Challenger Acquisitions Ltd (LON:CHAL) remains confident that the stalled New York Wheel (NYW) project will get rolling again soon.
The group believes too many people have a vested interest in getting the iconic giant observation wheel – New York’s answer to the London Eye – up and running for the future of the project to remain up in the air for too long.
Challenger noted that most of the main components are already complete, and the components for the four 300’ legs are stored in Brooklyn and ready to be assembled on site.
It also observed that some US$400mln has been spent to date on the project and although there will be more legal developments, these will ultimately determine the financial exposure for the original design-build company (Mammoet-Starneth), and not the future of the NYW project.
Talking of Mammoet-Starneth, it recently filed for protection from its creditors; Challenger sought to quash any concerns shareholders might have about this development by clarifying that the NYW project is owned by New York Wheel Investors LLC, which is a separate company to Challenger, and that Starneth LLC, which is part of the legal contractual dispute with the original wheel erectors, has never been owned by Challenger.
Any potential future payments to be received by Challenger will be from Starneth Europe or Starneth Holdings, which the company previously owned.
READ: Challenger Acquisitions has "tremendous confidence" construction of NY Wheel project will recommence in the near-term
"With a US$3mln equity stake in the New York Wheel Project we look forward to, and have every confidence in full construction work recommencing again in the near future," said Mark Gustafson, the chief executive officer of Challenger.
“We believe that there are significant vested interests to see the NYW Project become very active again in the short term,” he added.