Otto Marine calls for trading halt pending announcement

SINGAPORE - Mainboard-listed offshore shipbuilder and vessel operato Otto Marine called for a trading halt pending release of an announcement before markets opened on Wednesday morning (Sept 14).

On Tuesday, Hoe Leong Corporation said an application by Otto Marine in the High Court to wind Hoe Leong up has been withdrawn upon payment of US$920,000 (S$1.25 million), without admission of liability that the debt is due.

Hoe Leong, which is also listed on the mainboard, makes and distributes heavy equipment spare parts. It also sells offshore support vessels.

Otto Marine has been taking legal action against its debtors as the downturn in the offshore marine sector bites.

It is also in the midst of a takeover offer by its executive chairman, Malaysian tycoon Yaw Chee Siew. Mr Yaw offered 32 Singapore cents per share to take the company private in June.

If he succeeds, Otto Marine will become the first company from the hard-pressed sector to be delisted.

Shares of Otto Marine closed flat on Tuesday at 31.5 cents.