Primorsk International Shipping taking bids for sale of nine vessels

By Caroline Salls

Pittsburgh, April 19 – Primorsk International Shipping Ltd. requested court approval of the bid procedures for the potential sale of nine vessels, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

“The debtors believe that the vessels may prove attractive to potential buyers in the product tanker and crude oil tanker industry, and that the sale of the vessels may generate significant proceeds for the benefit of the debtors’ creditors and, potentially, other stakeholders,” Primorsk said in the motion.

The company said the final decision on whether to sell any of the vessels will come after bids are reviewed.

Bids are due by noon ET on June 15.

Primorsk said it may enter one or more stalking horse bid agreements, and it would pay those bidders a 1% break-up fee if they are not ultimately the winning bidders for the vessels.

The bid procedures motion is scheduled for April 28.

Primorsk, a Nicosia, Cyprus-based Arctic oil shipper, filed bankruptcy on Jan. 15. The Chapter 11 case number is 16-10073.

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