Georgia Annuls Deal with Armstrong Holdings over Sale of Shipping Co.

Georgian Prime Minister Zurab Nogaideli announced on March 30 that Georgia has annulled a deal with Armstrong Holdings Corporation over the purchase of Georgia?s Ocean Shipping Company. Nogaideli did not specify the reasons behind this decision; however, officials reported earlier that Armstrong Holdings fell short of the payment schedule envisaged by the agreement.

?The agreement with Armstrong Holdings is annulled. The winner of the privatization [of Ocean Shipping Co.] is Aquamarine Shipping Consultants, which will pay USD 93 million,? Nogaideli said.

Aquamarine Shipping Consultants was one of several companies that submitted a bid for the Ocean Shipping Company in January.  However, its bid was lower than Armstrong Holdings and the Georgian Government declared the latter company the winner on January 26.

According to an agreement with the Armstrong Holdings Corporation, the company was expected to pay USD 161 million for the Ocean Shipping Company, out of which USD 89 million was expected to go to the state budget and USD 72 million towards covering the debts of the Georgian Ocean Shipping Company.

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