Mosvold Supply cancels another AHTS at Otto MarineYard News // February 29, 2012
The Board of Directors of Otto Marine Limited say Otto Offshore Limited has received a letter dated 27 February 2012 from Mosvold Supply IV Ltd terminating the shipbuilding contract for the construction of Hull No 7050, a 21,000 bhp AHTS vessel, demanding the refund of all advance payments with interest.
The company has made provision for the cancellation of the contract, and reversed the profits in the financial statements for the year ended 31 December 2011. This was announced in the Company's announcement dated 23 February 2011.
Hence the company do not expect the cancellation to have a material impact on net earnings per share or net tangible assets for the financial year ending 31 December 2012.
Otto Offshore Limited said it will be seeking legal advice in relation to its legal position on the above matters.