Ocean Rig accused of fraudulent practices

Ocean Rig accused of fraudulent practices

In its latest filing to the SEC in New York, George Economou’s Ocean Rig has revealed previously unreported litigation against the rig operator.

Ocean Rig sought bankruptcy protection in late March, saddled by billions of dollars of debts. In the ensuing months a number of legal cases have cropped up. The latest has only just come to light, buried in an SEC filing.

Ocean Rig has revealed that at the end of last month another lawsuit was filed in the High Court of the the Marshall Islands by a number of its creditors against two of its subsidiaries, two of its executive officers, its manager TMS Offshore Services and other parties.

The complaint alleges nine causes of action, including claims for avoidance and recovery of actual and/or constructive fraudulent conveyances under common law and aiding and abetting fraudulent conveyances. Ocean Rig said it would respond to the complaint.

“We and our management believe that the complaint is without merit and plan to vigorously defend ourselves against the allegations,” the company stated.

Economou faces a raft of legal cases, not just at Ocean Rig but also at another of his companies, DryShips where many disgruntled investors have taken action against the Greek mogul.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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