Greece's Navios Group is to divide up the bulker and boxship fleet of private shipowning company Navios Europe II.
The move will see 14 vessels distributed among the New York-listed group companies that own the private affiliate.
Navios Maritime Holdings and Navios Maritime Acquisition each own 47.5%, while Navios Maritime Partners controls the remaining 5%.
Angeliki Frangou-led Navios Maritime said in an SEC filing: "The structure is expected to be liquidated during the second quarter of 2020."
Navios Europe II was set up in the Marshall Islands in 2015. VesselsValue estimates the vessels as worth $141m.
The company acquired its 14 ships in 2015, partly through loans worth $14m from the three companies. In 2017, this amount was doubled.
There were also loans for working capital of up to $43.5m.
Navios Maritime said that 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 201. It also has seven supramax, kamsarmax and post-panamax bulkers built in 2010 and 2001.
In November, the group liquidated Navios Europe I, sharing 16 ships between different companies.
Liquidity to be boosted
Fearnley Securities said the liquidation would release $50m to tanker owner NNA.
"How the vessels, and effectively, the equity are split remains to be seen," the investment bank added.
The firm said the deal is a welcome liquidity boost to Navios Acquisition, which currently has two VLCCs on subjects at between $150,000 and $190,000 per day.
Fearnley is expecting liquidity to improve to $90m by end of June.
"Repurchasing bonds presently trading at 60 cents would be a powerful exercise, both in terms of addressing the 2021 maturity but also through the equity, given current market cap of circa $100m," the bank added.
It said Navios Acquisition's could retire up to $400m in notes at 60 cents on the dollar, creating about $150m in equity value.
Navios Partners took on 11 boxships and bulkers from Navios Europe I last year, while Navios Acquisition added five product carriers.
Navios Partners said it was owed $48.2m by Navios Europe I, whose fleet was worth an estimated $80m.
