OCTOBER 7, 2013 — Dubai-based tanker operator Gulf Navigation Holdings continues to face problems with its two VLCCs, Gulf Sheba and Gulf Eyadh. As we reported last month, the company is planning to sell both ships in a decision probably precipitated by the arrest in Rotterdam of the Gulf Sheba (left).

The good news for the shipowner is that a court in Rotterdam has ruled that the banks — DNS and BNP Paris — cannot insist on a forced auction of the Gulf Sheba.

The bad news is that the company's other VLCC, Gulf Eyadah, has been arrested in the Bahamas by lenders DNS and DVB bank, despite, says Gulf Navigation, "continuous negotiations."

In the case of the Gulf Sheba, the Rotterdam court ruled that the lenders do not have an enforceable title, but that the ship "may remain arrested until an amicable solution is reached."

Now Gulf Navigation is appointing lawyers to protect its interest and challenge the Bahamas arrest of the Gulf Eyadah.