Offshore staff

SKUDENESHAVN, Norway -- Solstad Offshore ASA (SOFF) has cancelled two newbuild contracts with KMS.

KMS is currently submitting a petition for bankruptcy. The company has incurred significant cost overruns and considerable delays under the two projects, and informed involved banks and SOFF that they are not in a position to stand by their contractual obligations.

The present breach of contract and the announcement for petition for bankruptcy means that the shipbuilding contracts are no longer considered as binding agreements, according to SOFF.

03/16/2009