MHI's financial backer, Boston Financial Advisors LLC, which reportedly was formed specifically to raise money for MHI, will sell bonds through an investment-banking firm it declined to identify to get the money. The company needs to put together some cash to mollify investors nervous about this risky deal and ensure that they get paid.

The method that will be used to raise this money--buying life insurance pollicies from older people--has reportedly become a source of controversy in the financial world. Essentially, life insurance policies are bought from elderly people for a certain amount of cash and then once that person dies, the company that bought the policy can cash it in.

State senator Michael Morrissey, who represents Quincy did not return calls by presstime but reportedly he stated that it is time to sell the shipyard. MHI lost control of the shipyard last year when the US Maritime Administration took it over. The shipyard is now over $70 million in debt.