Vard Terminates Contracts to Build 2 PSVs for E.R. Offshore's Units
Singapore-listed Vard Holdings Limited (the Company) disclosed Friday that on March 12, the Company was notified that two affiliates of E.R. Offshore, our customer, have filed for insolvency at a local court in Germany.
The Company’s subsidiary is currently constructing one platofrm supply vessel (PSV) for each of these companies at its shipyard in Vung Tau, Vietnam. It has received a 10 percent installment for one of the vessels.
On March 13 the Group terminated the two shipbuilding contracts. The Group does not expect to repay the prepayment received, and expects to be able to sell the vessels at a price that will cover the expected construction cost less the prepayment received.
The impact of the termination and the proposed resale is expected not to have a material effect on the earnings per share of the Group for the financial year ending Dec. 31.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- VARD Agrees to Terminate Order to Build OCAH Vessel for REM Offshore (Jun 29)
- Blue Water Shipping-Led JV Bags $350M Deal from Kazakhstan's Tengizchevroil (May 12)
- Marine Industry Looks To Cruise Ships, Wind Farms To Weather Oil Slump (Apr 12)
Company: E.R. Offshore more info
- Vard Terminates Contracts to Build 2 PSVs for E.R. Offshore's Units (Mar 16)
- Vard Bags Contract to Design, Build PSV for E.R. Offshore (Jul 16)