AIG Behind Sale
December 6, 2012
An aframax tanker that used to trade with US operator Groton Pacific Carriers has been sold for scrap in a transaction worth over $8m.
Cypress Leasing offered little detail when asked about the 90,700-dwt Glenross (built 1993) but confirmed it fetched around $440 per ldt on an “as is, where is” basis in Labuan.
A portfolio manager at the San Francisco-based investment firm said the transaction was led by AIG Commercial Asset Finance of the US, which held the ship’s mortgage.
The company also denied reports that the demolition deal would mark its departure from the shipowning arena but refused to shed light on how many ships remained in its portfolio.
The transaction was brokered and supervised by Basil Karatzas of Karatzas Marine Advisors, which was hired by the vessel’s creditors to serve at their strategic advisor.
While Karatzas believes the tanker was torched “well before the end of her design life” as a result of chronic depression in the freight space he was pleased with the premium a cash buyer was willing to pay for the unit given the ongoing glut in capacity.
He says the price reflects the quality of an asset that was meticulously maintained before and after cold lay-up in Malaysia, a process that began in early 2011. Groton Pacific formally ended its relationship with the vessel approximately one year later.
International Shipcare, which served as the vessel’s custodian, used generators and dehumidifiers to regulate temperature and humidity in the accomodation and engine rooms while watchman stood guard 24 hours a day, Karatzas noted.
The commentary puts an end to reports that the Glenross in 2007 along with its sistership, Lochness (built 1994), from UK-based Jan Petter Roed for $42m each. The former was sold to Cypress approximately one year later.
The Stamford, Connecticut-based operator is left with one tanker, the 113,000-dwt Oversea Arcadia (built 2008), which is on charter bankrupt US owner Overseas Shipholding Group.