Vessel Judicial Sales & Liquidation Trustee Services
The role of the liquidation trustee in the case of judicial sales and auctions of shipping assets can be considered the last effort to deliver value under distressed circumstances, challenging times and unfavorable market conditions alike.
Basil M Karatzas has the expertise and proven record for maximizing value
The secondary market for the sale and purchase (usually abbreviated as “s&p”) of shipping assets is a multi-billion dollar industry. Hundreds, and even thousands, of commercial vessels are sold every year among shipowners, in addition to the vessels that are ordered in the primary market (as newbuilding contracts) or withdrawn from the market via the sale for demolition and scrapping.
For the sale & purchase of shipping assets among operating shipowners, with in-house shipping expertise, the transactions are traditionally focused on asset pricing and optimizing the terms of the sale. Operating shipowners have expert knowledge of the shipping industry and the asset, and hands-on asset management expertise; typically, such s&p transactions are at market prices (fair market price) and/or with minimal transaction costs.
A smaller part of the s&p market is among operating shipowners and passive / absentee owners, such as leasing companies, financiers, or institutional investors; one side provides the shipping market expertise and / or the shipping assets while the other side on the transaction provides the capital and the financing but lack the industry expertise and hand-on asset management. Such s&p sales can be priced above, at or below market as there are many variables to the transaction, and each side has their own preferences, parameters, advantages, or even handicaps, for engaging in such transaction. As such, intermediaries and brokers to transactions of this nature are depended upon to do much more than “brokering” assets – they are also trusted advisors and an integral part of the transaction.
An even smaller segment of the s&p market affects transactions where at least one side of the transaction has stopped having a direct access or material interest in the asset or have to be represented by fiduciary agents for the transaction to take place. An example of such transactions are judicial sales where a court in a competent jurisdiction steps in to affect the sale. Depending on the jurisdiction and local customs, the court may appoint local marshals to provide custody of the shipping asset when the asset is under arrest locally, or otherwise ensure secure safekeeping of asset. In other cases, the court would assign an insolvency administrator or liquidation trustee to look after the asset and also effect the sale and optimize the sale price and the recovery for all the creditors involved. Judicial sales and services of an insolvency administrator or liquidation trustee are usually very delicate, and almost always complicated, as many more parties are involved and there are time pressure, and even high considerations (i.e. abandoned crew, safety, security, maintenance, pollution, etc)
Basil M Karatzas has a long and successful track-record acting as an intermediary - whether as shipbroker, advisor, appraiser, finance arranger, liquidation trustee - for newbuilding contracts, sales in the secondary market (s&p) and demolition sales; Mr Karatzas has extensive record of consummating transactions among shipowners and financial institutions, providing profound expertise and insight to such transactions where market knowledge can be very lopsided; further, Mr Karatzas has worked extensively with insolvency administrators and liquidation trustees for the sale of shipping assets in the tanker, dry bulk, containership, and other niche markets, in the US and in foreign jurisdictions, often under very adverse circumstances, but always delivering solid results that have earned the respect, and, sometimes, the envy of the competition.
JULY 23, 2018
Japan’s Itochu aims to recoup millions as supplier’s tuna seiners face liquidation
JUNE 25, 2018
Basil M Karatzas obtains prestigious Accredited Senior Appraiser (ASA) designation .
APRIL 30, 2018
Basil M Karatzas appointed Liquidation Trustee by the High Court of Republic of Marshall Islands.
SEPTEMBER 19, 2016
Shipping Banks Face Sinking Prospects as the Postpone Reckoning