Otto Marine launches dispute over unpaid hire for two vessels
- Business & Finance
Singapore’s offshore marine group Otto Marine has launched arbitration proceedings against a charterer that failed to pay hire for two vessels.
Otto Marine said on Wednesday that two of its subsidiaries, Swordfish 5 Pte Ltd and GO Offshore, have each started the proceedings under the London Maritime Arbitrators Association Terms 2012 against Vettal Mega Services, a provider of maritime operations and offshore support services in Nigeria.
This is in connection with bareboat charterparty contracts for two anchor handling tug vessels, the Swordfish 5 and the 2010-built GO Enif.
According to Otto Marine’s statement, among other things, the charterer has failed to pay hire due and owing for an aggregate quantum in the region of $6 million under the contracts.
“The company is working closely with its lawyers in connection with the legal proceedings, to, inter alia, enforce the subsidiaries’ rights under the contracts, and safeguard as well as protect the interests and assets of the group,” Otto Marine said.
The company also recently started arbitration against Robert Knutzen Shipholdings under two bareboat charterparties dating back from January 2009 in respect of two Otto’s vessels.
According to Otto Marine, Robert Knutzen Shipholdings had taken delivery of and operated the two vessels and was obliged to pay charter hire. However, Robert Knutzen Shipholdings has been in default of the charterparties for an aggregate principal outstanding sum of $2.83 million plus the applicable interest for overdue payment.
Offshore Energy Today Staff