Wellard Ltd (ASX:WLD) (Wellard) advises that it’s Singaporean subsidiary, Wellard Ships Pte Ltd has received notification of termination of the build contract for the MV “Kelpie” from Uljanik D.D. (Uljanik), the Croatian shipyard.
The MV Kelpie was specified as a bespoke livestock carrier of approx. 12,500 m2 net pen area, originally commissioned by contract with Uljanik in March 2015.
Wellard previously announced in its 20 August 2018 Annual Report that it was commencing negotiations to either exit or delay the build contract, and that it was possible the Company may breach commitments under the contract.
Wellard will immediately asses its response to Uljanik in order to protect its rights under the contract.
In its FY18 Annual Report, Wellard chose to fully impair the A$13.8 million value it had on its balance sheet at 30 June 2018, reflecting advance payments made under the Uljanik contract.
Wellard will provide further details as the matter progresses.