New York Wheel Update

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	[phone]
St Brides Partners Ltd (PR)
Lottie Wadham, Charlotte Page	[phone]

 

END

 

 

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