(TSX : ALC)
ST. CATHARINES, ON,
Feb. 16, 2016 /CNW/ - Algoma
Central Corporation ("Algoma" – www.algonet.com) announced today
that the London, UK
Arbitration Tribunal hearing a contract dispute involving three
shipbuilding contracts between Algoma and Nantong Mingde Heavy
Industries Stock Co. Ltd., has found in favour of Algoma.
"We are extremely pleased that the Tribunal has acted quickly to
decide on this matter, given the bankruptcy of the shipyard", said
Ken Bloch Soerensen, 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. The funds intended for these
ships will be redirected towards investment in replacement fleet
renewal contracts that we have announced in recent months."
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 has
cancelled the four remaining contracts. This Tribunal decision has
resolved three of the outstanding claims and claims for the
remaining contract are being pursued.
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 18 self-unloading dry-bulk carriers,
seven gearless dry bulk carriers and seven product tankers. The
Company has announced contracts for seven domestic dry-bulk vessels
as part of its on-going fleet renewal program. Algoma also has
interests in ocean dry-bulk vessels operating in international
markets. 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.
SOURCE Algoma Central Corporation