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Otto Marine issues letter of demand for overdue payment of US$2.8m for charter hire of vessels

OTTO Marine Limited has issued letters to Robert Knutzen Shipholdings Ltd (RKSL) and Robert Knutzen demanding overdue payment of some US$2.8 million in charter hire for two of the group's vessels.

The letters were issued through its lawyers, Rajah & Tann Singapore LLP.

In an announcement to the Singapore Exchange, Otto Marine said that RKSL had taken delivery and operated the vessels and was obliged to pay charter hire for them. Mr Knutzen is the guarantor of the obligations of RKSL under the bareboat charterparties.

Otto Marine said that RKSL has been in default of the charters for an outstanding sum of US$2.83 million plus the applicable interest for overdue payment.

"The company is working closely with the its lawyers to take all necessary actions, including but not limited to the commencement of legal proceedings against the counterparties, enforce its rights under the bareboat charterparties, and safeguard as well as protect the interests and assets of the group," said the company.

Separately, the company said that it has been informed by a subsidiary, Go Offshore (Asia) Pte Ltd that a creditor has filed a application with the Singapore High Court to wind up the subsidiary. The application will be heard on Aug 5. The total sum claimed against the subsidiary is some US$180,000, which the subsidiary is not disputing and is in the process of making payment for.

The counter closed 0.5 Singapore cent or 1.6 per cent lower at 30.5 Singapore cents on Monday.