Otto Marine reaches settlement with GC RieberCompany News // October 14, 2010
Otto Marine Limited has announced that it has entered into a heads of agreement with GC Rieber Shipping in connection with what it called "a mutually beneficial global settlement" between the Group and GC Rieber related to certain claims on Polar Marine II Pte Ltd. Polar Marine is an entity which is 49 per cent owned by the Group and 51 per cent owned by GC Rieber respectively.
The global settlement includes the claims on Polar Marine and the termination of the joint venture agreement for Polar Marine. The joint venture covered four vessels of MT6009 Norwegian design. Under the settlement, Otto Marine takes over three vessels leaving one to GC Rieber.
Otto Marine had already chartered out one of the three vessels (Otto Explorer) and now has sold another one. The Group’s wholly-owned subsidiary, Sailfish 2 Pte Ltd, has entered into a memorandum of agreement to sell the vessel to the customer for a consideration of 24.1 million Euros.
“We are quite pleased to have reached the mutually beneficial global settlement with GC Rieber as it enabled the settlement of an overhanging issue and paves the way forward for the further progress of the Group," said Mr Lee Kok Wah, President/Group Chief Executive Officer.
"Under the settlement, we have taken over three vessels of the MT6009 design. These sophisticated vessels have good potential as can be shown from Otto chartering out the first vessel and now selling of the second one at a competitive price.”