Algoma Central Corporation ("Algoma" or "the Company") (TSX: ALC), a leading provider of marine transportation services, today announced that it has taken steps to cancel its remaining four new build construction contracts with a Croatian shipyard ("the Yard"). The cancellation notices have been sent to the shipyard as a result of the Yard's failure to secure refinancing and Algoma has no assurance that the shipyard will be able to complete the four vessels. The Company will now initiate the process to be reimbursed for contract instalments paid to date, including issuing demands under related refund guarantees.
Every effort is being made to replace the cancelled vessels and the Company remains confident of their ability to provide capacity in the interim.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest fleet of dry and liquid bulk carriers on the Great Lakes St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has expanded into international short sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short Sea Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol "ALC". For more information, please visit www.algonet.com.
Ken Bloch Soerensen
President and CEO
Peter D. Winkley, CPA, CA
Chief Financial Officer