Otto Marine Settles Contract Dispute

Thursday, October 14, 2010

A year after a shipbuilding contract dispute emerged between Otto Marine unit Otto Offshore and GC Rieber Shipping ASA, a settlement has been reached.
Otto Marine announced that it has entered into a 'mutually beneficial global settlement' with GC Rieber, which includes settling the claims from last year and terminating the joint venture agreement for Polar Marine II Pte Ltd - the firm that is 49 per cent owned by Otto Marine and 51 per cent owned by GC Rieber.
The joint venture included four vessels and as part of the settlement, Otto Offshore will take over three of them while GC Rieber will take over the remaining one.
Of the three vessels, Otto Offshore had chartered out one and also announced yesterday that it had agreed to sell another one for 24.1 million euros (S$43.8 million). The sale is not expected to have a material impact on the consolidated net tangible assets per share or earnings per share of Otto Marine for its financial year ending Dec 31, 2010.
Prior to the dispute, Otto Marine and GC Rieber had entered into a joint venture to operate and manage vessels on charter through their joint venture vehicle, Polar Marine II.
The dispute over a 23.5 million euro contract came to a head in October last year, during what had already been a dismal time for the offshore sector.
Otto Offshore had tried to postpone the delivery of a vessel to Polar Marine II to Oct 30, 2009.
On Sept 25, 2009, Polar Marine II had in turn told Otto Offshore that if the refund guarantee under the shipbuilding contract was not extended before Sept 27, it would issue a notice of cancellation and make a claim on the refund guarantee.
Polar Marine II also undertook to withdraw the notice of cancellation and the claim under the refund guarantee - if the refund guarantee were to be extended on or before Oct 1, 2009.
Polar Marine went on to both issue a notice of cancellation and make a claim on the refund guarantee two days later.
On Sept 28, 2009, Otto Offshore extended the refund guarantee, but Polar Marine refused to withdraw the notice of termination and its demand under the refund guarantee, as it had previously undertaken to. This resulted in Otto Offshore serving an arbitration notice on Polar Marine II - in which management and control was maintained by GC Rieber.
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

UK Will Force Fridman to sell N.Sea Assets

Britain is ready to force the sale of Russian oligarch Mikhail Fridman's recently acquired North Sea energy assets unless it receives unspecified assurances within the next week,

General Dynamics Board Increases Dividend

The board of directors of General Dynamics today declared a regular quarterly dividend of 69 cents per share on the company's common stock, payable May 8, 2015,

MacGregor Wins Chinese Shipyard Order

MacGregor, part of Cargotec, has received an order from Wuhu Xinlian Shipyard in China for eight MacGregor dry bulk cement handling systems.   The fully automated

Shipbuilding

Tank Coating for Navig8 Chemical Carrier Newbuilds

Shipowner Navig8 is progressing application of Interline9001, an advanced cargo tank coating from AkzoNobel’s International marine coating product range, on a series

Lamprell Delivers Jackup Rig to Greatship

Lamprell announced it has completed construction on jackup drilling rig Greatdrill Chaaru, delivering the rig to Greatship Global Energy Services Pte. Ltd.    Greatdrill

Food Handling Products Ordered for Ovation of the Seas

ALMACO informs it has been contracted to deliver food handling products for the Royal Caribbean International’s Ovation of the Seas, the third Quantum-class ship

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1244 sec (8 req/sec)