Some of the six creditors have told the court they fear an inside deal over the Megacore Philomena, and worry that there may not be enough proceeds to pay their claims unless the sale is advertised in TradeWinds.
In papers filed last week, bunkerer Monjasa objected that TMF Trustee was rushing a sale in a way that prejudices the outcome, suggesting a pre-arranged deal is in the works.
Monjasa is claiming it should be able to recover the cost of fuel it provided to the Megacore Philomena before its arrest. It wants the court to raise the minimum auction price from $17m to $22m.
“The proposed minimum bid is somewhat akin to offering a BMW at a Volkswagen price,” its lawyers wrote, adding that no evidence has been produced that the ship had lost $7m in value since Cass Technava valued it seven months ago.
“The proposal for one broker whose commission is paid as a custodia legis expense, with a low minimum bid, reeks of a pre-arranged private sale by the TMF Trustee through a preferred broker, especially where notice of the sale is for a very short period of time in a local legal newspaper whose audience is primarily disinterested southern California lawyers and judges,” Monjasa’s lawyers argued. “The selling market for this vessel is the entire world.”
Monjasa wants any sale advertised in TradeWinds and the US Journal of Commerce, with a 60-day notice to go out to nine sale-and-purchase firms.
Unsecured lender Novell Investments, which has asked the judge to order 90 to 120 days’ notice, also suspects a pre-arranged private deal.
Novell made an emergency $1.63m loan to shipowner Oxygen Maritime last June to prevent it defaulting on the mortgage, but called in its debt after TMF did so.
“TMF should be required to disclose all prior contact with this broker, to ensure there have been no prior dealings or promises to pre-sell the vessel,” Novell’s lawyer, Panayotis Karydakis, wrote.
