Financially-troubled shipbuilder Triyards Holdings Limited has received a termination notice for a chemical tanker design and construction deal.
The termination covers the USD 25.5 million shipbuilding deal dated June 26, 2015 and the addendum dated May 10, 2017 agreed between the shipbuilder the the buyer.
The buyer of the chemical tanker, which delivered the notice of termination to Triyards’ subsidiary, Saigon Offshore Fabrication and Engineering Limited (SOFEL), will claim for the reimbursement of all sums paid in advance on account of the contract in an amount of USD 5.1 million.
Triyards informed that it is assessing the financial impact of the termination notice and the termination of the contract.
In late 2017, the Singapore-listed shipbuilder received termination notices related to two chemical tankers. The shipbuilding contracts, dated June 26, 2015 and the addendum dated May 10, 2017, had an aggregate contract value of USD 51 million.
In mid-February 2018, Triyards entered into an exclusivity and short-term loan agreement for an amount of up to USD 5 million with Ferrell Vanguard Fund SPC to meet working capital needs including outstanding salary payments in Singapore and Vietnam
The first tranche of USD 1.2 million was disbursed immediately to settle outstanding salary payments in Vietnam, while the remaining USD 3.8 million is yet to be received due to technicalities and documentation.
Under the terms of the EA, Ferrell Vanguard Fund SPC will have an exclusivity of 180 days commencing from the receipt of the entire USD 5 million under the loan agreement to conduct satisfactory due diligence, propose and conclude a comprehensive corporate restructuring plan for the company.