Hunter Group, the Norwegian transportation investment company, is currently facing a significant dispute with its unspecified contracting party regarding the chartering of VLCCs (Very Large Crude Carriers). This dispute has reached nearly $68 million due to non-payment of rent, reflecting a decrease in payments in September.
Significant Reduction in Payments
Hunter Group reported that the contracting party paid approximately $12.75 million less than the expected amount for September. This marks the seventh consecutive month of reduced payments, and the total outstanding dispute has now reached about $67.79 million. This figure, excluding accrued interest, has increased from last month’s $55.04 million.
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Legal Actions and Future Trends
The recent dispute represents the largest monthly decrease reported since the onset of this conflict in March. Hunter Group recorded a net rental income of $60.88 million in September 2023, which is more than the $31.69 million in August, but $12.75 million of this income remains unpaid. The contracting party continues to contest its failure to meet its contractual obligations for full rent payment. Hunter Group also believes that this reduction in payments constitutes a breach of contract and has stated that it will continue to pursue its rights.
Earlier this year, after the outstanding balance reached about $28.2 million in June, the company initiated arbitration in London under the auspices of the London Maritime Arbitrators Association. Hunter Group's tanker exposure is primarily focused on two VLCCs with a centralized treatment system that are chartered at fixed rates and are based on floating rate contracts linked to the Baltic Exchange TD3C index.
This dispute arises as Hunter Group prepares for a strategic transition, as the current VLCC charter agreements are set to expire soon. The company has also appointed Erik Mathiesen as the permanent CEO effective October 1, and he has been tasked with overseeing the company's ongoing operations and planning the next phase of development for the time of vessel redelivery.
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