Logitel Offshore delays delivery of accommodation unitsVessel & ROV News // July 10, 2015
Referring to its first quarter 2015 report, where the risk of potential delays in the delivery of accommodation units it had on order was highlighted, Sevan Marine says it has been informed that Logitel Offshore has entered into an agreement with COSCO to delay the delivery of unit number two for up to 12 months until October 2016, with the ability to take delivery earlier if required. In addition, a postponement of work for 120 days has been agreed with respect to unit three.
This will lead to delays in payment to Sevan Marine in relation to the two vessels and increases the risk that options for further newbuilds will not be called off and/or such call-offs will be delayed.
Subject to final review, these factors, combined with the market outlook, are expected to lead to a non-cash impairment in the range of US$35-40 million in the carrying value of the convertible loan and accrued interest.