Navios snaps up 10 vessels from HSH Nordbank debtors

HSH Nordbank and also announced a strategic partnership that could see the Navios Group buy more vessels on similar terms in the future.

The company will assume $173.4m of debt as a subordinated HSH participating loan, with the remaining $127.8m to be paid in cash, which  is in turn funded by senior bank debt and $10m from Navios Maritime Holdings.

Navios has already taken delivery of five of the vessels and will receive the other five before the end of this year. The three MR1 tankers, two LR1 tankers, three sub-panamax and two panamax container ships have an average age of six years.

According to data from vesselsvalue.com, the ships were previously owned by Cyprus-based Interorient, and various German KG funds.

Angeliki Frangou, chairman and ceo, Navios Group stated, "this innovative financing structure provides relief to distressed assets from bankruptcy and places them into Navios's stable ownership, thereby leveraging our economies of scale and superior technical and commercial management. Navios and HSH are committed to their excellent working relationship and look forward to doing similar deals in near future."