Mermaid Maritime and China Merchants Industry (CMI) have mutually agreed to scrap a newbuilding contract worth $124.8m.
The Singapore-listed company said it has already paid $20.4m under the deal, which was signed nearly two years ago.
CMI and Mermaid had already agreed to delay the delivery of the vessel to 30 June 2017, but in light of the challenging market they decided to terminate the contract indefinitely.
As part of the settlement, the vessel now belongs to CMI while Mermaid has received $1m for expenses related to the contract.
Mermaid has already recognised an asset impairment on the ship in its 2015 accounts.
In a separate development, Mermaid has also decided to liquidate three dormant subsidiaries.
It explained this move is part of its ongoing consolidation and cost-efficiency scheme.
Thailand-headquartered Mermaid operates a fleet of 13 owned and chartered offshore vessels.
