Greek Shipping News Cuts
Week 28 - 2011


---Posted on 15 July 2011 by Lorraine Eyre
Greek Rich List 2011/12, a publication profiling the wealthiest Greeks in the world, just hit the stands. Although, the people featured in the luxury magazine are powerful and influential, the publication is more than just a list of rich business people.
Savvas Pavlou, publisher of the Greek Rich List and whose design agency in Cyprus puts together the magazine, has been involved with its publication since 2004. His concept of the Greek Rich List, is to not only document entrepreneurial stories, but to inspire young entrepreneurs. He wants to promote Greek heritage
Although, the list above contains people who inherited their fortunes, the Greek Rich List magazine contains a fair number of profiles of people who went from rags to riches under extraordinary circumstances. For more information and to get a copy of Greek Rich List magazine please visit

Shipping magnate John Coustas: Getting Rich in Greece
---The article is available at >

Safe Bulkers to buy up to 10 ships next year
---By Vaishnavi Bala
BANGALORE | Fri Jul 15, 2011 1:19am IST
(Reuters) - Safe Bulkers Inc(SB.N), the fourth-largest U.S.-listed dry bulk carrier by market value, may buy up to 10 vessels next year as the weak market promises cheap bargains, its top executive said.
The company expects the new vessels to start operating by 2013, helping it cash in on the improving market where demand will outpace deliveries leading to better freight markets.
"By this time next year, we will have opportunities to order more ships as prices next year will be lower which will enable us to buy more reasonably prices ships," Chief Executive Polys Hajioannou said in a telephone interview from Athens.
The Greece-based company has a fleet of 16 vessels -- mostly from Japanese shipyards -- which mainly carry thermal and coking coal and it has 11 vessels scheduled to be delivered at various times through 2014.
Hajioannou expects to have a "fire power" of about $320 million to buy vessels, with $160 million of that being raised as debt by offering ships as collateral.
"We hope that the shipyards, mostly Japanese, should deliver competitive prices next year. At the moment they are not delivering competitive prices because the yen is strong now," Hajioannou said.
Since the downturn, the price of a panamax vessel has fallen almost 30 percent to about $33.5 million currently and is expected to drop further to $30 million by the end of the year.
Ship owners went on an ordering spree before the economic turmoil, resulting in an oversupply condition that hit the market hard. This has also forced companies like DryShips Inc (DRYS.O) to diversify into drilling and tanker businesses.
Safe Bulkers, valued at $545.8 million, however, has no such plans.
"We will remain dedicated to bulk shipping," Hajioannou said. "We don't believe that companies should be active on too many fronts, as it becomes difficult to monitor all markets."
The CEO expects a better dry bulk market next year as Japan, a big commodity consumer, will import more iron-ore and coal to help the reconstruction of the quake-hit country.
Commenting on the issue of piracy, Hajioannou, who is also a founding member of the Union of Cyprus Shipowner, said the shipping sector will have to live with the reality of piracy off the Somalia coast.
Piracy attacks have risen by a third in the first half of the year, and become more violent, with pirates using grenade launchers, machine guns and other weapons.
"I don't think there's a political will from the governments to intervene," the football fan said.
(Reporting by Vaishnavi Bala in Bangalore; Editing by Saumyadeb Chakrabarty)

