Triyards has US$25.5m shipbuilding contract terminated; seeks extension fore Q1 results

CASH-STRAPPED Triyards, on announcing the termination of a shipbuilding order, said that it is seeking two more months to file its first-quarter financial results.

The yard group said after Thursday trading hours that its subsidiary Saigon offshore Fabrication and Engineering has received notice of termination for the design and construction of a chemical tanker at a contract value of US$25.5 million.

The buyer behind the contract will also seek reimbursement of some US$5.1 million paid in advance for the tanker.

No reasons were cited for the contract termination. But last December, Triyards had disclosed two other contract terminations due to a lack of funding to complete the vessels by the contracted delivery dates.

On Feb 13, the yard group announced an exclusivity agreement with a Cayman Island-based and registered fund vehicle managed by Singapore-based Ferrell Asset Management Pte Ltd tied to a US$5 million short-term loan.

The group is seeking clarity on a balance of US$3.8 million from the US$5 million loan that was expected to be disbursed by Feb 22, which it said will have a material impact on its Q1 FY2018 financial results.

Consequently, it has applied to the Singapore Exchange for two months' extensions to announce its Q1 FY2018 financial results by May 31 and to hold its annual general meeting by April 30.

It has also sought a two-month extension to announce its unaudited financial statements for the second quarter ended Feb 28, 2018.