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.