Nautilus Marine Acquisition Corp. Announces Pricing of $48,000,000 Initial Public Offering
---July 15, 2011 08:00 ET
NEW YORK, NY--(Marketwire - Jul 15, 2011) - Nautilus Marine Acquisition Corp. (the "Company") (NASDAQ: NMARU), a newly-organized blank check company formed for the purpose of acquiring or merging with an operating business, today announced the pricing of its initial public offering of 4,800,000 units at a price of $10.00 per unit for gross proceeds of $48,000,000 on July 14, 2011. Each unit issued in the initial public offering consists of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $11.50 per share.
The Company's units will be listed on the NASDAQ Capital Market today under the symbol "NMARU." The Company has granted the underwriters a 45-day option to purchase up to an additional 720,000 units to cover over-allotments, if any.
Maxim Group LLC acted as the sole book-running manager and sole representative for the underwriters. EarlyBirdCapital, Inc. and Chardan Capital Markets, LLC acted as co-managers of the offering. Ellenoff Grossman & Schole LLP acted as counsel to the Company and Lowenstein Sandler P.C. acted as legal counsel to the underwriters.
The offering of these securities will be made only by means of a prospectus. A registration statement relating to the units and the underlying securities has been declared effective by the Securities and Exchange Commission on July 14, 2011.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the final prospectus relating to the offering, when available, may be obtained for free by visiting the U.S. Securities and Exchange Commission website at Alternatively, copies of the prospectus related to this offering may be obtained from Maxim Group LLC, 405 Lexington Ave, New York, NY 10174, (800) 724-0761.

Target Marine looks to Hong Kong listing
---Target Marine, a Greek shipping firm, is looking to raise US$200-300 million via an initial public offering on the Hong Kong Stock Exchange in the second half of 2011, the Wall Street Journal reported. The tanker and bulk carrier will be the first Greek firm to list on the Hong Kong bourse, and follows a string of European listings in recent months, including Prada (1913.HK) and Glencore (GLEN.LSE, 0805.HK). The Hong Kong exchange has drawn increasing interest in the past year from foreign firms looking to tap the mainland China market, particularly in the mining, luxury goods and transportation sectors. Other foreign IPOs scheduled for the second half of the year include South Korea's Basic House (084870.SK), Japan's Baroque, and Canada's Sunshine Oilsands.

Shell takes Angelicoussis VLGC for at least $700,000 per month
---The Angelicoussis group of Greece has locked one of its two very large gas carriers (VLGCs) into a charter with Shell for up to two years.
The oil major is understood to have agreed to pay a market-related rate for the 83,000-cbm Maran Gas Vergina (built 2008) with the minimum rate possibly $700,000 per month. The deal is said to be for one year with an option for a second.
Angelicoussis originally ordered four sisterships at Daewoo Shipbuilding & Marine Engineering in South Korea at $89m each. In 2006, Oslo-based BW Gas bought a 50% stake in all four vessels and the companies discussed closer co-operation in the LPG sector.
The venture broke up in 2008 over what is believed to have been a response to a European Union (EU) probe into the conduct of shipping pools. The parties ended up owning two ships each.
Sources say Maran Gas originally moved into LPG with a view to get long-term contracts in Qatar but that never happened.
Elsewhere, the 35,000-cbm Sanko Innovator (built 2008) is said to have been fixed by PMI for six months at around $725,000 per month.
Brokers say the 18,100-cbm Prins Maurits (built 1997) has been extended by Yara for another six months at a rate understood to be $600,000 per month.
In another LPG deal, NGL has fixed the 3,500-cbm Sea Sawasdee (built 1995) for three years from Seamanship Co of Thailand. The rate is said to be $190,000 per month and brokers say the deal includes an option for two more years.
The 2,600-cbm Navigas 1 (built 1982) is said to have been sold for demolition in Turkey at an undisclosed price.
By Trond Lillestolen Oslo
Published: 22:01 GMT, 14 Jul 11 | updated: 19:39 GMT, 13 Jul 11

HSH Nordbank battles Omega
---LENDER HSH Nordbank believes the product tanker fleet of Omega Navigation Enterprises should be liquidated, court documents reveal.
NASDAQ-listed ONE filed for Chapter 11 bankruptcy protection on 8 July after failing to pay senior lender HSH $242.7M in matured debt. In newly filed documents reviewed by Fairplay, ONE detailed two suits it has filed against HSH in Greece seeking $570M in damages.

