(TSX : ALC)
ST. CATHARINES, ON,
March 31, 2016 /CNW/ - Algoma Central
Corporation ("Algoma" – www.algonet.com) is pleased to announce
that it has received payments totalling US$53.4 million from refund guarantees
related to the cancellation of three shipbuilding contracts. The
refund of amounts paid on a fourth shipbuilding contract remains
subject to arbitration.
"We are extremely pleased to announce the collection of these
outstanding instalment refunds", said Peter
Winkley, Vice-President and CFO of Algoma. "The collection
process proceeded smoothly once the shipyard and its
representatives ceased to pursue their arbitration of our
cancellation of the contracts. We would like to formally thank the
refund guarantee bank for their actions in closing these
files."
Algoma entered into contracts in 2010 to build eight Equinox
Class dry-bulk carriers in China.
Only three of the contracted vessels were completed and Algoma took
steps to cancel the contracts and collect a refund of the related
construction instalments. In conjunction with cancelling the
existing contracts, Algoma entered into new contracts with
shipyards in Croatia and in
China for the construction of five
new full sized Equinox Class vessels, deliveries of which are
expected to occur in 2018. The instalments refunded in this action
will be used to fund a portion of the costs for the new
contracts.
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