Court Approved Private Sale

If the executing creditor is a mortgagee, it may, up to a week before the scheduled date for the judicial sale, request for permission from the Court for a private sale. The effect of such a private sale is the same as with an auction based judicial sale; the vessel is ‘cleansed’ from all liens and encumbrances.

The Court approved private sale basically allows for sale of the vessel to be orchestrated and thoroughly negotiated, while still ensuring a “cleansed” vessel to such buyer.