The Board of Directors of Otto Marine Limited (the “Company”) refers to (a) its earlier announcement dated 23 December 2010 in relation to the filing of a notice of arbitration by its wholly-owned subsidiary, Otto Offshore Limited (“Otto Offshore”) on certain Mosvold related entities, and (b) the subsequent announcements dated 27 December 2010 and 25 May 2011.
The Company wishes to announce that Otto Offshore has received a letter dated 30 May 2011 from Mosvold Supply II Ltd terminating the contract for the construction of Builders Hull No. 7048 and demanding the refund of all advance payments and interests amounting to USD26.7 million.
The Company will make further appropriate announcement as and when there are material developments on this matter.
The above transactions are not expected to have a material impact on the Company’s net tangible assets and earnings per share for the year ending 31 December 2011.
[mappress] Source: Otto Marine, May 31, 2011;