In 2018, as part of the X-Ray shipping portfolio, SC Lowy purchased the exposure versus FDA (an Italian shipping company) secured by one Platform Support Vessel (PSV) cold stacked in Sutherland, UK. However, the Company had additional four PSVs secured by debt owned by other two Italian banks.
SC Lowy’s objective was to consolidate the Company’s debt, cut a deal with the shareholders and find a buyer for its vessels.
SC Lowy consolidated the debt by purchasing the credit lines that financed the vessels at a discount to face value. SC Lowy accomplished this by working with the shareholder of FDA, international shipbrokers specialized in PSVs and three different banks at the same time.
SC Lowy sold the five platform supply vessels to a buyer in the Caspian Sea. This ensured that the sponsor was able to avoid bankruptcy along with saving the banks from having to write off to zero their debt. This transaction further demonstrates SC Lowy’s ability to dig deep and discover the true value of an asset in illiquid shipping markets and be a partner for companies/sponsors and banks.