SGX-listed Vard Holdings has agreed to terminate a shipbuilding contract with REM Offshore ASA in return for a compensation.
The contract with REM for one offshore construction and anchor handling vessel was entered in June 2014, and the vessel is in early stage of construction.
Delivery of the vessel was originally scheduled for Q1 2016, but delivery had previously been postponed until Q1 2018.
Vard said 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.
As part of the compensation for the termination, Vard will receive shares equal to approximately 4% of the total issued shares in REM post the restructuring.
The shipbuilder is currently evaluating the financial impact which will be disclosed when the company announces the unaudited results for Q2 ending 30 June 2016.
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