Cecon to Receive Refund Guarantees for Newbuildings at Davie Yards

On December 17, Cecon was informed that Export Development Canada ("EDC") will grant refund guarantees towards all remaining pre-delivery installments for Cecon’s three new buildings at Davie Yards in Quebec, Canada. The refund guarantees related to Cecon amounts to approx. US $160 million.

The issuing of refund guarantees is a central condition in Cecon’s agreements with Davie Yards and Bergen Group, and a condition precedent for the US $200 million first priority bank loan. Consequently, yesterday’s announcement is an important milestone towards completing the refinancing and restructuring of Davie Yards and resuming normal operations in Cecon’s newbuilding program.