A five-tanker acquisition announced by rapidly growing Castor Maritime on Friday is said to have come from the fleet of Greek owner Eletson Corp, which has been in protracted discussions with bondholders over a resolution of its debt.

Two tanker market sources told TradeWinds that the vessels going to Castor in the $49.5m deal are Eletson's 106,000-dwt Megalonissos and Alonissos (both built 2004), Agathonissos (built 2002), and the 37,600-dwt Sikinos and Skyros (both built 2006).

The sources said Eletson is also selling the 106,000-dwt Makronissos (built 2002) to an unidentified second buyer.

"I have to believe that winding down this bond is a relief for both the bondholders and Eletson," one tanker market source familiar with the transaction said.

The tankers sold are the last vessels that had secured Eletson's bond debt, he said.

Castor announced its latest acquisitions without identifying either the vessels or sellers.

The Petros Panagiotidis-led owner said it was taking two 2006-built MR1 carriers, two aframax LR1 tankers built in 2004 and a 2002-built aframax LR2.

The acquisitions bring Castor’s tanker fleet to eight. That is in addition to 15 bulkers — the sector in which the company originally focused.

For Eletson, the sales represent the latest step in a long-running series of financial struggles that have continued through the current market trough for tanker rates.

TradeWinds reported on 28 April that Eletson was rumoured to be selling at least four tankers to buyers who were then not identified. The tankers mentioned included those now known to be going to Castor.

In the summer of 2018, Eletson carried out a debt restructuring that saw it replace $300m-worth of mortgage notes with new paper offering bondholders a whopping 12% coupon.

In January 2019, the company announced it was involved in fresh talks with the noteholders. There has been no public update on the state or outcome of those talks.

The sales would bring Eletson's remaining tanker fleet to 11, including five vessels recently arrested by Chinese leasing companies.

However, it is believed that Eletson has continued to technically and commercially manage the six-ship bond fleet through the negotiations with holders.

Since Castor has only recently turned to tankers, one tanker source suggested that it may continue to keep management functions with Eletson for a time.

Castor said it expected to take delivery of the five tankers within the current quarter.