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Tue 17 Sep 2013 04:48 PM

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Dubai-owned tanker detained in Holland over loan default

Loss-making Gulf Navigation Holding may be forced to sell the vessel to cover debts

Dubai-owned tanker detained in Holland over loan default
crude oil tanker (ATTA KENARE/AFP/GettyImages)

A crude oil tanker owned by Dubai’s Gulf Navigation Holding, which was detained in Rotterdam after the loss-making firm defaulted on a loan repayment, may see creditors sell the vessel in order to reclaim the outstanding funds.

“Gulf Sheba, the very large crude carrier (vlcc) was discharging at Port Rotterdam, when DNB, agent of the lenders for Gulf Sheba Corporation, issued notice of arresting the vessel,” the company said in a statement to the Dubai Financial Market (DFM).

“The reason for the arrest is default in repayment of interest and principal toward end of July 2013,” it added.

The vessel has now been moved from the berth and will remain anchored in Rotterdam while negotiations with creditors continue.

“Lenders may insist on selling the vessel to repay their obligations, as per the notice of foreclosure of loans issued by them,” the DFM statement added.

Gulf Navigation said it in talks with its legal team and was confirmed it was in “the final stages of agreeing on various terms in principle with at least one serious buyer."

The firm reported its net loss had widened to AED147.83m ($40.24m) in 2012, compared to a loss of AED72.7m for the same period last year.

For the first half of 2013, it also reported a loss of AED29.7m, compared to a loss of AED12.37m for the same period in 2012.

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