Vard agrees to termination of contract for Rem newbuiildYard News // June 28, 2016
The Board of Directors of Vard Holdings Limited have agreed in principle to terminate a shipbuilding contract with Rem Offshore in return for a compensation.
The contract with Rem for an offshore construction and anchor handling vessel was entered into in June 2014. Delivery of the vessel was originally scheduled for the first quarter of 2016, but delivery had previously been postponed until the first quarter of 2018. The vessel is 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.
As part of the compensation for the termination, Vard will receive shares equal to approximately 4 per cent of the total issued shares in Rem after the restructuring. The effectiveness of the termination is contingent on the restructuring plan being approved.
The yard said it is currently evaluating the financial impact of the agreement, which will be disclosed when the company announces the unaudited results for the second quarter ending 30 June 2016.