Court To Decide Fate of Product Tanker Fleet

Wednesday, April 04, 2001
A dispute has erupted in New York courts over control of a fleet of petroleum product tankers, currently working for oil major Shell.

Both the owner of the ships, First International, and an investment fund, which lent most of the $257 million to build the fleet, have asked the court to decide which of them controls the future employment of the six tankers.

The tankers have worked for Shell since new on a seven year contract, at a rate described by brokers as "rather generous", but last year, as widely anticipated, Shell exercised its right to pull out from the deal.

First International, a chain of eight interlinked tanker-owning companies controlled by Norwegian tanker-mogul Tom Steckmest, was left looking for fresh employment.

Steckmest negotiated a fresh charter with Shell at a lower rate, but it is a deal that the investment trust bond-holders have refused to accept.

"They (the bond-holders) have not consented, and will not consent, to the acceptance of the Shell bids..." reads a document filed by the bond-holders at the Southern District Court of New York. "Payments to be made thereunder do not provide sufficient funds..."

Steckmest's First International has asked the same court to force the bond-holders to accept the deal, and to prevent them from "interfering in any way with the shipowner's performance."

Sources close to the bond-holders, who provided over 90 percent of the $257 million to build the fleet, said that if they managed to kick out the Shell deal proposed by Steckmest, they would try to sell the tankers to New York-listed Stelmar.

The deal with Stelmar, which is owned by Easyjet chief Stelios Haji-Ioannou, was originally lined up last summer, when it first became apparent that Shell was pulling out.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Tanker Allision on the Piscataqua River

The U.S. Coast Guard says it is continuing to monitor the condition of the chemical tanker Chem Venus, after it allided with three unoccupied, moored sailboats

NAT Takes Delivery of Suezmax, Earnings Capacity Up

Nordic American Tankers Limited ("NAT" or "the Company") announced that it today took delivery of a Suezmax vessel, the Nordic Sirius, built at a shipyard in Japan.

BIMCO - Oil Product Tankers Earnings Decline as stockbuilding Slows Down

BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.

Maritime Security

US Provides $100 Mln in Port Security Grants

Homeland Security Secretary Jeh Johnson announced final allocations of $275 million for six fiscal year 2016 U.S. Department of Homeland Security (DHS) competitive preparedness grant programs,

MAST, AMSA Partner for Risk Management Services

Maritime security company Maritime Asset Security Training (MAST) has announced their partnership with Astbury Marine Services & Associates (AMSA), a specialist

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0695 sec (14 req/sec)