Otto Marine Launches Second Arbitration Proceedings
Singapore-based offshore marine group Otto Marine, which is in the midst of a takeover offer by its chairman, has taken a second legal action against payment default, reports Strait Times.
Otto Marine said it has commenced arbitration proceedings against Vettal Mega Services for failing to pay around US$6 million (S$8.05 million) in charter fees for tugboats Swordfish 5 and Go Enif.
Just last week, Otto also said it has started arbitration proceedings against Robert Knutzen Shipholdings Ltd (RKSL) for alleged default on charter parties.
RKSL allegedly took delivery of and operated two vessels under Otto Marine's fleet under bareboat charter parties dated Jan 15, 2009.
Otto Marine said RKSL has been in default of the charter parties for a sum of over US$2.8 million plus applicable interest for overdue payment.
Otto Marine said its latest legal action is not expected to have a material impact on its results for the financial year ending Dec 31, 2016.
The group's executive chairman, Malaysian tycoon Yaw Chee Siew, has made an offer of 32 Singapore cents per share to take the company private. If he succeeds, Otto Marine will become the first company from the hard-pressed sector to be delisted.
