VARD Agrees to Terminate Order to Build OCAH Vessel for REM Offshore

Singapore-listed Vard Holdings Ltd. (VARD) disclosed Tuesday that it has agreed in principle with REM Offshore ASA to accept compensation for the termination of a contract to build an offshore construction and anchor handling vessel.

REM placed the $94.21 million (NOK 800 million) construction order for the vessel in June 2014. It was originally scheduled for delivery in the first quarter of 2016, but this was delayed to the first quarter of 2018. The vessel is currently in an early stage of construction.

"The agreement to terminate the shipbuilding contract is part of a restructuring plan agreed in principle between REM and its bank lenders, major bondholders, and main stakeholders," the VARD said in a press release.

As part of the compensation for the termination, which is contingent on the restructuring plan being approved, VARD shall receive around 4 percent of the total issued shares in the restructured REM.


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