UPDATE, JUNE 28, 2018: The judicial auction of Indian Empress reportedly concluded successfully today. She sold for nearly €44 million (click the link to read the full details).
Read on for our original article.
With creditors claiming thousands of dollars in unpaid bills, a Maltese court has ordered the auction of Indian Empress. What’s more, the owner has agreed to it. The auction date: June 28.
The 312-foot (95-meter) Indian Empress belongs to Vijay Mallya, an Indian entrepreneur with business interests in alcohol and auto racing. Since buying the yacht in 2006, Mallya has used her himself as well as offered her for charter. Over the past several months, though, the self-proclaimed “King of the Good Times” stands accused of serious financial wrongdoings. At least a dozen parties say he has failed to pay for services provided to Indian Empress.
In February, for example, Indian Empress was arrested in Malta over unpaid crew wages. The global trade union Nautilus International secured the maritime lien on behalf of the 40-person crew. The union argued that Mallya abandoned the megayacht in Malta in September 2017, owing about $1 million in wages. Then, in April, a civil court in Malta upheld claims by Melita Power Diesel, a marine-diesel repair company. It arrested her, too, over an unpaid bill exceeding $758,000. Further in April, a Maltese civil court ruled Mallya owed about $83,300 to two yacht agents. The agents are Agence Maritime Tropezienne and Luise Associates Riviera & Co.
According to multiple media reports, mounting unpaid bills led creditors to pursue additional legal action. At least one requested a judicial auction. Therefore, in mid-May, a judge set an auction of Indian Empress for May 21. We confirmed this with Ann Fenech, managing partner at Fenech & Fenech Advocates, which represents claimants. She additionally confirmed that the court suspended that auction last week. Instead, Fenech explains, the judge requested all parties appear before him on May 28. Interestingly, Mallya’s representatives supported the suspension, in favor of giving interested buyers time to learn more.
“After hearing representations from the execution creditor, the Indian Empress, and the other creditors, the judge appointed June 28th as the date on which the Judicial Sale by Auction of the Indian Empress will take place,” Fenech explains. She adds that additional creditors can file with the court prior to the auction date.
We are awaiting confirmation of the execution creditor, the company which pressed for and received this auction proceeding.
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