At least one potential buyer is interested in Canada's bankrupt Davie Yards. Oslo-listed Cecon ASA, which is the yard's main customer, says it has entered into a preliminary agreement "providing for exclusive negotiations/discussions with a large, well-reputed international company for the purpose of facilitating the purchase of Davie Yards Inc. assets with the view to secure delivery of the three vessels under construction."

Cecon is currently having discussions with this company to obtain a completion guarantee to facilitate further financing for the completion of the vessels.

The group has requested Davie Yards Inc. for exclusivity to perform due diligence at the yard with the aim of taking over the yard.

Cecon says the group has the intent to:

• Qualify for, and bid for the upcoming National Shipbuilding Procurement Strategy of both combat and non-combat vessels
• Complete the three Cecon vessels under construction
• Pursue other additional opportunities for the yard

March 4, 2011

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