Primorsk Files for Bankruptcy Protection

Cyprus-registered tanker owner Primorsk International Shipping Ltd. has filed for bankruptcy with the U.S. Bankruptcy Court in New York, writes the Wall Street Journal.

The company filed for Chapter 11 having been unable to pay up its debt to Norwegian lenders, especially following its ill-timed expansion that forced the oil carrier to dispose of its fleet.

Primorsk resorted to court protection after last week’s seizure of the company’s bank account in London, WSJ said, with bank lenders seeking payment of USD 262.2 million worth of loans.

Should the court protection be approved, the company’s prospects for a bailout are solid as Primorsk remains profitable.

Primorsk International is owned by  British Islands-based holding company Apington Investments, controlled by Russian businessman Alexander Kirilichev. The company has nine ice-class tankers in its fleet engaged in transporting of oil products, edible oil and chemical cargo.

World Maritime News Staff

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