Beijer Capital is Restructured, But Van Nievelt is Liquidated

Another chapter in the traumatic saga of the COB fleet has closed with the liquidation of Van Nievelt Goudriaan (VNG). The Dutch shipping firm, in the throes of a financial crisis since January, had been fighting for survival under creditor protection since then, so its demise comes as no great surprise. Assurances were given by management that the company’s future was secure, but the extent of the financial problems suggested that its “Chapter XI” status could be little more than a stay of execution. The bankruptcy protection was triggered by the removal of credit lines by Bank Paribas and Credit Lyonnais Nederland, which has since taken over the three COB vessels. The first signs of financial distress erupted late last year, when Van Nievelt’s Swedish subsidiary Seahorse Shipping Lines (SSL) collapsed, with debts reported to be in the region of $6m. The SSL business, molded on the operation of two shuttle tankers between Lake Venern and Northern Europe, foundered on high operating and finance costs.

The SSL shuttle vessels are smaller derivatives of the three container/oil/bulk ships (COBs) operated by Van Nievelt between the Continent and Northern Sweden. The controversial yet ingenious concept was devised by naval architect Stig-Ake Svennsson around 1980, and was hailed as a major breakthrough in multi-purpose shipping. The innovative design is based on a system of reversible hatch covers or “baffles” capable accommodating dry cargoes and containers on one voyage, and oil products on the return trip. Despite the fact that VNG secured a contract of affreightment from the Swedish timber group Stora for the southbound trips, the 6,000 dwt vessels proved too costly for the company, already hit hard by the collapse of its Swedish subsidiary.

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