Otto Marine takes action against yardNews // August 1, 2016
Otto Marine Limited says its subsidiary Otto Offshore Limited has instructed Shearman and Sterling LLP to commence an SIAC arbitration against the seller under a shipbuilding contract for construction of a Maintenance Work Vessel.
Among other things, the seller has failed to resolve outstanding defects and punch list items in accordance with its obligations, and has refused to allow an inspection of the vessel for the subsidiary to determine if the vessel is in a deliverable state.
Otto Marine said its subsidiary is seeking, among other things, declaratory relief to ensure that all outstanding defects and punch list items will be adequately resolved prior to taking delivery.
The group is working closely with its lawyers in connection with the legal proceedings, to, inter alia, enforce the subsidiary’s rights under the contract, and safeguard the interests of the group.
The company said it had taken all reasonable care to ensure that the facts stated in the announcement are fair and accurate.