W.D. Fairway

KEITH SEVILLE
5th March 2009, 18:53
It is six months since we corresponded about this vessel.
Can one of our dredger specialists give me the latest update on her please.
Is she still in Thailand being repaired, if affirmative any information on when
she is likely to come back into service??

Regards
Keith

Gorhol
6th March 2009, 00:15
Not had much time to search for info Keith, however I have found this bit regarding a court case that seems to be related to the vessel.

http://www.tradewinds.no/multimedia/archive/00106/Dornoch_v_Westminst_106085a.pdf

Regards
Gor

Degzie
6th March 2009, 21:23
This is report on the link that Gorhol is interesting reading it sounds as RBKW are trying to get the Fairway back in the fleet on the cheap. I am baffled by the law talk but maybe she will be back in service before long

KEITH SEVILLE
7th March 2009, 10:46
Thanks Gorhol and Degzie for your responses.
I must say Degzie, that it also seems to me that the W.D.Fairway will be returning to the fleet at some future date.

Regards
Keith

Seakees
1st April 2009, 06:09
Ship is still laid up. No decision sofar to repair or scrap.




It is six months since we corresponded about this vessel.
Can one of our dredger specialists give me the latest update on her please.
Is she still in Thailand being repaired, if affirmative any information on when
she is likely to come back into service??

Regards
Keith

KEITH SEVILLE
1st April 2009, 07:50
Thanks Seakees for the info.

Regards
keith

Degzie
26th June 2009, 11:16
found some info on the on going court case makes intresting reading with a lot of legal stuff.
http://www.tradewinds.no/multimedia/archive/00108/Dornoch_v_Westminst_108072a.pdf
Cheers
Degzie

Degzie
26th June 2009, 11:20
my limited understanding of the document is that a decsion of who owns the hull etc has to be decided under Thai law. it appears at present under english law it belongs to westminster dredging nigera, unless anyone knows different.
degzie

Degzie
26th June 2009, 12:30
London underwriters and the Royal Boskalis Westminster group have been back in court trying to resolve issues relating to the valuable wreck of the mega dredger WD Fairway.
Although there is a massive body of law about hull claims and constructive total losses London high court judge, Justice Tomlinson, commented that the parties to the litigation had “contrived to produce a contingency hitherto unprecedented as far as is known.”
The 60,000-dwt trailer hopper dredger WD Fairway (built 1997) was struck amidships by the 9,200-teu containership MSC Joana (built 2006) while operating off the Chinese port of Tianjin in March 2007.

It is agreed that underwriters having paid a hull and salvage claim on the vessel insured for EUR 150m ($200m) are entitled to the residual open market value of the wreck.
But Boskalis puts the value of the wreck at EUR 25m while the underwriters suggest it could be worth EUR 75m.
The shipowner was however unwilling to put the wreck up for open market sale to establish the value but instead attempted to sell the wreck to a Nigerian subsidiary for just EUR 1,000.
The dispute over the most costly ever navigational claim came before Justice Tomlinson for various preliminary issues to be resolved.
The judge ruled that the underwriters did not acquire an equitable lien on the WD Fairway as a result of paying a CTL and did not take over the vessel by paying a salvage/wreck removal claim.
But Justice Tomlinson ruled the underwriters had acquired a beneficial interest under a trust and as the wreck was lying in a Thai dockyard Thai law should apply.
This was taken from a report on Tradewinds nu. A shorter virsion of the court ruling

KEITH SEVILLE
26th June 2009, 13:43
Degzie

Thanks for all your updates on W.D.FAIRWAY which I have read, the wrangling goes on !
Will be glad when they get to a final conclusion and we know what is going to happen to her.

Regards
Keith

Degzie
20th July 2009, 14:08
Hi
Found a newspaper clip re WD Fairway also a link to the final court judgement over who owns her makes intresting reading

Cheers degzie

http://www.tradewinds.no/multimedia/archive/00110/Dornoch_v_Westminst_110280a.pdf

