Algoma Central Corporation (Algoma) announced that the London, UK Arbitration Tribunal hearing a shipbuilding contract dispute involving Algoma Tankers International Inc., a wholly owned subsidiary of Algoma Central Corporation, has found in favour of Algoma.
“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 Algoma’s Board of Directors. “I would like to extend my thanks to everyone involved in this for their diligence and hard work.”
In 2007 the Corporation, through its wholly owned subsidiary, entered into contracts to build three 16,500-deadweight-tonne product tankers in China. Each contract contained provisions that permitted cancellation 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 instalments 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.