Dubai’s Gulf Navigation reaches settlement over oil tankers

Dubai-based shipping firm Gulf Navigation has announced it has reached a final settlement with DVB Bank, BNP Paribas and DNB Bank relating to two Very Large Crude Carriers (VLCCs) sold in 2014.

The two oil tankers were seized on the orders of the banks in late 2013 in Rotterdam and Bermuda after Gulf Navigation defaulted on loans to purchase the vehicles.

Gulf Sheba and the Gulf Eyadah were later sold to DHT Holdings in Bermuda for $98m in September 2014 but the dispute between Gulf Navigation and the banks continued.

In a statement, the company said today the settlement was part of a process by the company’s new management to clear all historical liabilities and restore its reputations.

“GulfNav is also in negotiations with remaining counter-parties and hopeful of reaching fair settlements soon,” the company said.

“Our primary objective to seek fair and amicable settlements in respect of legacy disputes shall continue until all issues are fully resolved. With this settlement, the transformation of the company’ is taken a new turn. The company is now starting a new chapter which will showcase a stronger and more competitive Marine and shipping company with full commitment to its shareholders, the market and the industry at large,” said Khamis Juma Buamim, board member, managing director and group CEO of GulfNav.

Buamim was appointed in April last year as part of the company’s restructuring efforts. It said at the time it was in the process of negotiating a settlement for its $35m of debt in 2016.

Read: Gulf Navigation appoints new CEO as part of restructuring

Since then, the company has announced partnerships with with Polimar Turkish Holding to grow its fleet and increase its global reach and China’s Wuchang Shipbuilding Industry Group and Qingdao Beihai Shipbuilding Heavy Industry to expand operations in the UAE’s northern emirates.

Read: Dubai’s Gulf Navigation forms joint venture with Polimar Turkish Holding

Last week the company announced a profit of Dhs136.57m for 2016, up nearly 600 per cent on the Dhs20.17m seen the previous year.