Nordea Bank Norge ASA v. The “Kinguk”

This was an application by the Plaintiff mortgagee to realize its mortgage security over two vessels, and its default judgment, through the private sale of the vessels. The application was opposed on the apparent grounds that there had not been a formal appraisal of the vessels. The Court noted that generally it will require a formal appraisal and advertisement before approving a sale of a vessel but held that each case ought to be decided on its own facts and on the basis of the evidence presented. The Court was satisfied that the proposed sale would maximize the proceeds to be made available to creditors and, therefore approved the sale. The Court noted that orders for appraisal and advertisement were never intended to be used a a means to delay a judicial sale so a Defendant might redeem its mortgage.