ST. CATHARINES, ON, Dec. 30, 2013 /CNW/ - Algoma Central Corporation
(Algoma - www.algonet.com) is pleased to announce that it has received payments totalling $41.7
million from two Chinese banks on refund guarantees related to the
cancellation of three ocean tanker shipbuilding contracts which
occurred in 2010.
"We are extremely pleased to announce the collection of these
outstanding instalment refunds," said Greg Wight, President and CEO of
Algoma. "The collection process has proceeded smoothly following an
arduous arbitration and appeal process that extended over three years
from the date we cancelled the contracts. We would like to formally
thank the Banks for their actions in closing these files."
In 2007, Algoma, through its wholly owned subsidiary, entered into
contracts to build three 16,500 - deadweight ton product tankers in
China. Each contract contained provisions that permitted cancellation
under certain conditions. These conditions were met in 2010 and Algoma
accordingly issued notices of rescission to the shipyard seeking to
cancel the contracts and demanding reimbursement of the instalments
that had been advanced. The matter was taken to arbitration by the
shipyard and hearings were conducted before a Tribunal in London in
September, 2012. The Arbitration Tribunal found in favour of Algoma in
all matters in April, 2013 and the shipyard sought leave to appeal. The
UK commercial courts rejected the shipyard's application in November
and Algoma commenced collection action immediately thereafter.
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag
fleet of dry and liquid bulk carriers operating on the Great Lakes -
St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers,
seven gearless dry bulk carriers and seven product tankers. Algoma also
has interests in ocean dry-bulk and product tanker vessels operating in
international markets. Algoma owns a diversified ship repair and steel
fabricating facility active in the Great Lakes and St. Lawrence regions
of Canada. In addition, Algoma owns and manages commercial real estate
properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
A recently published economic impact study, commissioned by Marine
Delivers, demonstrates the significant role that the Great Lakes /
Seaway system plays in supporting the Canadian and U.S. economies.
Some 227,000 jobs and $35 billion in economic activity are supported by
the movement of goods within the Great Lakes / St. Lawrence Waterway.
For more information, including access to the full text of the economic
impact study, please consult the www.marinedelivers.com website.
SOURCE: Algoma Central Corporation
For further information:
Greg D. Wight, FCA
President and Chief Executive Officer
Peter D. Winkley, CA
Vice President, Finance and Chief Financial Officer