Ariston Navigation

10-May-2019

Ariston Navigation controlled 2015 built handy bulk carrier 36K DWT MV Alkyon will be sold subsequent critical legal fight. MV Alkyon is owned by Stallion Eight Shipping.

MV Alkyon has been waiting at an anchorage area near Falmouth, UK. MV Alkyon will be sold on 18 June 2019 through sealed tenders. NatWest Markets (formerly Royal Bank of Scotland) are published as the petitioners by high court order. Greek Stallion Eight Shipping failed in a high court appeal.

Stallion Eight Shipping had disputed MV Alkyon should be released unless the bank presented a cross-undertaking in damages for the loss emerging from the arrest.

In March 2018, NatWest Markets (formerly Royal Bank of Scotland) informed the shipowner that the market value of the MV Alkyon was around $15 million. Therefore, the bank asked extra security for around $1.7 million. Stallion Eight Shipping opposed that appraisal and provided by the bank with higher estimates.

NatWest Markets (formerly Royal Bank of Scotland) seized MV Alkyon in the UK on the basis of the appraisal assigned by shipbrokers. Greek Stallion Eight Shipping has referred to numerous other appraisals by fairly prominent shipbrokers that find MV Alkyon was worth up to $3 million higher at the time. MV Alkyon’s arrest could have been avoided because the loan-to-value shortfall would not have existed at all or would have been extremely lower than the $1.7 million directed by moneylenders.

Greek Stallion Eight Shipping defended on the grounds that the bank’s appraisal was much substantially off-market and not in compliance with the mortgage terms. Stallion Eight Shipping claimed that the bank did not utilize its authorities in good faith or in pursuit of lawful commercial aims. Stallion Eight Shipping challenged that a conceivably catastrophic damage occurred as the unique income-producing ship is out of operation. UK appeal court acknowledged that to uphold Stallion Eight Shipping’s appeal would run counter to the principle that a petitioner in rem may arrest as of right.