Challenger Acquisitions said it remained confident that work on the New York Wheel project, in which the company had an equity stake (US$3m), would recommence in the near-term.
The group also said the board was evaluating new projects which offered strategic growth opportunities.
The group said that as previously announced, due to a contractual dispute with the wheel erectors, New York Wheel had terminated its contract and was in advanced negotiations with American Bridge Company, a very experienced engineering and construction firm that had completed a significant proportion of the world's large bridges, marine installations, and other complex structures, including the Giant Observation Wheel in Las Vegas in 2014.
Challenger said a court hearing was scheduled for today (26 Oct) in New York where the New York Wheel and the former wheel contractor would discuss the transition matters related to the extensive work done by the various subcontractors for the NYW project.
Challenger said further updates would be made as and when information became available, however the company remained confident that full construction of the NYW project will recommence in the near-term. It said that while this contractual dispute had caused delays in the construction of the 630ft Giant Observation Wheel, significant progress had been made on the 75,000 sq ft terminal and retail building terminal which would sit alongside the Giant Observation Wheel and a 950 space parking garage and a 5,000-person capacity green roof for events.
Work on the major components of the Giant Observation Wheel such as the rim, cables, spindle, drive towers, capsules and control cabinets were also still in progress.
Challenger slso said that in line with its strategy to acquire or develop opportunities in the leisure and entertainment sectors which complemented its investment in the NYW project, the board had been busy evaluating a number of projects the company believed had the potential to offer near and long term revenue generation prospects.
It said three opportunities had been declined over the past two quarters as following due diligence processes the board deemed the projects not to be a proper fit for Challenger. However, due diligence continued on five new potential projects that had been identified and targeted in 2017, and updates would be made to the market with regards to these opportunities as and when appropriate, although there was no certainty that any will proceed.
Challenger said its role may range from actively investing to partnering/operating in these businesses.
At 8:12am: (LON:CHAL) Challenger Acquisitions Ltd share price was -0.03p at 1.08p