Brightoil Collects USD 200 Mn through Ship Auctions

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Namely, the group’s tanker fleet, that includes 5 VLCCs, 4 Aframax vessels and 6 bunker vessels, was earlier arrested by creditors and its marine transportation business was therefore suspended.

Starting from early May 2019, four of the company’s vessels were put on auction.

On May 2, the High Court of Hong Kong ordered the company to sell the very large crude carrier vessel (VLCC) Brightoil Glory. The unit was sold for USD 58.7 million on May 17.

In early June, the VLCC Brightoil Gravity, which was arrested in Korea, was sold pendente lite (pending the outcome of litigation). Brightoil Petroleum said that the unit fetched a price of KRW 72.4 billion (USD 61.2 million).

Additionally, the company’s Aframax Brightoil Lion and the VLCC Brightoil Grace, which were arrested in Singapore, were sold pendente lite by closed tender. The vessels were sold for SGD 36,608,000 (USD 26.8 million) and SGD 75,106,063 (USD 55 million), respectively.

The company said that the proceeds from the sale of these vessels in the total sum of around USD 201.6 million will be used to repay the liabilities of the group.

Furthermore, Brightoil Petroleum said that the rest of its tanker fleet will continue to be disposed “with the proceeds to be applied further for satisfaction of the liabilities of the group so as to resolve the actions relating to the petition and the application.”

On May 17, 2019, the company was served with a sealed copy of a petition filed by a creditor with the Court of First Instance of the High Court of the Hong Kong Special Administrative Region for the winding up of the company due to its insolvency and inability to pay its debts.