In FY2018 the Group impaired $13.8 million paid under the build contract for the MV Ocean Kelpie. On 14 October 2018, we announced that theCroatian shipyard Uljanik D.D (“Uljanik”) had terminated the build contract. Wellard has subsequently commenced arbitration in London against Uljanik for wrongful termination and a repudiation of the contract. The arbitration is progressing but has been delayed due to factors including the commencement of bankruptcy proceedings against Uljanik. Wellard will also pursue its rights under a Bank Refund Guarantee issued as part of the Kelpie build contract
page 24 FY19 AR.
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