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Arbitration Begins between Otto marine and Robert Knutzen Shipholding

Thursday, August, 11, 2016


Otto Marine has moved forward with arbitration in Singapore regarding its dispute with Robert KnutzenShipholding and Robert Knutzen personally. The dispute stems from charter contract disputes between the two companies and Knutzen.

 

Otto Marine’s claim is related to bareboat charters that ran from 2009 for two 6000-bhp anchor handling tug supply vessels chartered to KnutzenShipholding. In the original contract, the charter was supposed to last for five years at a rate of $8500 per day. There was also an option two year extension included in the original agreement.

 

Otto Marine, a Singapore-listed company, claims Knutzen and his company are in default for more than $2.8 million in total unpaid charter hire, plus interest. Since Knutzen is the personal guarantor for his company’s obligations under the bareboat charterparties, he is personally included in the claim.

 

Attorneys and representatives from Otto Marine stated the company is working to take all necessary action, including moving the dispute to arbitration and enforcing an award against Robert Knutzen order in arbitration. It also stated it will not limit its action to only arbitration if the process proves unsuccessful. They again pointed out Knutzen is the personal guarantor and since he is there to safeguard and protect interests and assets of the group, he is named in the filing.

 

This is not the only lawsuit filed by Otto Marine in recent days. The company’s Singaporean group’s subsidiary Otto Offshore filed an arbitration claim in the Singapore International Arbitration Center against an unnamed shipyard for the construction of a maintenance work vessel. It also is currently involved in another legal dispute with a creditor and filed. The creditor filed an application to wind up Otto Marine’s subsidiary Go Offshore because of $180,000 in unpaid debts.