Algoma announces favorable outcome in arbitration claim
Algoma Central Corporation announced July 20 that the London, UK Arbitration Tribunal hearing a contract dispute involving a fourth and final shipbuilding contract between Algoma and Nantong Mingde Heavy Industries Stock Co. Ltd., has found in favor of Algoma.
“With the resolution of the final refund claim against Mingde decided in our favor, we can now devote our full attention to building the vessels that we have ordered to replace the ones that Mingde did not complete,” said Ken Bloch Soerensen, President and CEO of the corporation. “We have begun collection proceedings for this final Mingde refund guarantee and expect to have this matter fully behind us in the near future.”
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 cancelled the four remaining contracts. Tribunal decisions in Algoma’s favor were received on all four cancellations.