M.T. PRATIBHA NEERA 

  • M.T. Pratibha Neera timeline for auction sale of the vessel scheduled by the Bombay High Court, reserve bid fixed at INR 23 crores,

    The Admiralty Judge Mr. Justice S.J. Kathawalla of the Bombay High Court had ordered arrest of two vessels namely m.t. Pratibha Tapi and m,t. Pratibha Neera in one admiralty suit filed by Indian Register of Shipping through their attorney Ms. S. Priya. The vessel m.t. Pratibha Tapi was given priority for auction sale as the vessel was in a bad condition and was auction sold for INR 18.25 crore to a ship breaker. The Bombay High Court have now scheduled the timeline for auction sale of the vessel m.t. Pratibha Neera and the reserve price for the vessel is fixed at INR 23 crore. The auction sale of the vessel m.t. Pratibha Neera is scheduled before the admiralty judge on August 23, 2013 at 3.00 PM. Pacific Ship Supplies Pte Ltd and Avalontec Singapore Pte Ltd, both Singapore based company have also filed legal action by filing an admiralty suit in the Bombay High Court and have arrested the said ship through their solicitors Brus Chambers. The vessel is presently lying at Visakhapatnam, India. Copy of the order for sale of the vessel can be downloaded by clicking here.

     

    Private sector shipping company Pratibha Shipping, owned by A.N. Pawar and family which had a fleet of nine oil tankers, ran into financial crunch, had planned to dispose of their ships. The company had not been paying salaries regularly for more than a year. But no one shed a tear till the company’s vessels were held up, as shipping industry has been facing prolonged recession.  All their vessels are now either auction sold or scheduled to be sold. For the past couple of months, the financial position of the company has been deteriorating which has resulted in the stranding of all nine ships, statutory and mandatory certificates (of ships) had also expired.  

    Earlier the company had plans to renew the ship's statutory certification and thereafter continue commercial operations with m.t. Pratibha Neera (double hull, 28,610 DWT) but this did not work out.


    It is understandable for a company in financial trouble to borrow as much as possible. But the case of Pratibha is unbelievable. A Mercantile Marine Department official said in the case of some ships, the company had borrowed several times the value of the ships, most of which are over 30 years old. It is learnt that against one or more ships, the company borrowed as much as Rs 100 crore, although the value could be a fourth of that. How the lenders agreed to such a high leverage is anybody’s guess. Details of the bank loans could not be obtained. However, it is learnt that co-operative banks have the maximum exposure to Pratibha Shipping. As on March 2011, the company had outstanding term loans of over Rs 270 crore from banks such as Cosmos Co-operative Bank, Saraswat Bank, Axis Bank, State Bank of India and Corporation Bank, according to data available with a rating agency, which had suspended its rating recently.

     

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