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Challenger looking at alternatives after NY Wheel developer appears to give up on the project

A contractual dispute between the developer and the former wheel erectors has derailed the project
Giant observation wheel
New York was looking to emulate the success of the London Eye

It looks like the final spin of the wheel for the New York Wheel Project, in which Challenger Acquisitions Limited (LON:CHAL) has a minority stake.

The developers of the giant observation wheel have issued a status update in which they admitted: "there appear to be no viable options for financing the balance of the work required to complete the project".

READ: Challenger Acquisitions updates on development of the New York Wheel and The Odyssey in Dallas

"For all the stakeholders in the NYW Project, this is definitely not a good development assuming the project does in fact not proceed,” said Mark Gustafson, the chief executive officer of Challenger.

The developers are now planning to maximise “potential cash recovery” from the design-build team and its parents. Gustafson stressed that, aside from being a minority shareholder, it is not involved in any litigation connected to this project.

“Since our company was not expecting a return from this investment for several years, we are continuing to seek out, evaluate and review a potential project that can utilise the public company platform in a manner that makes sense from a financial and regulatory perspective,” Gustafson said.

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