Into financial difficulties, Triyards chemical tank and then subject to withdrawal
Triyards Holdings Limited, a Singapore-based shipbuilder in financial trouble, recently announced that a chemical tanker design and construction contract was terminated by its owner. The contract was signed on June 26, 2015, with a total value of approximately $ 25.5 million.
Saigon Offshore Fabrication and Engineering Limited (SOFEL), a subsidiary of Triyards, has received notice of the shipowner's withdrawal and the owner has also requested a repay of $ 5.1 million. Currently, Triyards is assessing the financial impact of terminating the contract.
At the end of 2017, Triyards received notice of termination of the construction of two chemical tankers, canceled the construction contract signed on June 26, 2015 and the supplemental contract dated May 10, 2017 with a total order value of approximately $ 51 million and requested SOFEL Refund of all contracts paid, totaling $ 10.2 million.
In mid-February 2018, Triyards and Ferrell Vanguard Fund SPC entered into an exclusive short-term loan agreement up to a maximum of $ 5 million to cover working capital requirements, including unpaid wages in Singapore and Vietnam. The first tranche of $ 1.2 million was paid immediately to settle the unpaid wages in Vietnam, while the remaining $ 3.8 million has not yet been received for technical details and contractual issues.