1MDB and Malaysian government apply for quick sale of superyacht Equanimity


Malaysia's Prime Minister Mahathir Mohamad (centre) and Defence Minister Mohammad Sabu (third from left) visiting superyacht Equanimity on Aug 11, 2018.
PHOTO: EPA-EFE

KUALA LUMPUR (THE STAR/ASIA NEWS NETWORK) - State fund 1MDB and the Malaysian government have applied to court for the sale of superyacht Equanimity to be sped up to avoid it further declining in value.

In an application filed by 1MDB, its subsidiaries 1MDB Energy Holdings Ltd and 1MDB Global Investment Ltd, and the Malaysian government on Thursday (Aug 23) against ship owner Equanimity of Cayman Islands, the four plaintiffs asked for the sale of the vessel, bunkers, fuel, lubricants and other consumables on board to be conducted through an open tender or private treaty by the sheriff of the Admiralty Court in Kuala Lumpur.

According to the court filings, the ship was subject to physical deterioration, as it was exposed to the elements of sea and weather, and that it was in the interest of all parties that the vessel be sold as soon as possible to avoid further diminution of the value of the vessel.

"The diminution will cause hardship on the plaintiffs, as the value of the vessel has already depreciated and the continuing costs of maintaining her arrest will only reduce the amount to be recovered," the firms added.

The US$250 million (S$340 million) Equanimity was first seized in Bali by Indonesian authorities in February at the request of the United States Department of Justice as part of its multi-billion dollar corruption probe of 1MDB.

The DOJ has claimed the yacht was part of US$1 billion worth of assets allegedly purchased with funds misappropriated from 1MDB.

Indonesia later handed over the superyacht to Malaysia on Aug 6.

The application will be heard at the Kuala Lumpur Court Complex on Friday.

The plaintiffs have also requested that the sale proceeds of the ship should be paid into court and kept in a bank account in Malaysia as approved by the Accountant-General.

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