Arbitration panel finds for Algoma in shipbuilding case

algoma logoAPRIL 30, 2013 — Algoma Central Corporation (TSE:ALC) reported today that the London, U.K., Arbitration Tribunal hearing a shipbuilding contract dispute involving Algoma Tankers International Inc., a wholly owned subsidiary of Algoma Central Corporation, has found in favor of Algoma.

In 2007 the corporation, through its wholly owned subsidiary, entered into contracts to build three 16,500 deadweight ton product tankers at Jiangxi Jiangzhou Union Shipbuilding in China. Algoma says that each contract contained provisions that permitted cancelation 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 installments 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.

"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."

Want more? Subscribe now!

Subscribe to Marine Daily for breaking marine news