A second product tanker chartered to troubled bunker supplier GP Global has been threatened with arrest for misdelivering cargo.

The case involves a tanker controlled by Torm and is strikingly similar to the case concerning the 50,400-dwt tanker Tenacity (built 2014), on which TradeWinds reported on Tuesday.

Just like the Tenacity, the Torm tanker has been threatened with arrest by French bank Natixis, which financed the cargo on board and holds the bill of lading as security.

But, just like with the Tenacity, the tanker's cargo was allegedly discharged on GP Global's orders to a receiver who was not the bill's rightful holder.

Justice Simon Bryan, of the High Court in London, issued an injunction on 24 August, ordering GP Global to put up the necessary security to the bank by 26 August to prevent the tanker's arrest.

GP Global, previously known as Gulf Petrochem, appears so far not to have provided the security, with parties describing the legal matter as "ongoing".

Back story

Torm, the Danish tanker owner and operator, fixed the 46,000-dwt Torm Hardrada (built 2007) on a voyage charter on 8 May to GP Global, according to court documents.

After the tanker loaded a cargo of jet A-1 fuel at Yanbu in Saudi Arabia on 20 May, a bill of lading was consigned to Natixis and provided for discharge in Rotterdam, Netherlands.

But the claimants say GP Global ordered the tanker on 6 June to proceed to Fujairah in the United Arab Emirates and discharge the cargo to Vitol Bahrain, a party who was not named on the bill of lading.

GP Global issued the shipowner with a letter of indemnity (LOI) on 9 June for discharge of the cargo to Vitol Bahrain at Fujairah, without the need to produce bills.

But, two days later, Natixis contacted Torm and the vessel's registered owner, OCM Singapore Njord Holdings Hardrada, demanding delivery of the cargo or $11.1m in damages.

Natixis also threatened to arrest the vessel, but TradeWinds understands that this has not happened.

GP Global's obligation to indemnify Natixis under the terms of the voyage charter was triggered, the claimants say, because the cargo was discharged without presentation of the original bills and at a port that was not named on the documents.

It is usual business practice for tankers to discharge against a LOI for non-production of original bills of lading or for change of destination, so long as the LOI is issued legally.

Claim

Torm and the shipowning company claim GP Global has failed to accept and fulfil its obligations to provide indemnities under the terms of the voyage charter and the LOI.

The claimants say this is wrongful and in breach of contract, according to the claim form, which was filed on 25 August.

The threatened arrests of the Torm Hardrada and the Tenacity could show that Natixis is becoming increasingly aggressive in pursuing legal action against cargo interests.

This year alone, the bank has had legal run-ins with commodity traders like Hontop Energy, which did not reimburse the lender for an oil cargo, and ZenRock Commodities, a Singapore-based oil trader that used the same cargo of oil to obtain more than one loan from banks.

Latest AIS data shows the Torm Hardrada is laden and underway off the south coast of South Africa.

GP Global has said it is restructuring and, in July, denied it is in financial difficulties.

But the Dubai-based trader and bunker supplier has had one of its owned tankers arrested in India and another chartered-in vessel is said to be on the run and avoiding arrest off Sri Lanka, as TradeWinds has reported.

A spokesperson for GP Global told TradeWinds that the firm is making progress on its restructuring plan "every day" but could not comment on the legal action in London.

"As a matter of respect for the legal process, we will not comment on specific matters before a court, but will state categorically that the company’s CRO [chief restructuring officer] and team are in regular and professional communications with all our valued stakeholders to deliver a transparent, fair and satisfactory restructuring," the spokesperson said.

Torm declined to comment on the ongoing case.