status on the cobalt
We made the initial milestone shipyard payment of $59.5 million on the Cobalt Explorer in July 2013. We agreed with the shipyard to defer the second milestone payment of $59.5 million to July 15, 2015; however, we have not made the payment at this time. We are discussing with the shipyard both a further delay of this payment and possible extensions for the delivery of the Cobalt Explorer beyond the current scheduled delivery in the first half of 2016. If we fail to reach an agreement with the shipyard within 30 days of the due date for the second milestone payment, the shipyard may, at its option, terminate the construction contract. In the event the shipyard terminates the contract, all supplies delivered to the shipyard would become the property of the shipyard, and the shipyard would be entitled to retain all milestone and other payments made by us to the shipyard to date. Furthermore, the shipyard could elect to sell the Cobalt Explorer and may claim any deficiency in proceeds against the Company. The final payment due to the shipyard at delivery is approximately $476.0 million. We are currently pursuing drilling contracts for the Cobalt Explorer, and the commencement, duration and profitability of any such contracts is a significant factor that will affect our financing alternatives.
so two weeks to make secons payment.I think we get an update soon.
If its good we are in verry good shape.
