Mermaid Terminates Newbuild Contract

  • Business & Finance

Mermaid Maritime and China Merchants Industry Holdings have mutually agreed to cancel the construction contract for the DP2 dive support and construction vessel ‘Mermaid Ausana’, effective December 6, 2016.

The two companies previously settled to postpone the delivery of the vessel to June 30, 2017.

The construction deal had already seen Mermaid pay a pre-paid installment of USD 20.4 million. Additional USD 124.8 million would have been due to China Merchants Industry Holdings upon delivery of the vessel.

China Merchants Industry Holdings will keep the pre-paid sum along with the vessel and all the materials and equipment forming part of the vessel or intended to be incorporated into it.

Mermaid has gained USD 1 million for expenses incurred in relation to the construction contract and the settlement. Mermaid also added that the above mentioned pre-paid installments and associated costs were part of asset-impairment in 2015 financial statements.

Subsea World News Staff

 

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