Sham sale voided
Insurers have emerged victorious in a major battle with Royal Boskalis Westminster over the near fraudulent sale of a valuable wrecked dredger to a Nigerian subsidiary.
The Dutch group secretly sold the wreck of the 60,000-dwt WD Fairway (built 1997) the world’s biggest dredger estimated to be worth at least EUR 25m ($35m) and maybe as much as EUR 75m ($106m) even in its damaged state to wholly owned subsidiary, Nigerian Westminster Dredging, for just EUR 1,000 ($1,400).
The intention was to frustrate underwriters’ rights to the wreck gained as a result of a more than $150m ($212m) settlement of a constructive total loss claim.
London high court judge, Justice Tomlinson, found that the sale of the WD Fairway fell within provisions relating to transactions defrauding creditors under Section 423 of the Insolvency Act of 1986 although this case did not involve insolvency.
The judge ordered that Boskalis Westminster transfer the WD Fairway to the underwriters so they can sell the wreck.
The intra-group sale was carried out clandestinely with the underwriters the plain victims according to the judge.
“In my view the facts fall squarely within the provisions of section 423. The transaction was at an undervalue. The consideration given was trifling and at best symbolic – EUR 1,000 in respect of a vessel for which Boskalis had only recently, in effect, offered EUR 25 million,” said Justice Tomlinson.
“A purpose of Boskalis, and for the avoidance of doubt of Westminster International, in entering into the sale was to prejudice the interests of underwriters in relation to their claim to be entitled to assume ownership and possession of the vessel and to sell her,” the judged added.
The trailer hopper dredger WD Fairway was struck amidships by the 9,200-teu containership MSC Joanna (built 2006) while operating off the Chinese port of Tianjin in March 2007.
The incident is the most costly navigational claim ever and has led to a major battle between the Boskalis Westminster group and underwriters led by the XL Capital vehicle, Dornoch, which provides the capital behind Lloyd’s syndicate 1209 along with a string of other insurers including Royal and SunAlliance as well as Aspen Insurance.
Boskalis estimated the value of the wreck at EUR 25m but was unwilling to put the WD Fairway up for open market sale to establish the true value fearing it would be bought by a competitor. It was instead “sold” to a Nigerian subsidiary for a nominal sum.
The judge found Boskalis insurance manager Oscar Bus, to be expert in insurance matters and related legal issues and “unswerving and resolute” in the defence of his employers interest.
He had handled two previous Boskalis total losses and was determined underwriters would pay the full CTL claim before the question of an agreed value for the wreck was resolved.
And the judge was clear that Bus would have known that by paying the full CTL claim underwriters gained an unfettered right to take possession of the vessel.
Geoff Webster of US dredging specialist Venar Marine inspected the WD Fairway and found it in better condition than could be expected and against a background of a record number of major dredging projects underway around the world found the WD Fairway was a very desirable and valuable vessel even in its present condition.
He provisionally valued the vessel at EUR 75m although there is no secondhand market for mega or even jumbo dredgers as the four major dredging companies build and operate vessels for their full life of 25 or even 40 years. Webster recommended the vessel be put up for sale through international tender.
But Boskalis had privately sought a valuation from top Dutch dredge broker, Boogaard Sliedrecht, who put the value at EUR 25m to EUR 27m.
Boskalis offered EUR 25m for the wreck but this was rejected as far too low by underwriters and Clarksons who were by then involved as the brokers who would potentially be involved in the sale.
Without a chance to inspect the WD Fairway the rival Van Oord dredging group gave a non binding indicative offer for the vessel of EUR 62m although this was withdrawn following an inspection.
“The underwriters are plainly victims of the transaction. If it stands it prevents them from exercising their contractual right to assume ownership and to sell the vessel on the open market so as to maximise recovery. The underwriters have been deprived of the chance of achieving a higher price than that indicated by the valuation which Boskalis says is a proper one. That conclusion is independent of but is reinforced by my finding that the vessel cannot reliably be valued so that no valuation so far put forward can be regarded as a proper or appropriate valuation,” declared Justice Tomlinson.
The case is being fought in the English courts but applying the principles of Thai law, as the wreck is lying in a Thai dockyard, although Thailand has no law specific to marine insurance.
Boskalis is pursuing a separate action against the underwriters alleging there was unreasonable conduct in the delayed acceptance that the WD Fairway was a CTL.

KEITH SEVILLE
20th July 2009, 15:41
Hi Degzie.

J

KEITH SEVILLE
20th July 2009, 15:46
Hi Degzie.

Just been reading this report on W.D.Fairway which makes very interesting reading. It seems Bos Kalis would rather sell their vessel to a subiduary company and it seems that the vessel may be in a better condition than expected. I expect the wrangling will carry on for some time yet!!
Why cant they just put her on the open market and get a good offer??
It seems to me she will be resold as a going concern and scrapping looking
rather unlikely.

Regards
Keith