REM order cancelled due to restructuring program

Vard Holdings has agreed in principle to terminate a shipbuilding contract with Rem Offshore in return for a four per cent share in the company.

The agreement is part of a restructuring plan between REM and its bank lenders, major bondholders, and main stakeholders.

The contract with REM was for one offshore construction and anchor-handling vessel and began in June 2014.

As part of the compensation for the termination, Vard will receive shares equal to approximately four per cent of the total issued shares in REM post the restructuring.

However, the agreement is dependent on the restructuring plan being approved.

Delivery of the vessel was originally scheduled for the beginning of 2016, but had previously been postponed until the start of 2018. Vard said the vessel is in an early stage of construction.

Vard will evaluate the financial impact and disclose it when the company announces the unaudited results for the second quarter ending June 30, 2016.