Algoma Central Corporation cancels Croatian vessel contracts
Algoma Central Corporation, a leading provider of marine transportation services, has taken steps to cancel its remaining four newbuild construction contracts with a Croatian shipyard. The cancellation notices have been sent to the shipyard as a result of the yard’s failure to secure refinancing and Algoma not having assurance that the shipyard will be able to complete the four vessels. Algoma will now initiate the process to be reimbursed for contract installments paid to date, including issuing demands under related refund guarantees.
Every effort is being made to replace the cancelled vessels and Algoma remains confident of its ability to provide capacity in the interim.