO Paul Matthews said he’s hopeful the deal will be approved.

“Since the beginning of this process, we have been committed to ensuring that this deal is a win for the State of Louisiana,” Matthews said in the release. “This exciting new chapter under the Port’s ownership will foster further development, attract investment from across the globe and create high quality jobs for Louisiana families. We look forward to working with Host to get across the finish line.”