Goldman Sachs sells Oceanco Natita following seizure

alexbaldwin
By alexbaldwin October 30, 2017 13:03

Goldman Sachs sells Oceanco Natita following seizure

Goldman Sachs has sold the yacht it seized from entrepreneur William Kallop for $27.5 million – a 30% discount on its $39.9 million asking price.

On 15 July, Goldman Sachs seized the 66-metre superyacht S/Y Natita after Kallop defaulted on a $32 million loan he borrowed from the bank in 2014, for which it was used as collateral. The loan financed the yacht’s purchase and was set to mature in December 2016, later extended to March 2017. Kallop stopped making payments in November 2016.

Goldman Sachs appointed Burgess as the central agent to sell the yacht. Natita was sold on to a buyer in Malta for $27.5 million – the buyer was represented by KK Superyachts as the purchasers sub-listed broker.

While this is a substantial drop-off from its asking price, the sale does cover most of the cash that Kallop owes to the bank. When he stopped making payments, $28.4 million was left outstanding.

The yacht as built by Oceanco in 2005 as a custom design for Usmanov. She sits at 66 metres and was a collaboration between Oceanco and Kusch yachts. The interior was designed by Alberto Pinto.

The yacht was first sold to Kallop for €59.9 million in 2010, by Russian billionaire Alisher Usmanov.

The yacht was put back on the market in 2010 for an asking price of €59.9 million, which Kallop paid when he bought it.

Wealth Loans

Financing luxury assets like yachts and jets is generally not the safest investment. Yachts especially decrease in value substantially from user to user. One of the biggest reason banks finance a yacht is to keep hold of or get new high wealth individuals and customers. Most of the time they can pay back the asset without any trouble and banks will be happier to extend the loan than seize the asset.

A bank will need to be pushed to seize the yacht. Firstly, it costs a lot to sell a yacht. Whilst the yacht is on the market, you have to  store, maintain and service the yacht.

Natita’s maintenance costs equated to $4492.72 per day according to court documents – $1819.38 of which was due to docking expenses. As of 30 September, the yacht cost Goldman Sachs $437,803.32 to store.

Also, banks want to keep their customers, they will not descend immediately on them when they miss payments. They will generally try to work with a customer to rearrange a deal.

Oceanco Sunray

Natita is not the only Oceanco yacht to be caught up in a financing scandal involving Goldman Sachs.

The 86-metre Oceanco Sunrays might be seized by New York hedge fund Davidson Kempner Capital Management, according to Bloomberg. It looks to secure $200 million that it is owed from a New York legal ruling. A subsidiary of the hedge fund, Barclays, Credit Suisse and Goldman Sachs provided a loan of $450 million to Essar Global Fund, an investment vehicle controlled by Shashikant and Ravikant Ruia, Bloomberg reported.

Davidson Kempner Capital has already seized the Ruia family’s private B737-700 to help secure the loan. However, $175 million is still outstanding.

alexbaldwin
By alexbaldwin October 30, 2017 13:03

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