Cash-strapped Norwegian shipowner IMSK is continuing its legal fight with MAN Diesel & Turbo despite its potential liquidation.
The company has ended its Singapore restructuring after banks called in loans.
This meant funding for litigation over engine performance was unavailable.
The legal process was progressing well, it added, so it was assigned to a third-party which could pay legal fees in return for a cut of any award.
Many of the cases are to be heard very soon.
The assignment may be reversed in certain circumstances, IMSK said.
IMSK has been trying to claim up to $20m for excess fuel consumption in Norway from MAN.
Legal action relates to six of eight medium-speed diesel engines bought between 1999 and 2006.
This action came in addition to an award at the ICC International Court of arbitration last year.
Arbitrators held that IMS had proven that all eight engines consumed considerably more fuel oil than shown in the official factory acceptance tests (FAT) for these engines and considerably more than the level warranted by MAN, Skaugen said.
This resulted in a refund of $15.5m to Skaugen.
It had filed a $20m compensation claim in Singapore in 2015.
MAN's counterclaims
MAN has said it has "substantial outstanding claims against Skaugen out of different supply contracts.
"MAN Diesel & Turbo had tried to amicably settle these issues out of court and had been negotiating with this customer for several months.
"The customer had cancelled the negotiations unilaterally.
"The majority of these proceedings were decided in favour of MAN Diesel & Turbo."
