SINGAPORE - Mainboard-listed Otto Marine, which is in the midst of a takeover offer by its chairman, has taken a second legal action against payment default.
In a filing to the Singapore Exchange on Wednesday (Aug 10), the offshore marine group said it has commenced arbitration proceedings against Vettal Mega Services for failing to pay around US$6 million (S$8.05 million) in charter fees for tugboats Swordfish 5 and Go Enif.
Otto Marine already has another arbitration proceeding ongoing against Robert Kntuzen Shipholdings over payment defaults for two bareboat charters of about US$2.83 million.
Otto Marine said its latest legal action is not expected to have a material impact on its results for the financial year ending Dec 31, 2016.
The group's executive chairman, Malaysian tycoon Yaw Chee Siew, has made an offer of 32 Singapore cents per share to take the company private. If he succeeds, Otto Marine will become the first company from the hard-pressed sector to be delisted.