Giant observation wheel specialist Challenger Acquisitions Ltd (LON:CHAL) remains confident that full construction of the New York Wheel (NYW) project will recommence in the near-term.
Work has stopped on construction of the wheel due to a contractual dispute with the previously appointed wheel erectors,
A court hearing is scheduled for today (26 October) in New York where the company behind the NYW (in which Challenger has a US$3mln equity stake) and the former wheel contractor will discuss the transition matters related to the extensive work done by the various subcontractors for the project.
While the company has been waiting for the NYW issue to be resolved, significant progress has been made on the 75,000 square foot terminal and retail building which will sit alongside the New York Wheel, 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, are also still in progress.
The company remains on the look-out for further giant observation wheel construction opportunities, and although it has rejected three potential projects over the last six months after performing due diligence, five new potential projects are currently under consideration.
"Following the restructuring process for Challenger since our disposition of Starneth we have been avidly evaluating projects which we believe will create near-term revenue and complement our interest in the NYW Project,” said Mark Gustafson, chief executive officer of Challenger.
“This is not a simple or quick process; however, we are very encouraged by recent developments with several of the new opportunities. Meanwhile, we look forward to the recommencement of full construction of the NYW Project, and anticipate being able to announce further updates in the near term. I would like to thank our shareholders for their patience during this time and re-emphasise that we are working hard to find the right opportunity to deliver the utmost shareholder value," he added.