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Money in dispute over cancelled contract placed in trust

Red Deer-based Blue Horizon Industries Inc. says monies it claims are owed to one of its subsidiaries have been placed into a trust account.

Red Deer-based Blue Horizon Industries Inc. says monies it claims are owed to one of its subsidiaries have been placed into a trust account.

Blue Horizon Energy Inc. last week obtained an injunction from a British Columbia court that prevented two Chinese companies from removing equipment from Kitimat ammonia or methanol plants that they had contracted Blue Horizon Energy — through its Blue Horizon Contracting Division — to dismantle for them.

One of the Chinese companies had sought to terminate the deal, which was valued at US$20.4 million but under which $15.9 million had already been paid to Blue Horizon Energy.

Blue Horizon Industries said Tuesday that Ko Yo Development Co. Ltd. and Guangan Lotusan Natural Gas Chemicals Co. Ltd. had now posted $4.2 million in security to have the injunction removed.

It added that Blue Horizon Energy is proceeding with an application to have the matter arbitrated.

Meanwhile, Blue Horizon Industries has also announced that Michael Koenig has resigned as its chief financial officer and director. Another director, Robin Ray, has assumed the CFO’s position, and Nathan Hansen has been added to the board.

In addition to Blue Horizon Energy, which also explores for oil and gas, Blue Horizon Industries owns Blue-Horizon Bio-Diesel Inc. and has a 74 per cent interest in Blue Horizon Mining Inc.

Shares in Blue Horizon Industries are listed to trade on the Canadian National Stock Exchange (CNSX: BH).