LISTED diversified offshore marine player, Otto Marine said after Wednesday trading hours it has commenced arbitration proceedings through a law firm against Robert Knutzen Shipholdings Ltd (RKSL) for alleged default on charter parties.

RKSL allegedly took delivery of and operated two vessels under Otto Marine's fleet under bareboat charter parties dated Jan 15, 2009.

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

Robert Knutzen, a shipping veteran, is the personal guarantor to the charter parties, Otto said.

According to trade media reports, Mr Knutzen was the former right-hand man of Fred Cheng, the founder of Golden Ocean, a dry bulk shipping firm that was acquired in the late 1990s by Norwegian shipping magnate, John Fredriksen.

Otto Marine's appointed lawyers are Rajah & Tann Singapore LLP. The listed offshore marine player is working closely with its lawyers to take all necessary actions, including but not limited to progressing the said arbitrations and enforcing any arbitral awards against Mr Knutzen as personal guarantor so as to safeguard and protect its interests and assets.