(TSX : ALC)
ST. CATHARINES, ON, July 20, 2016 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) announced today that the London, UK Arbitration Tribunal hearing a contract dispute involving a fourth and final shipbuilding contract between Algoma and Nantong Mingde Heavy Industries Stock Co. Ltd., has found in favour of Algoma.
"With the resolution of the final refund claim against Mingde decided in our favour, we can now devote our full attention to building the vessels that we have ordered to replace the ones that Mingde did not complete," said Ken Bloch Soerensen, President and CEO of the Corporation. "We have begun collection procedings for this final Mingde refund guarantee and expect to have this matter fully behind us in the near future"
The Company entered into contracts in 2010 to build six Equinox Class bulk freighters to replace aging ships in Algoma's domestic dry-bulk fleet. As a result of the bankruptcy of the shipyard, only two of these vessels have been delivered and the Company cancelled the four remaining contracts. Tribunal decisions in Algoma's favour were received on all four cancellations.
About Algoma Central Corporation
Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including 13 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. The Company has announced contracts for seven new Equinox Class domestic dry-bulk vessels as part of its on-going fleet renewal program. Algoma also owns four ocean dry-bulk vessels operating in international markets and has a 50% in three other oceans dry-bulk vessels. Algoma provides ship management services for other ship owners and owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In 2016, Algoma announced a new strategic initiative to grow into attractive global niche markets, beginning with a fifty percent interest in a pneumatic cement carrier business.
SOURCE Algoma Central Corporation
For further information: Ken Bloch Soerensen, President and CEO, 905-687-7885; Peter D. Winkley, CPA, CA, Vice President, Finance and CFO, 905-687-7897