Arrested vessel auctioned for R164m

Clear Asset Auctions

A large 2006 Korean-built chemical and oil tanker has been sold, in a hotly contested auction in Durban, for R164 million.

The vessel, named "Pretty Scene", which has been under judicial arrest in Durban for 18 months, was sold by online auctioneers Clear Asset and, with interest from Nigeria, Brazil, the US, Greece, the UAE and across Asia, the auction took just 45 minutes to reach a final bid of $12 million (about R164m), excluding the additional payment of bunker fuel at $288 282 (R3.9m).

The vessel, which was bought by a Chinese buyer, measures 183m in length, 32.2m in breadth and has a gross tonnage of 30 068.

The tanker was under judicial arrest following a dispute between shareholders of the original owners, the Parakou Group in Asia.

This is the fifth major international vessel sale in South Africa and Namibia by Clear Asset in the last 23 months, with 2016 confirming $40m for commercial maritme arrests.

The auction took place at the premises of Bowmans in Durban, the correspondent law firm in the matter who were acting on behalf of Credit Agricole Asia Ship Finance and instructed by Clear Asset, a maritime and mining auction house, to take the vessel to public auction.

The tanker had to be sold within 90 days of the final court order of November 1.

"There is no doubt that we are seeing an increase in such vessels going to auction.

"The key to this sale was to ensure a central portal for swift due diligence as a means to facilitate preparation by international participants," said Ariella Kuper, managing director of Clear Asset.

"Thereafter, such interest was supported by inspections on board the vessel, with approval being required in advance by the Sheriff and launches onto the vessel (at anchorage) arranged by court appointed agents, Rennies," said Kuper.