Singapore’s High Court has approved an auction of a bunker tanker arrested last November.
The Sheriff of Singapore will sell the 4,000-dwt UE Star (built 2014) via sealed bids due on 31 January.
The ship was operated by Universal Energy, which was one of Singapore’s largest bunker suppliers until it was barred from trading by the Maritime & Port Authority of Singapore (MPA).
The MPA refused to renew Universal's licence when it expired at the end of August, saying the company had accumulated demerit points for delivering severely aerated bunkers, otherwise known as the cappuccino effect.
Universal subsequently filed for liquidation. Shortly thereafter, local outfit Singapura Finance filed a SGD 5.9m ($4.4m) mortgage claim against the ship, saying registered owner UE Tankers had breached its mortgage covenants.
Another tanker operated by Universal Energy, the 7,000-dwt UE Sapphire (built 2012), was registered directly to the company and so not arrested, as its sale would be part of the court-appointed liquidation.
Singapore-based brokers who deal in bunker tankers suggest the UE Star will be an easy sell as the bunker business is thriving and such vessels are in high demand.
VesselsValue estimates the UE Star has a market value of $9.2m. A recent survey found it is in good condition and all certificates onboard are still valid.
