Singapore shipbuilder Keppel Corporation has suspended work on rig ordered by Sete Brasil, after the Brazilian company’s shareholders approved a resolution to file for a judicial recovery.
Sete Brasil ordered six rigs in total at Keppel and hasn’t been unable to pay the shipyard due to its financial difficulties. The company filed for a bankruptcy last week.
Keppel said it has stopped work on the rigs last year and will not resume construction until payments re-commence.
Keppel has also made a provision of S$230m ($170.4m) for the contracts in the last financial year and the company continues to believe that the provisions are sufficient.
Keppel said it will continue to monitor and evaluate the situation to best protect the company’s interests.
