The six liquefied petroleum gas (LPG) carriers owned by the insolvent Varun Shipping have been sold for demolition in the second auction round.
The sale was finalized last week, according to cash buyer GMS, and the ships fetched a price of USD 361 per lightweight tonne (ltd).
The very large gas carrier (VLGC) Maharshi Bhardwaj was auctioned off on an ‘as is’ basis for delivery to Kochin, while the rest of the smaller LPG carriers were all sold on an en bloc ‘as is’ basis at Kandla.
These include Maharshi Devatreya, Maharshi Krishna Treya, Maharshi Bhavatreya, Maharshi Shubhatreya and Maharshi Mahatreya.
The sale was ordered by Bombay High Court on the grounds of a lawsuit launched by Darya Shipping, which was entrusted with the management of the six ships by the Insolvency Resolution Professional (IRP) and the Committee of Creditors (CoC), after Varun filed for insolvency.
Namely, IRP and CoC failed to provide Darya Shipping with financial means for the maintenance of ships, along with the basic provisions for dozens of seafarers manning the LPG carriers and their salaries since December 2017.
Due to improper maintenance, the LPG carriers were dubbed “time bombs” as they posed a danger of exploding, risking the lives of the seafarers as well as the marine environment.