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Monday, August 03, 2009

Eastwind tankers liquidated

Monday, 03 August 2009

Reports from the US have confirmed that a US Judge has approved Tokyo Star Bank (TSB) foreclosure request on five product tankers previously operated by Eastwind, which filed for Chapter 7 liquidation in June. The vessels covered by the order were ‘Amundsen Wind’, ‘Arafura Wind’, ‘Arabian Wind’, ‘Azov Wind’ and ‘Aral Wind’.
According to the press reports, on 17th July, TSB requested changes to the automatic stay, allowing the bankruptcy trustee to surrender the tankers. “The trustee needs to act swiftly regarding the TSB vessels, the crews and their safety,” the bank reportedly said, noting that “the trustee is unable to continue to operate the vessels”.
TSB was owed $23.1 mill in remaining payments on a $41.6 mill loan to Eastwind subsidiary Kura Shipping, secured by first preferred mortgage liens on the five ships.
Both the Eastwind trustee and TSB agreed that there was “no remaining equity in the collateral above the TSB indebtedness”.
Judge Allan Gropper allowed TSB to accelerate the indebtedness and “foreclose on, take possession and manage or sell the collateral [the product tankers]".
The original TSB request had named a sixth vessel, a drybulk carrier, which was not covered by the order.

Source: Tanker Operator