ST. CATHARINES, ON, April 30, 2013 /CNW/ - Algoma Central Corporation (Algoma) announced today that the London, UK Arbitration Tribunal hearing a shipbuilding contract dispute involving Algoma Tankers International Inc., a wholly owned subsidiary of Algoma Central Corporation, has found in favour of Algoma.
"We are extremely pleased that the Tribunal agreed with the merits of our claim", said Greg Wight, President and CEO of the Corporation. "We will now proceed to make a formal demand for reimbursement of our instalment payments as provided for under the terms of the contracts."
"A lot of effort went into achieving this result," added Duncan Jackman, Chairman of the Board of Directors of Algoma. "I would like to extend my thanks to everyone involved in this for their diligence and hard work."
In 2007 the Corporation, 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 the Tribunal in London in September, 2012.
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