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Algoma wins fourth arbitration claim against bankrupt Mingde

Canada’s Algoma Central Corporation announced the UK Arbitration Tribunal has ruled in the company’s favour over a final shipbuilding contract dispute with China’s Nantong Mingde Heavy Industries.

Algoma entered into contracts in 2010 to build six Equinox Class bulk freighters at Mingde. The Chinese shipyard, however, declared bankrupt in July 2015 after only delivering two out of the six units.

“With the resolution of the final refund claim against Mingde decided in our favour, 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 Algoma. “We have begun collection procedings for this final Mingde refund guarantee and expect to have this matter fully behind us in the near future.”

Algoma had already won three decisions regarding refund guarantees in the earlier failed orders at Mingde.

Algoma had received payments totalling $53.4m in refund guarantees relating to the cancellation of the earlier three shipbuilding contracts. The amount to be claimed from the fourth contract is yet to be disclosed.

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