Pillarstone's acquisition of $350m of distressed Italian shipping debt and the cancellation of the fleet auction of bankrupt RBD Armatori are provoking a backlash in shipowning circles.
Italian shipowning and financial sources believe banks have caved in by selling Italian shipping debt to private equity players on the basis of unrealistic expectations.
A court auction of RBD’s fleet of 13 tankers and bulkers, as well as real estate interests, was scheduled for 22 February, but it was cancelled after private equity interests linked to the Reuben Brothers were said to have stepped in with an estimated $300m offer for ships and real estate.
