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 Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Fredriksen eyes Takeover of Flex LNG

Shipping tycoon John Fredriksen is aiming to take control of Oslo-listed Flex LNG following his purchase of 12.7 million shares that brought his stake in the firm to 43.

A History of U.S. Oil Export Controls

On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war.

US Warns of Sanctions on Buyers of Islamic State Oil

The Obama administration on Thursday threatened to slap sanctions on anyone buying oil from Islamic State militants in an effort to disrupt what it said was a $1-million-a-day funding source.

Maritime Security

General Dynamics is Link Govt-level Security to Consumer Smartphone

General Dynamics C4 Systems recently received the Defense Mobile Classified Capability (DMCC) contract from the National Security Agency (NSA). As part of the contract,

Chief of Naval Personnel Visits Naval Special Warfare

Chief of Naval Personnel (CNP) Vice Adm. Bill Moran visited Naval Special Warfare (NSW) Sailors during an all hands call on Joint Expeditionary Base Little Creek-Fort Story, Oct.

EUCAP Nestor Train 30 Somali Coast Guards

On 21 October, the European Union’s Maritime Capacity Building Mission in the Horn of Africa and Western Indian Ocean (EUCAP Nestor) celebrated the successful completion of a two month Mentoring,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1609 sec (6 req/sec)