Buyers keen to get their hands of one of Xihe Holding's dwindling stock of VLCCs may soon get the opportunity to buy one at auction in Singapore.
The 318,600-dwt crude carrier Wu Yi San (built 2012) has been arrested in the city-state by Credit Agricole Asia Shipfinance, one of Xihe's larger creditors.
The tanker, which sat out the collapse of Xihe and affiliated operator Ocean Tankers at a remote anchorage in Indonesia, was moved to Singapore on 23 August to facilitate the arrest, legal sources said.
Xihe's ships are under court protection during its liquidation process, although the liquidators have allowed some arrests by financial institutions to expedite their sale via auction.
The Wu Yi San joins four smaller Xihe-owned product tankers under arrest in Singapore.
The 12,000-dwt product tankers Ocean Porpoise and Ocean Jack (both built 2018), together with the identical but slightly older Ocean Goby and Ocean Manta (both built 2017), were all arrested by Bank of America’s Singapore branch.
Tanker brokers suggested they could be put up for auction by the end of the year as it usually takes three months from the arrest date for creditors to secure an auction under Singapore's judicial process.
Xihe’s VLCCs have proven especially popular with the bigger names in tankers. The last VLCC sale in August saw the 318,400-dwt Chang Bai San (built 2012) sold for $41.5m, with the buyer reported as Cyprus Maritime Co.
The Wu Yi San is one of three VLCCs still remaining in the fleet.