---Wednesday 13 July 2011, 12:22 by David Osler
Top shipping law firms, Greek affiliate of Ernst & Young and two class societies are also owed money
V.SHIPS, top shipping law firms, the Greek affiliate of Ernst & Young and two classification societies are among the leading unsecured creditors of Omega Navigation, the product tanker owner that is seeking Chapter 11 bankruptcy protection in the US.
According to paperwork lodged in the Houston bankruptcy court, V.Ships topped the list of the 30 largest unsecured creditors, with $276,986 outstanding. Second was Ernst & Young (Hellas), which is owed $248,675. Ulysses Systems, a supplier of maritime software, is owed $244,660.
Other creditors include Tuzla Shipyard, Capital Link, Cosco Shanghai Shipyard, Jotun Paints, Maersk Broker, Intertanko and Inchcape Shipping Services.
On June 30 last year the full amount of the senior facility was outstanding along with $38.3m of the junior loan. Total debt at that stage was said to be $359m.

---Last Friday, after the markets closed, Omega Navigation Enterprises Inc. announced that it along with certain subsidiaries had filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. The filing seeks protection for the publicly listed company and all of its 100% owned vessel owning companies.
The company attributes the filing to the unwillingness of the senior lenders, led by HSH Nordbank, to work with the company on an out of court re-structuring of its obligations. As a consequence of the lenders intransigence, the company has commenced litigation against the senior lenders in Athens. Market sources suggest that the senior loan is well covered by collateral, whereas the subordinated loans provided by BTMU and NIBC are under water. The shareholders, of course, have likely been wiped out by this action.
As is the case with Chapter 11, the company will continue to operate in the ordinary course of business and to that end the Court has granted all the interim relief requested.
The question is whether the markets will return before time runs out?
Omega's principal legal advisor for the restructuring process and Chapter 11 proceedings is Bracewell and Giuliani LLP. The Company's financial advisor is Jefferies & Company, Inc.
Source: Marine Money Freshly Minted, Thursday, July 14, 2011, Page 4

Navios adds two product tankers
---(July 14 2011)
Navios Maritime Acquisition Corp has purchased two 50,000 dwt MR2 product tankers built in 2009 for $84.8 mill.
The former Geden-owned vessels are employed under three year charter contracts at rates of $22,490 net per day for the first year and $21,503 net per day for the remaining period.
They are expected to be delivered to Navios in July 2011.
Both the tankers will generate approximately $11.2 mill of EBITDA annually and $34.2 mill of aggregate EBITDA assuming operating expense approximates to the current operating costs and 360 revenue days are gained per year.
Navios Acquisition said it expected to finance the acquisition with cash on its balance sheet plus $55.1 mill of debt with a margin of 325 bps and an amortisation profile of about 11 years.
Other terms and conditions are in line with its existing credit facilities.
In addition, Navios Acquisition said that the timecharter for the 'Nave Cosmos' has been extended at $11,213 net per day with profit sharing through February 2012.
Also, the current charter for the 'Nave Polaris' was extended for six months at $11,213 net per day with profit sharing through January 2012.
The company has contracted 98% and 63.3% of its available days on a charter-out basis for 2011 and 2012, respectively.

