Islamic Republic of Iran Shipping Lines (IRISL) has arrested a Greek-controlled, modern MR2 tanker in Cyprus, as part of a long-standing campaign to convince courts in several jurisdictions that it is the rightful owner of the vessel and two sisterships.
The 50,000-dwt Agios Nikolaos (built 2018) is anchored at Larnaca anchorage, following legal action taken by Grandest Shipping, an IRISL-controlled, Hong Kong-based entity that originally ordered the vessel as a newbuilding at Hyundai Mipo Dockyard.
What happened after the ship's construction is shrouded in controversy.
Grandest claims it merely handed over management of the ship to Greece's Marvin Shipping Services in a bareboat charter.
Marvin and related company Diamond Product Tankers, by contrast, registered the ship in Panama under their direct ownership as Marvin Independence, claiming they acquired it in a $25m resale deal signed a few weeks before delivery.
Grandest claims it never agreed to any such deal and that it never received a dime for the vessel — either in sale proceeds or in charter hire.
Similar disputes have erupted over sisterships Marvin Confidence and Marvin Faith (both built 2018).
In the wake of poor tanker markets, all three Marvin-managed ships were eventually arrested by unpaid bunker suppliers and crews.
Following the arrests, IRISL jumped into action to prevent the ships from going under the hammer. Entities linked to IRISL paid hundreds of thousands of dollars out of their own pocket to meet creditors' demands.
Legal baggage
They succeeded in Rotterdam, where unpaid seafarers dropped their claim on 29 September, cancelling the impending auction of the Marvin Confidence and Marvin Faith.
IRISL was less successful in Piraeus, where the Marvin Independence was auctioned on 1 September.
Despite several competing offers, the Marvin Independence fetched just $17.1m — a price far below market levels. Observers attributed this to the legal baggage it was carrying.
The winning bid was submitted by clients of Greece's Centrofin Management, which had no previous involvement with the ship.
Despite its setback, IRISL asked a Piraeus court to block the vessel, now renamed Agios Nikolaos, from leaving Greek waters. The judges, however, threw out the request.
The ship then moved to Cyprus, where IRISL filed a fresh request to block it. A Cypriot maritime court agreed to detain the vessel as a temporary measure. A main ruling is expected in the next few days.
Lawyers for Rexel Corp, the ship’s new registered owner, told TradeWinds they have "fiercely challenged" the arrest.
Owners "produced evidence that they ... acquired the vessel through a judicial auction that took place in Greece, which provides them with a clean slate over the vessel", they said in an email, adding that they "reserve their rights to claim substantial damages for what they allege to be abusive conduct and wrongful arrest of their vessel".
A maritime lawyer in Athens who declined to be named said the case is characteristic of the lack of an international instrument that would ensure cross-country recognition of judicial ship sales.
Maritime law organisation CMI is working on a so-called Beijing Draft — a nascent international convention to govern such cases.
