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Vard names counterparty as customer that has gone into administration

SHIPBUILDER Vard Holdings on Monday said that it has been notified that Harkand Group has entered into administration - which is a procedure under insolvency laws in some jurisdictions.

Harkand has one diving support and construction vessel under construction at Vard, originally contracted in December 2013 for delivery in Q2 2016. The vessel is in an advanced stage of construction.

Vard said: "The company is currently evaluating its position towards Harkand. If the shipbuilding contract is unlawfully terminated by the customer, Vard will contractually be entitled to retain the advance payments already received, equivalent to 20 per cent of the original contract price, and to resell the vessel."

It added that the payments already received could facilitate a resale of the vessel.