Primorsk to Reveal Details of Liquidation Plan

Cyprus-based tanker owner Primorsk International Shipping Ltd. has, together with certain of its affiliated debtors and debtors-in-possession, filed Joint Chapter 11 Plan of Liquidation with the United States Bankruptcy Court for the Southern District of New York.

The company is scheduled to reveal the details of its bankruptcy plan before the Honorable Martin Glenn, United States Bankruptcy Judge, today during a disclosure statement hearing.

The shipping company reported a net loss of USD 67.52 million in July as it suffered some USD 69.17 million of fleet impairment charges seen during the month.

Primorsk International Shipping earlier received approval to sell nine arctic-going oil tankers to Russian shipping major Sovcomflot (SCF) for a total of USD 215 million.

The vessels were auctioned off on June 30 in London after Primorsk International Shipping’s restructuring efforts failed.

Ranging from 50,000 dwt to 104,500 dwt, the 2008- and 2009-built vessels were constructed at South Korea’s yards Hyundai Heavy Industries and STX Offshore & Shipbuilding Co. Ltd.

The nine vessels in question are the Aframax tanker Zaliv Amerika, the LR2 tankers Zaliv Vostok, Zaliv Baikal, Zaliv Amurskiy, and the MR2 tankers Prisco Ekaterina, Prisco Alexandra, Prisco Elena, Prisco Elizaveta and Prisco Irina, according to data provided by VesselsValue.

The company filed for bankruptcy in January 2016, as it was 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.

World Maritime News Staff