Mosvold Supply Plc, in 2007 contracted Otto Offshore Ltd, a wholly owned subsidiary of Otto Marine Limited, to build a series of four AHTS (VS 491 CD) vessels. Mosvold Supply Plc shortly thereafter transferred these contracts one each to four single purpose wholly owned subsidiaries. Mosvold Supply IV Limited, one of these wholly owned subsidiaries, yesterday cancelled hull no 7050, the fourth vessel in the series.
Mosvold Supply I Limited, Mosvold Supply II Limited and Mosvold Supply III Limited, three of the other wholly owned subsidiaries of Mosvold Supply Plc., on 18th May 2010, 30th May 2011 and 25th July 2011 respectively, cancelled the first, the second and the third of the four vessels in the same series, and subsequently received full refund of instalments paid including interest by calling on the refund guarantees from the guaranteeing bank, Otto Marine Ltd. having failed to make repayment on demand.
The Company is according to the shipbuilding contract entitled to a refund of instalments paid including interest, and has today made a demand thereon to Otto Offshore Ltd.
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World Maritime News Staff, February 28, 2012; Image: Otto Offshore