The “Posidon” – High Court (Belinda Ang Saw Ean J) [2017] SGHC 138 – 7 June 2017

Admiralty practice – Priorities – Whether mortgagee or necessaries supplier should have priority on proceeds of sale of vessel – Whether special circumstances existed to disturb established order of priorities

On 16 February 2012, the plaintiff, Piraeus Bank SA (the bank), entered into a loan facility agreement with the registered owners of the vessel Posidon and another vessel (the borrowers). The facility was secured by way of second preferred Liberian Ship Mortgages over the two vessels (the mortgages).