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 November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Egypt to Complete East Port Said Side Channel in 2016

Egypt plans to complete a side channel in East Port Said, near the Suez Canal, that would speed up shipping and allow ships direct entry into the port by the end of June 2016,

Concordia Maritime Charters MR Tanker

Concordia Maritime has signed a contract for the charter of an IMO2/3 class MR tanker, the company announced today. The vessel will be chartered jointly with Stena Weco,

Stena Bulk Orders Tankers from China

Stena Bulk has placed an order for three 50,000 dwt IMOIIMAX MR tankers with the Chinese shipyard CSSC Offshore & Marine Engineering (CSSC OME), formerly Guangzhou Shipyard International (GSI),

Maritime Security

U.S. Ups Philippines Aid as South China Sea Turmoil Builds

The United States has raised its military aid to the Philippines this year to $79 million, the U.S. ambassador said on Wednesday, as tension rises in the region

Hague Court Begins Hearing On South China Sea Issue

A United Nations arbitral tribunal in The Hague heard some of the Philippines’ territorial claims over the disputed Spratly Islands in the South China Sea on Tuesday.

Philippines Takes South China Sea Claim to Hague

Could bolster claims by other countries against China; China boycotting proceedings, rejects court's authority. The Philippines asked global judges on Tuesday

Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0733 sec (14 req/sec)