Vard hit again as another customer goes bust

Norwegian shipbuilder Vard Holdings is assessing its options in regards to a diving support and construction vessel under construction at Vard Søviknes, ordered by Harkand who are now under administration.

Harkand ordered the vessel in December 2013, and it is now in the advanced stages of construction with delivery originally scheduled for the second quarter of this year.

In a statement Vard said that if the shipbuilding contract is unlawfully terminated it will be entitled to retain payments already received, equivalent to 20% of the original price, and will be able to resell the vessel.

While the company said the payments already received could facilitate a resale of the vessel, its likely it would take a hit based on current newbuild prices, provided it can find a buyer.

In March last year, two single ship owning entities related to Germany’s ER Offshore filed for bankruptcy leaving Vard with a near-completed PSV, which it has since been unable to sell even at a heavy discount. The vessel is now owned by a Singapore-based subsidiary of Vard and on charter to DOF working off Australia.


Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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