Mexican Offshore Company Cotemar Takes Legal Action Against ABSG for Unpaid Due of $59.4 Million

Cotemar's Legal Battle for Fair Compensation

In a striking move to recover substantial dues, Cotemar S.A. de C.V., a prominent Mexican offshore services company, has initiated legal proceedings in New York against ABSG Consulting, Inc. This legal action arises from an unpaid debt of $59.4 million, which has been outstanding for over eight years. Cotemar is seeking recognition of a Mexican court ruling that mandated ABSG to settle this amount.

Background of the Dispute

Cotemar's conflict with ABSG, a subsidiary of the American Bureau of Shipping, began in 2017 when ABSG contracted Cotemar to provide essential logistical support, including personnel and equipment, for the installation of a modular drilling rig in the Gulf of Mexico. The work, crucial to ABSG’s operations, was successfully completed by March 2018. However, despite providing signed certificates confirming satisfactory completion of the project, ABSG has refrained from making any payments.

ABSG’s justification for withholding payment stemmed from claims of ongoing discussions with the prime contractor, Tamaulipas Modular Rig, S.A. de C.V., regarding payment. This assertion was refuted during the litigation process, as evidence revealed that TMR had already compensated ABSG fully for the work performed. This critical piece of information was substantiated by bank transfer records that surfaced during Mexican court proceedings.

In July 2018, Cotemar filed for legal recourse in Mexico City. A trial court ruled favorably for Cotemar on March 30, 2022, establishing that ABSG had acknowledged the debt and received the service rendered satisfactorily. Further reinforcing Cotemar’s position, a Collegiate Appellate Court upheld this judgment in June 2023 after rejecting ABSG’s appeal.

Implications of the Legal Action

The decision to escalate this matter to the Supreme Court of the State of New York marks a significant step for Cotemar, as it pursues the enforcement of a Mexican ruling within the United States judicial system. As the case unfolds, the total claim, including accrued interest under both Mexican and New York law, stands at $59.4 million.

Cotemar is represented by experienced legal counsel from Sullivan & Cromwell LLP, aiming to ensure that justice is served and that the company’s rights are upheld. This case not only highlights the complexities involved in international contracts but also raises questions about the integrity of corporate financial obligations across borders.

About Cotemar, S.A. de C.V.

Founded in 1979, Cotemar has become a trusted name in offshore exploration and production services. With a solid commitment to operational efficiency, social empathy, and customer collaboration, Cotemar strives to provide comprehensive solutions that adapt to the evolving needs of the industry.

The company’s unique infrastructure in the Gulf of Mexico, combined with nearly five decades of experience, positions it as a market leader among offshore service providers. Cotemar prides itself on delivering projects with precision—every time. The company’s dedication is further demonstrated through its emphasis on timely execution and a culture centered around transformation and resilience.

To learn more about Cotemar’s background and services, visit Cotemar's website and stay connected through their social media channels on Facebook, Twitter, and LinkedIn.