Varun LPG ship auction yields just $2.75m

Varun LPG ship auction yields just $2.75m

The liquidation of once mighty Varun Resources has taken another step forward. An Admiralty court in Mumbai auctioned late last week six Varun LPG carriers with ship recycler NKD Maritime bagging the ships for just $2.75m in total, less than 5% of what Varun owes its banks.

The proceeds from the sale of the six ships will be first used to pay off the outstanding wages to the ships’ crew and the ships’ manager, Fleet Ship Management.

The balance will be paid to a consortium of 12 banks led by State Bank of India.

Out of the six ships, five are in Kandla port and one in Kochi port. Another ship was arrested in Fujairah in the UAE, which is not part of the sale process initiated by the Mumbai Admiralty Court. The six ships will now be recycled.

Varun was helmed by the Khatau family and was one of the five largest LPG shipowners in the world before it ran into financial difficulties.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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