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Ince Gordon Dadds advises Algoma on the CAD$115 million cancellation of four shipbuilding contracts

22.01.2019

International law firm Ince Gordon Dadds has advised Algoma Central Corporation (“Algoma”), a leading provider of marine transportation services, on the cancellation of four shipbuilding contracts with Uljanik and 3Maj Shipyard of Croatia. The contracts related to the construction of self-unloading bulk carriers that were to operate on the Great Lakes.

Toronto-listed Algoma owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes – St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers.

Algoma entered into five shipbuilding contracts with Uljanik d.d and 3Maj Shipyard, whose financial difficulties led to a much-publicised attempt to refinance the company. The first of the five vessels was delivered in 2018. However, Algoma cancelled the remaining four contracts and demands for repayment of the related instalments and interest were made in December 2018.The banks guaranteeing the repayment of the amounts have now remitted a total of CAD$115 million to Algoma.

The London-based Ince Gordon Dadds team that advised Algoma was led by Chris Kidd, Head of Shipbuilding and Offshore Construction. He was assisted by Ben Moon and David Choy.

Chris Kidd commented: “Algoma is an established and valued client of our firm. We are therefore delighted to have been able to successfully assist them with recovering the instalments paid for the cancelled contracts.”