Primorsk Internatioal Shipping Files for Chapter 11 Bankruptcy

by San Antonio Attorney

Primorsk International Shipping, an ice class tanker operator and shipping management established as a Soviet shipping company, recently filed for Chapter 11 bankruptcy protection through a court in New York.

Primorsk, which has satellite branches in Nakhodkha, specializes in the transportation of tanks in arctic condtions and is a frequent contractor with major oil companies and other forms that provide crude/product transport in high latitude.

Despite its huge profitability with its regular clientele, the company has been in talks of debt restructuring for almost two years.  The tanker operator has record of making huge loans ten years ago to fulfill the objective of expanding the tanker fleet.  In an effort to pay off debt, the company has to sell its old ships constantly.  Creditors are now urging the company to liquidate the remaining fleet.

During its flourishing period, the firm had a fleet of more than 40 ships and was a diversified international company that employed almost 3,000 people.  It also had multiple subsidiaries in both maritime and non-maritime fields.  The largest source of income of the firm came from the fields of Sakhalin Island and became involved in export/import along with international liquid bulk shipping.

There two companies associated with Primorsk, which work hand in hand as a training branch and a ship management agency.  However, these companies are a separate entity and are not associated with the filing, according to the Wall Street Journal.

In 2014, the firm sold their Suezmax crude tanker to Bumi Armada, a Malaysian FPSO operator for conversion purposes.

Primorsk exited a partnership with M.C. Reiber last 2015 for the construction and proprietorship an icebreaker tug on long term charter tankers at the Sakhalin Terminal in the Far East Region of Russia.  The company sold 50% of its stocks to an investment firm.

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