Friday November 6, 4:57 pm Eastern Time
Company Press Release
American Eco Terminates Amethyst Project
HOUSTON--(BUSINESS WIRE)--Nov. 6, 1998--American Eco Corporation (NASDAQ:ECGOF, TSE:ECX), through its subsidiary MM Industra, announced it has invoked a clause in its contract with Petrodrill Offshore International which rescinds its project associated with the construction of Amethyst II and III, based on default for nonpayment. Petrodrill is a joint venture between Pride International of Houston and Maritima of Brazil.
The fabrication order for two semi-submersible oil rigs called for payment to American Eco of a total $162 million when completed. Further negotiations to acquire Davie Industries from Dominion Bridge Corp. have been suspended pending a resolution of the Petrodrill contract and its funding.
American Eco's President, Frank Fradella, stated, ''We understand Petrodrill's problem, and we are hopeful that we will be able to negotiate a mutually acceptable financial resolution with Petrodrill that would protect American Eco's interests. It is our goal to resolve these negotiations equitably and quickly.''
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements made herein include the ability of the company to continue to expand through acquisitions, the availability of capital to fund the company's expansion program, the ability of the company to manage its expansion effectively, economic conditions that could affect demand for the company's services, the ability of the company to complete projects profitably and severe weather conditions that could delay projects. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date on which such statements are made. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
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