Creditors have sold another ship that used to belong to crisis hit Varun Shipping. The 11-year-old Ocean Mare, an aframax tanker built at Hyundai Samho, has been sold at auction in Singapore, fetching $13.5m from unspecified Greek interests.
As Clarkson Research reports the Ocean Mare has been no stranger to the sale and purchase market over the past couple of years, with the ex-owners (and subsequently the controlling bank) making a number of attempts to sell.
Mumbai-based Varun tried to sell the tanker in June this year but were unable to find a decent price, and the ship was subsequently arrested. Much of the Varun fleet has been arrested in recent months.
Prior to this, the vessel was reportedly committed for $27m in February 2016, although no deal materialised.
Clarkson Research reports the auction attracted the interest of more than eight parties, but the winning $13.5m price is a discount compared to what would be expected for a Korean built aframax of this vintage sold today
“[I]t is important to consider both the nature of the sale and the fact that the vessel has been idle for the best part of three years,” Clarkson Research explained.
Varun has been one of the more high profile shipping casualties during the downturn. Last week it emerged the company has been barred from calling in UAE waters on the grounds that it has repeatedly abandoned ships and crew there.