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Ocean Tankers judicial managers progressing to liquidate firm after expiry of court order

14 Jul 2021

Ernst & Young LLP, the court-appointed judicial manager of Ocean Tankers Pte Ltd (OTPL), has completed most of its outstanding tasks and is planning to apply for liquidation of the company, it said in a recent update to creditors.

“As stated in Notification No. 24, the sale of the Lube Business has been completed,” stated JMs in a recent note to creditors seen by Singapore bunkering publication Manifold Times on Tuesday (13 July).

“In light of this and the fact that the JMs have done all they reasonably can to redeliver the Company’s chartered vessels, the JMs consider that there are no other outstanding matters which must be completed while the Company is under judicial management, save for any adjustments to the Inventory Sum (which should be completed by the time the JM Order expires).

“As such, the JMs are of the view that the Company should be placed into liquidation after the expiry of the JM Order on 31 July 2021.”

The JMs noted certain steps can continue to be taken during the liquidation of OTPL; these steps include defending an appeal filed by the Lim Family against an earlier court decision which awarded OTPL USD 19.02 million in damages, and pursuing the recovery of approximately USD 50.1 million owed by OTPL’s largest trade debtor group.

Moving forward, the JMs informed creditors they have proceeded to file an application for the liquidation of OTPL while recommending themselves to be appointed as liquidators of the company as they have, “spent a considerable amount of time handling the Company’s matters and have already familiarised themselves with the Company’s assets, debts, creditors’ profiles and areas for potential investigation or recovery.”

“The JMs believe that there will be substantial cost savings and efficiencies if they were to be appointed as liquidators.”

Earlier developments regarding Ocean Tankers can be found below:

Related: Singapore: Gulf Oil International to acquire Ocean Tankers lube oil blending facility
Related: First creditors meeting of Ocean Tankers to be held in early January 2021
Related: Ocean Tankers publishes notice for creditors to prove any debts or claims for publication
Related: Singapore: Ocean Tankers Tuas Terminal to undergo voluntary wind up
Related: Ocean Tankers to return most ships to owners to reduce $540,000 a day cash burn
Related: Managers of Ocean Tankers looking to recover USD 19 million from Lim family
Related: Ocean Tankers legal team publishes application to be placed under judicial management
Related: Judicial management applications for Hin Leong Trading and Ocean Tankers delayed
Related: Judicial managers of Ocean Tankers discover discrepancies and fraud in exposure claims
Related: Judicial managers of Ocean Tankers to present restructuring proposals to owners

 

Photo credit: Manifold Times
Published: 14 July, 2021

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