Cruise re-think as passenger ship bodies bury their differences
---With the government mulling significant 'more market-friendly amendments' to the much vaulted bill liberalising the Greek cruise sector, the tough economic conditions facing the country have encouraged the two unions representing passenger ship companies to end years of bickering and unite their voices and negotiating powers as they battle to stave-off collapse.
Though the Union of Marine Enterprises (EEN) and the Association of Greek Passenger Shipping Companies (SEEN) have not seen eye-to-eye in recent years as they have struggled in difficult markets, the unification process is expected to get underway immediately. The executive boards of both bodies said individually July 11, they see "a single representation" as the best way forward.
At the sametime it is reported alternate Development, Competitiveness and Shipping minister, Haris Paboukis is having a re-think of the legal framework easing cabotage in the cruise sector, especially with regard to non-European Union flagged ships. The move comes after intense industry criticism of the legislation introduced 12 months ago, which sought to make Greek ports attractive for homeporting of cruise ships. The three-year contract foreign companies would have to sign with the Greek state caused a particularly strong reaction.
Many cruise professionals have seen the legislation "as an experiment only" and instead of strengthening Piraeus as a homeport they say it acts as a disincentive at a time when the Greek state looks to increase revenues from cruising by Euro 1bn annually. At last month's Posidonia Sea Tourism Forum in Athens, top executives from MSC Cruises, Costa Crociere, Louis Group, Norwegian Cruise Line, Royal Caribbean Cruises and HAL, all to varying degrees warned the Athens government that the legislation contained too many loopholes, to really encourage companies to homeport large modern ships in Greece. They also expressed concerns about Greece's ability to service thousands of cruise tourists efficiently and safely.
Regarding the sea tourism sector's united voice, EEN, which represents some 4,000 vessels engaged in the passenger ship and tourism sectors, said its governing council "unanimously supports joint meetings of representatives of SEEN and EEN aimed to combine the two associations". SEEN, which represents passenger ship companies operating cruise ships and ferries in the main domestic routes and internationally, said its board decided, "in view of the critical situation the whole passenger shipping sector is currently experiencing and because of the need to have a single representation of the shipping industry, we should explore together with EEN the possible union of the two shipowners' associations".
EEN noted that "several times we have stressed the ferry sector is at a critical point with a real probability of collapse in the near future if steady and decisive steps towards its support and rectification are not taken immediately". It said: "A prerequisite for this is the existence of a uniform and stable administrative body able to solve the industry's problems in a direct and speedy way. It is high time the government's obsession with experiments in shipping stopped and gave way to the re-establishment of the Merchant Marine ministry, as it had been developed over many years."

Insight: Greek shipyards need building up
In addition, even if private shipbuilders were willing to set up shop in Greece, bureaucracy still remains complicated in comparison with other countries.
And, significantly, debt-stricken Greece is the last place many private companies would like to invest at present.
Source: Fairplay - Technical 14 Jul 2011

---Chengxi Shipyards Co Ltd and its main agent in Greece for the last 15 years Marine Plus, organized a reception dinner in honour o Mr Ma Shi Xiong, the new president of Chengxi Shipyards Co Ltd (subsidiary of CSSC Group of China) at the Yacht Club of Piraeus. The Ambassador of China in Greece Mr Luo Linguan honoured this event with its presence. The participants had the opportunity to be informed about the activities of Chengxi Shipyards. Chengxi shipyard Co. Ltd. is one of the largest shiprepair and newbuilding enterprises under CSSC. The company succeeds to the production and business of previous Chengxi Shipyard and specializes in shiprepair and newbuilding, steel construction as well as offshore engineering, lifting gears and mechanical-electric equipments repair and manufacture.
Located in Jiangyin city, Jiangsu province, the company covers an area of 980,000 square meters, with 2,152 meters river front and 1,630 meters outfitting quay. The company has 5 floating docks, in 170,000DWT, 120,000DWT, 100,000DWT, 80,000DWT, and 25,000DWT respectively and one slipway in 70,000DWT. And also, the company is rich in facilities and equipments of shiprepair, newbuilding and steel construction. The company is proud of the strong technical capability and the plenty of ship conversion experience as well as the annual production capacity of 240 vessels (up to 300,000DWT) for shiprepair and conversion, 10 vessels (up to 50,000DWT) for newbuilding and 50,000-ton steel for steel construction.
With the high quality, credible and top-ranking service concept, the company erects her own brand, and also, through the constant strengthening and promotion of the internal management, the company has been accredited and certified by LRS & CCS with ISO9001:2000 Quality Management Certificate, ISO14001 Environmental Management Certificate and ISO18001 Occupational Health and Safety Management Certificate.