Vard Holdings has agreed to terminate a shipbuilding contract with Rem Offshore in return for compensation.

The contract with REM for one offshore construction and anchor handling vessel was entered into in June 2014.

Delivery of the vessel was originally scheduled for Q1 2016, but delivery had previously been postponed until Q1 2018.

The vessel, of Vard 2 06 design, with overall length of 100 meters and a beam of 25 meters, is in an early stage of construction..

“The agreement to terminate the shipbuilding contract is part of a restructuring plan agreed in principle between REM and its bank lenders, major bondholders, and main stakeholders. As part of the compensation for the termination, the company shall receive shares equal to approximately 4% of the total issued shares in REM post the restructuring. Effectiveness of the termination is contingent on the restructuring plan being approved,” Vard wrote.