The Gibraltar Supreme Court has ordered the sale of Axioma at auction. It stems from the guarantor of a loan for the yacht being unable to pay under the Ukraine sanctions list. The yacht is remaining in port in Gibraltar until the sale concludes.
The court order follows a few months of legal proceedings. On March 22, Gibraltar authorities arrested Axioma, following J.P. Morgan filing an admiralty claim. The claim is against Pyrene Investments, a British Virgin Islands company that’s the registered owner of the popular 236-foot (72-meter) charter yacht. According to court documents, the bank provided Pyrene Investments with a mortgage loan of €20.5 million in December 2021. Additionally, Russian steel magnate Dmitry Pumpyansky, reportedly her ultimate beneficial owner, signed a guarantee for the loan. However, the European Union and the United Kingdom placed him on its sanctions list, on March 10 and 15, respectively. Once that occurred, his assets froze.
Under Gibraltar law, UK sanctions automatically apply. J.P. Morgan’s lawyers argued that landing on the sanctions list equated breaching the loan agreement. Furthermore, the bank’s lawyers indicated, on March 4, shares of Pyrene Investments’ parent company transferred to another individual. This, they argued, was a further breach of the loan agreement. Therefore, the bank sought a court declaration stating the mortgage loan, plus interest and fees, was due. It requested sale of Axioma at auction, too, to recoup the funds. The Gibraltar Supreme Court ruled in favor of the bank this month.
The Admiralty Marshal for the Supreme Court is handling the sale. According to Nigel Hollyer, broker to the Admiralty Marshal, no date is set yet. However, once one is, a dedicated website will include the conditions of sale, along with current photos and details of the yacht. Furthermore, the website will permit interested buyers with the ability to submit an online bid. Of course, buyers additionally will be able to see the yacht in person in Gibraltar by appointment.
Richard Bitterman
Can I be put on a mailing list for information on Axioma?
Diane M. Byrne
We’ll post an update when the bid package is available.
Max
How do we get the info about the sale I am from usa
Diane M. Byrne
We’re following developments and will update accordingly.