Business
Algoma Central Corporation announces collection of refund guarantees on cancelled ocean tanker contracts
ST. CATHARINES, ON , Dec. 30, 2013 /CNW/ - Algoma Central Corporation (Algoma - www.alg...
About this update from Algoma Central Corporation
[{"type":"text","content":"\n\n\nST. CATHARINES, ON, Dec. 30, 2013 /CNW/ - Algoma Central Corporation\n (Algoma - www.algonet.com) is pleased to announce that it has received payments totalling $41.7\n million from two Chinese banks on refund guarantees related to the\n cancellation of three ocean tanker shipbuilding contracts which\n occurred in 2010.\n\n\n\"We are extremely pleased to announce the collection of these\n outstanding instalment refunds,\" said Greg Wight, President and CEO of\n Algoma. \"The collection process has proceeded smoothly following an\n arduous arbitration and appeal process that extended over three years\n from the date we cancelled the contracts. We would like to formally\n thank the Banks for their actions in closing these files.\"\n\n\nIn 2007, Algoma, through its wholly owned subsidiary, entered into\n contracts to build three 16,500 - deadweight ton product tankers in\n China. Each contract contained provisions that permitted cancellation\n under certain conditions. These conditions were met in 2010 and Algoma\n accordingly issued notices of rescission to the shipyard seeking to\n cancel the contracts and demanding reimbursement of the instalments\n that had been advanced. The matter was taken to arbitration by the\n shipyard and hearings were conducted before a Tribunal in London in\n September, 2012. The Arbitration Tribunal found in favour of Algoma in\n all matters in April, 2013 and the shipyard sought leave to appeal. The\n UK commercial courts rejected the shipyard's application in November\n and Algoma commenced collection action immediately thereafter.\n\n\nAbout Algoma Central Corporation\n\n\nAlgoma Central Corporation owns and operates the largest Canadian flag\n fleet of dry and liquid bulk carriers operating on the Great Lakes -\n St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers,\n seven gearless dry bulk carriers and seven product tankers. Algoma also\n has interests in ocean dry-bulk and product tanker vessels operating in\n international markets. Algoma owns a diversified ship repair and steel\n fabricating facility active in the Great Lakes and St. Lawrence regions\n of Canada. In addition, Algoma owns and manages commercial real estate\n properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.\n\n\nA recently published economic impact study, commissioned by Marine\n Deliv...