MARCH 15, 2014 — In a filing Saturday, the Board of Directors of shipbuilder Vard Holdings Limited said that on March 12 "the company was notified that two affiliates of E.R. Offshore, our customer, have filed for insolvency at a local court in Germany."
Vard is currently constructing one PSV for each of these companies at its shipyard in Vung Tau, Vietnam (see earlier story). It has received a 10% installment for one of the vessels.
Vard said it had terminated the two shipbuilding contracts Friday.
"The Group does not expect to repay the prepayment received, and expects to be able to sell the vessels at a price that will cover the expected construction cost less the prepayment received," said the filing.