Tuesday, November 18, 2014

Statement: Forest City buys out Skanska's share of troubled modular factory

As I wrote, Forest City was on the verge of buying out Skanska's share of the troubled modular factory at the Brooklyn Navy Yard and thus presumably/potentially restarting production of modules for the stalled B2 tower at Dean Street and Flatbush Avenues. And today it happened.

A joint statement today from Forest City Ratner and Skanska:
Today FCRC Modular, LLC and Skanska Modular LLC announced that FCRC Modular, LLC will purchase the ownership interest of Skanska Modular LLC in their jointly owned modular factory business in the Brooklyn Navy Yard, FC+Skanska Modular, LLC, for an undisclosed amount.

The agreement, achieved through mediation with Roger J. Peters, Esq., marks the end of the companies’ partnership at the modular factory and makes FCRC Modular the sole owner and manager of the modular business.

Litigation between the companies over the B2 Project will continue and is not impacted by this agreement.
That litigation involves some $50 million in claimed damages for cost overruns.

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