UK shipowner and private equity group Reuben Brothers has confirmed the acquisition of part of the fleet of bankrupt Italian shipowner Rizzo Bottiglieri De Carlini Armatori (RBD Armatori).
It has formed a new company, RB|RD Armatori, with the participation of the Rizzo and De Carlini families, to take over the company and eight of the RBD Armatori ships.
The transaction was carried out under Italian bankruptcy law and was supervised and approved by a court in Torre Annunziata, Naples.
"RB|RD’s proposal was seen by all stakeholders, including, but not limited to, creditors and employees, to be the best possible outcome," Reuben Brothers added.
Reuben Brothers acquired seven bulkers and a tanker in the deal.
Five other RBD Armatori tankers were assigned to a major creditor controlled by KKR-backed private equity platform Pillarstone.
Based in Naples
RB|RB Armatori will have its headquarters in the Naples region and will be a going concern as part of the wider Reuben Brothers organisation, which includes shipowning arm RB Shipping and the management joint venture with UK owner British Marine, RB British Marine.
A Reuben Brothers spokesman told TradeWinds the ownership split is 75% for Reuben Brothers and 25% for the Italian families.
"RB|RD Armatori is currently a separate platform but controlled by Reuben Brothers, where the Reuben Brothers team is implementing the Reuben Brothers procedures, reporting, etc on all fronts (including operations, chartering) and RB|RD will remain in the Naples region."
RB|RD Armatori has also taken over RBD Armatori's remaining assets, including the iconic Hotel La Palma in Capri, which is expected to undergo major refurbishment.
The new company's formation was assisted by a team of Italian and international lawyers led by Gianni, Origoni, Grippo, Cappelli & Partners.
Reuben Brothers already owns seven 81,000-dwt modern bulkers and has previously said it was planning to control a 50-ship fleet, including managed units.
Backlash in Italy
It is controlled by publicity-shy, self-made billionaires Simon and David Reuben.
Last year, Pillarstone's acquisition of $350m of distressed Italian shipping debt and the cancellation of the fleet auction of RBD Armatori provoked a backlash in shipowning circles.
Italian shipowning and financial sources believed banks had caved in by selling Italian shipping debt to private equity players on the basis of unrealistic expectations, TradeWinds reported.
A court auction of RBD Armatori’s fleet of six tankers and seven bulkers, as well as real-estate interests, was scheduled for 22 February last year, but it was cancelled after private equity interests linked to Reuben Brothers were said to have stepped in with an estimated $300m offer.
The move for the three aframaxes, three LR2s, three capesizes and four post-panamaxes was thought to pave a way back into shipping for former RBD Armatori managing director Giuseppe Rizzo.
Tangled history of failed sales
The Italian court had been trying to sell the ships since 2018, first at $200m, then $190m.
In 2017, Pillarstone took over €560m ($621m) of debt on the fleet.
The bulkers were built between 2009 and 2011 in China, while the tankers are Chinese and Japanese-built and were delivered between 2010 and 2012.
VesselsValue estimated the fleet was worth more than $270m.
RBD Armatori collapsed after failing to reach an agreement with creditors. Foremost among those was Pillarstone.
Local reports suggested that RBD Armatori’s total exposure to banks was in excess of $1bn.
