The application for the judicial management of the Singapore Overseas Support Vessel (OSV) owner and Otto Marine, the builder, has been approved by the court and will be administered by the court.
Otto Marine is currently in debt of $877 million. On February 20, Otto Marine filed a takeover application with the court, hoping to turn a profit under the supervision of the court, and to avoid the creditors while restructuring the debt.
At present, the Singapore High Court has approved Otto Marine's application, and appointed Chee Yoh Chuang and Lin Yueh Hung as managers of RSM Corporate Advisory. With the approval of the court, Otto Marine will be able to reach an agreement with the creditors on the $877 million in debt.glenflange
Last month, when applying for judicial administration, Yaw Chee Siew, chief executive of Otto Marine, stated that he will not continue to take on corporate debt and inject new capital into the company. He said that depending on the cash reserves, Otto Marine may be able to support another two months. However, he expects that with the slow recovery of the oil and gas market, the company has a reasonably reasonable chance of recovery.
Otto Marine faced bankruptcy more than a year ago, when Qiu Zhixiao acquired the company and became the largest creditor, with $208 million in debt currently attributed to Qiu Xiaosha and its subsidiaries. However, just 16 months later, Otto Marine was once again in trouble and filed for bankruptcy protection.
According to court documents, as of the end of last year, Otto Marine had $869 million in assets, most of which are unlikely to be fully recovered.glenflange
In an application for judicial administration last month, Qiu Zhishao stated that Otto Marine has obtained a letter of intent from an anonymous potential investor. It has been reported that Malaysian company Barakah Offshore Petroleum is considering becoming an investor to save Otto Marine.