Cecon, Bergen Enter Agreement to Secure Delivery of Vessels at Davie Yards

Cecon and Bergen Group have entered into a Heads of Agreement, by which the parties agree to establish a new company "Newco." Bergen Group will control 50.5% and Cecon initially 49.5% of voting shares in the Newco.

Newco is interested in investing in Davie Yards in order to become an industrial partner with Davie and to secure cooperation between the shipyards of the Bergen Group and that of Davie Yards Inc. in Quebec. Newco intends to invest up to US $10 million in Davie.

Bergen will enter into a management agreement with Davie. The purpose of the management agreement is to secure that Bergen Group can provide Davie with knowledge and advice related to operation supervision, project management and change processes. The ambition is to assist Davie in securing delivery of the existing order backlog and also contribute to develop the yard for the future. Bergen's participation will strengthen Davie's capabilities to deliver Cecon's ordered vessels according to the previously announced revised construction contract and delivery schedule.

The agreement is subject to, among others, the provision of refund guarantees to Cecon ensuring the company can draw on its existing US $200 million senior bank facility.