Challenger Acquisitions Limited New York Wheel Update (7035Z)
December 19 2017 - 2:00AM
UK Regulatory
TIDMCHAL
RNS Number : 7035Z
Challenger Acquisitions Limited
19 December 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA
OR JAPAN.
For Immediate Release
19 December 2017
Challenger Acquisitions Limited
("Challenger" or the "Company")
New York Wheel Update
Challenger Acquisitions Limited (LSE: CHAL) announces an update
on the New York Wheel Project, ("NYW Project") in which the Company
has an equity stake (US$3 million).
As previously announced, due to a contractual dispute with the
wheel erectors, New York Wheel Investor LLC has terminated its
contract and is in advanced negotiations with American Bridge
Company, a very experienced engineering and construction firm. The
Directors of Challenger remain confident that full construction of
the NYW Project will recommence in the short-term for the following
reasons:
-- The main financial supporters/shareholders of the NYW Project
want to see this iconic project completed as they have with a
substantial number of other large scale real estate projects in the
United States
-- The significant majority of the main components are substantially complete
-- The components for the four 300-foot legs are stored in
Brooklyn and ready to be assembled on site
-- Approximately US$400 million has been spent to date
-- Despite the ongoing legal process regarding a contractual
dispute that the developer has with the former wheel erectors, the
transfer of information and documents should continue and result in
the appointment of a new contractor in the short-term
-- There will be more legal developments, however these will
ultimately determine the financial exposure for the original
design-build company, and not the future of the NYW Project
Following a recent filing for Chapter 11 protection by
Mammoet-Starneth LLC, the original design-build company for the NYW
Project, the Company wishes to clarify that the NYW Project is
owned by New York Wheel Investor LLC, which is a separate company
from Challenger. Additionally, the Company wishes to note that
Starneth LLC (a US company), which is part of the legal proceedings
noted above, has never been owned by Challenger. Any potential
future payments to be received by Challenger will be from Starneth
Europe or Starneth Holdings, which the Company previously owned
(see RNS dated 30 January 2017).
Mark Gustafson, Challenger's Chief Executive Officer said, "With
a US$3 million equity stake in the New York Wheel Project we look
forward to, and have every confidence in full construction work
recommencing again in the near future. We believe that there are
significant vested interests to see the NYW Project become very
active again in the short term. We look forward to providing
additional updates in due course."
This announcement contains inside information.
**ENDS**
For more information visit www.challengeracquisitions.com or
enquire to:
Challenger Acquisitions Limited
Mark Gustafson +1 604 454 8677
St Brides Partners Ltd (PR)
+44 (0) 20 7236
Lottie Wadham, Charlotte Page 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAKAPFSDXFFF
(END) Dow Jones Newswires
December 19, 2017 02:00 ET (07:00 GMT)
Cindrigo (LSE:CHAL)
Historical Stock Chart
From Apr 2024 to May 2024
Cindrigo (LSE:CHAL)
Historical Stock Chart
From May 2023 to May 2024