Navios Maritime Acquisition will look to sell the portion of the bulkers and boxships that it received in the liquidation of another Navios Group unit.
Navios Europe II, which owns 14 vessels, will be wound up in the second quarter, with the ships going to the three New York-listed Navios companies that own its shares.
The company’s board has formed a special committee of independent and disinterested directors to consider and approve the liquidation, Navios Acquisition said.
"The structure is expected to be liquidated during the second quarter of 2020 and Navios Acquisition expects to receive cash and steel value," the tanker owner added.
"Vessels to be acquired will be held for sale."
Navios Acquisition, a tanker owner, and Navios Maritime Holdings each own 47.5%, while Navios Maritime Partners controls the remaining 5%.
Based on this share, Navios Acquisition could receive up to seven ships.
In November, the group liquidated Navios Europe I, sharing 16 ships between different companies.
It is not clear how the other outfit will use the Navios Europe II vessels, or if Navios Acquisition will sell to another group entity.
Each company will decide on fleet use
A group spokeswoman told TradeWinds: "Similar to Navios Europe I, when Navios Europe II is liquidated, all vessels will go to the respective Navios company. Each company will then decide what they want to do with their proceeds."
Navios Europe II was set up in the Marshall Islands in 2015, and VesselsValue estimates its fleet to be worth $141m.
The company acquired its 14 ships in its first year, partly through loans worth $14m from the three companies. In 2017, this loan amount was doubled.
There were also loans for working capital of up to $43.5m.
Navios Europe II and the lenders have agreed to fully release the liabilities under a $5m junior loan.
At the end of 2019, Navios Holdings was owed $44.3m by Navios Europe II.
The unit owns five sub-panamax boxships and two feeder containerships built between 2007 and 2012. It also has seven supramax, kamsarmax and post-panamax bulkers built in 2010 and 2011.
Navios Acquisition took a $13.9m impairment loss in its first-quarter result relating to money owed it by Navios Europe II.
Fearnley Securities has said that the liquidation could free $50m in liquidity for Navios Acquisition.
