Cecon in loan deal for Canada vessels

Awaiting completion: Cecon vessels at Davie Yards

CECON

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Steve Marshall

 24 April 2012 10:52 GMT

Norwegian subsea installation contractor Cecon has secured the rights to an export loan in order to ensure the completion of three vessels under construction at a Canadian yard that was earlier reported to be facing bankruptcy.

Cecon has received acceptance from Export Development Canada (EDC) to acquire the rights to the $200 million financing facility received by the contractor in 2009, the company said in a statement on Tuesday.

It is now in the process of negotiating a final purchase agreement with EDC whereby it will pay an undisclosed cash sum for the loan rights, with the transaction expected to close within a few weeks.

Cecon said closing of the transaction is conditional on the company reaching a final commercial contract with the Davie Yards joint venture formed by Upper Lakes Group and SNC Lavalin to…

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