Yaw Chee Siew News

Singapore-based offshore shipbuilder Otto Marine is seeking insolvency protection from the High Court in a bid to salvage the company and stave off liquidation. According to a report in the Straits Times, crippled with a debt of US$877 million (S$1.16 billion), the troubled company, which is delisted from the Singapore Exchange (SGX), filed an application last week to be placed under judicial management. The company  has applied for an interim judicial manager to be appointed, pending the hearing of its judicial management application. The hearing has been adjourned to March 12. According to Bloomberg, shipbuilder wants to turn itself around under the court’s supervision and fend off creditors while it restructures its debt, according to its Feb. 20 application for judicial management.

Otto Marine Ltd. said three creditors filed three such applications with the Supreme Court of Western Australia to wind up  its subsidiaries in Australia - Go Inshore Pty and Go Marine Group Pty, says a report in Bloomberg. Creditors are claiming A$787,204 (S$814,580) from the offshore marine group. The total sum claimed against the subsidiaries pursuant to the applications is in the approximate quantum of A$787,204, the company said. The management of Go Marine Group is seeking legal advice and plans to dispute the debts. The cases will be heard on Nov. Otto Marine itself has been taking legal action against its debtors as the downturn in the offshore marine sector bites.

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.

Shares in Singapore-based oilfield services firm Otto Marine Ltd jumped 37 percent on Thursday after the company received an offer from its majority shareholder to take it private. Executive Chairman Yaw Chee Siew, who owns 61 percent of the company, offered S$0.32 per share in cash through a special purpose vehicle, according to a stock exchange filing late on Wednesday. The company, which has a current market capitalization of S$67 million ($50 million), is the latest among a growing number of Singapore companies which are going private as valuations take a beating.

Singapore's Otto Marine Ltd. says that its 90% owned subsidiary, Go Marine Group Pty Ltd. has entered into a Memorandum of Agreement to sell the 7 vessels concerned to RSOV Marine Pte Ltd for an aggregate sum of US$10 million. The vessels are named: GO 4 IT, GO Puriya, GO Shaula, Piparn, Yikara, Minotaur and Centaur. Otto Marine add that Mr Yaw Chee Siew, its Executive Chairman and controlling shareholder, owns a 29% interest in the issued and paid-up share capital of the buyer, with the remainder held by an unrelated third party.

Otto Marine Limited1, an offshore marine specialist, announced results for the first quarter of financial year ending 31 December 2009. Revenue for the Group increased by 25.2% in 1Q2009 to S$71.7 million from S$57.3 million in the previous corresponding quarter due to an increase in the Group’s shipbuilding business, which saw a growth in the number of vessels constructed, particularly the larger and higher specification vessels. The revenue growth was partially offset by a decrease in revenue from the ship repair and conversion business as the Group shifted its focus away from ship repair and conversion to shipbuilding. Gross profit rose 10.1% to S$15.0 million in 1Q2009 compared to S$13.6 million in 1Q2008 in line with the growth in revenue.