Fake mortgage detained vessel losing millions

Libya-based state-owned General National Maritime Transport Company (GNMTC) denies it owes a US$9.23m mortgage on crude oil carrier Badr to Bulgarian-based oil and gas contractor Bulgargeomin but despite providing evidence the mortgage is falsified the vessel has yet to be released.

GNMTC’s insurance and risk manager Mohamed Elahresh said the ongoing battle has caused “a serious problem with a Russian charter company which had a tie-in charter with Solal Shipping and hired the vessel for one year” but was not able to use it.

Activity restrictions

“The commercial losses for the revenue itself is over US$20,000 dollars per day without counter claims which we will receive from the charter at any time because we are in breach of the charter party.”

He added that it can’t take its other vessels to Bulgaria which will make it lose a lot of money on business in the Black Sea between Russia and Bulgaria.

“Now we’re asking the charter not to go in that direction which causes a lot of issues and the charter will eventually just go and we will remain with our vessels unemployed,” Mr Elahresh stressed.

“Forged” documents

According to a letter sent in May to The Joint War Committee, Lloyd’s Market Association from the Libyan Ports & Maritime Transport Authority, asking it to address what it says is a lack of adherence to the law by the Bulgarian Government, a fraudulent mortgage document was filed for Badr in September 2017.

The Greek notary with whom the mortgage was allegedly executed with wrote to the Port Authorities of Tripoli-Libya on 4 January, in a letter seen by Port Strategy, confirming the mortgage documents were “false” and forged”, after filing a criminal lawsuit in Athens. In the same month, court proceedings against former state-owned Bulgargeomin resulted in GNMTC winning an “unappelable” Supreme Court ruling, said Mr Elahresh.

However, he said this was followed by an enforcement order by the Bulgarian Maritime Administration and the declaration that the vessel could be rearrested.

April auction attempt

An auction of the vessel was attempted in April and stopped when GNMTC successfully appealed the enforcement order but Mr Elahresh said the company was forced to file a criminal complaint when the auction officer carried on with proceedings due to what GNMTC was told was a lack of response from Bulgargeomin. An investigation has launched by the Bulgarian Public Prosecutor.

The Bulgarian Maritime Administration has not responded to Port Strategy’s request for comment.