SINGAPORE (May 9): Vard Holdings may resell a vessel ordered by troubled Harkand Group, if the latter unlawfully terminates a shipbuilding contract entered between the two parties.

The shipbuilding company is currently evaluating its position towards Harkand, which has entered into administration.

"If the shipbuilding contract is unlawfully terminated by the customer, Vard will contractually be entitled to retain the advance payments already received, equivalent to 20% of the original contract price, and to resell the vessel," Vard says.

Vard says it is building one diving support and construction vessel for Harkand, originally contracted in December 2013 for delivery from Vard Søviknes in 2Q 2016.

The vessel is in an advanced stage of construction.

Vard says the payments already could facilitate a resale of the vessel.

Shares of Vard ended lower at 17.1 cents on Friday.