Xiaolin Zeng, East Asia correspondent | 28 December 2016
Contrary to claims made by the management of Siva Bulk Ltd, the company is now in the hands of a restructuring company.
IHS Fairplay reported on 25 November that based on a copy of a letter that Siva Bulk Ltd sent to its trade partners, the company had moved from Singapore to Dubai, and that the shares of its parent Siva Shipping Singapore Pte Ltd have been pledged to Standard Chartered Bank (SCB).
The letter had stated that Siva Bulk Ltd’s chartering activities would be handled by Dubai-registered Siva Bulk DMCC and UK-registered Siva Bulk UK Ltd.
However, records from the Accounting and Corporate Regulatory Authority of Singapore show that in October, the shares of Siva Bulk Ltd were all sold to Suave Shipping Pte Ltd, a company wholly owned by Cosimo Borrelli and Jason Kardachi, who are also the principals of restructuring firm Borrelli Walsh.
IHS Fairplay has been told by sources that Siva Bulk Ltd is continuing its business via Siva Bulk DMCC and Siva Bulk UK Ltd. The latter are part of an Indian conglomerate, the Siva group, of which the main company is Siva Industries & Holdings. The group was founded by Chinnakannan Sivasankaran in 1992.
Siva Bulk Ltd specialised in booking Supramax bulkers to ship coal from Indonesia, Australia, and South Africa to India.
Attempts to reach Borrelli Walsh and Siva Bulk DMCC for comment were unsuccessful, but a source with knowledge of the matter told IHS Fairplay that the two men became involved with Siva Bulk after the latter defaulted on its loan to SCB.
The source said, “We are not aware of the existence of Siva Bulk DMCC and Siva Bulk UK Ltd. It appears that these companies were set up by Siva Bulk Ltd’s former principals. Borrelli and Kardachi are working on restructuring Siva Bulk Ltd with a view towards finding a new investor or selling the company. Their involvement arose as a result of Siva Bulk Ltd’s default on a loan. There are no plans to shut the company down. The restructuring team are trying to see how Siva Bulk Ltd can continue as a going concern.”
IHS Maritime & Trade’s Sea-Web data indicates that Siva Bulk Ltd has just one period-chartered ship, the Veenus.
Borrelli Walsh was also involved in the restructuring of Indonesian chemical tanker owner PT Berlian Laju Tanker.
Contact: Xiaolin Zeng