Otto Marine has successfully defended a multi-million-dollar claim in the Singapore International Arbitration Centre and has commenced another arbitration in London.
The Singaporean company’s subsidiary Otto Ventures (OV) won an arbitration in which claimants, an unnamed holding company and its subsidiary, had claimed $8.88m in damages related to the failed acquisition of two offshore suppport vessels.
Otto Ventures entered into a term sheet with two other parties in September 2015 for the acquisition and operation of the two vessels. In their claim, the claimants alleged OV had breached the agreement by refusing to help secure the requisite financing for the offshore pair.
The tribunal dismissed the claims against OV in their entirety, and ordered the claimants to bear all OV’s costs and expenses in
relation to the arbitration, as well as those of the Singapore International Arbitration Centre and the tribunal’s fees and expenses.
Meanwhile, in London, Otto’s subsidiary Karp Marine has commenced an arbitration against Mexico’s Grupo Evya SA de CVe, a charterer of one of its vessels, the offshore work maintenance vessel Oranda-1.
Karp Marine claims the charterer has failed to pay hire and interest due and owing under the the bareboat contract, with around $10.5m owed in hire and interest, which continues to accrue.
“The company is working closely with its lawyers in connection with the legal proceedings, to, inter alia, enforce [Karp]’s rights under the contract, and safeguard as well as protect the interests and assets of the group,” Otto said today in a filing to the Singapore Exchange.