Algoma gets refund on cancelled newbuilding contracts in Croatia

Canada’s Algoma Central Corporation has received full refund of all instalment payments made in connection with the now-cancelled shipbuilding contracts with Uljanik and 3Maj Shipyard in Croatia.

Algoma entered into five shipbuilding contracts with 3Maj, an operating unit of Uljanik. After considerable delay, the first of the five bulk carriers was delivered in 2018.

However, Algoma cancelled the remaining four contracts as the shipyard’s financial difficulties led to a much-publicised attempt to refinance the company and shipyard management was unable to put forward a credible plan that would lead to completion of the remaining hulls.

Demands for the payment of the related instalments were made in December 2018 and the banks guaranteeing the repayment of the amounts have now remitted a total of C$115 million (US$86.65 million) in full settlement of the claims.