UK ship agent in administration on Iran sanctions
Reuters– The UK’s leading ship liner agent has entered into administration due to the loss of business caused by western sanctions imposed on the company’s Iranian shipping client, its administrator said. Johnson Stevens Agencies Ltd, based in east England, had previously represented the Islamic Republic of Iran Shipping Lines (IRISL). In recent months IRISL has faced sanctions-related pressure from both the European Union and the United States, which have said it has engaged in illicit arms shipments.
IRISL has said sanctions “could not paralyze the shipping line. “As a result of the embargo on IRISL, it caused immense problems including withdrawal of banking facilities, which meant trading was extremely difficult,” said David Merrygold, a partner with PKF who are administrators of Johnson Stevens.
“Having lost a big customer, it is extremely difficult to replace a large customer in the short term,” he told Reuters. PKF said that after U.S. and EU sanctions were imposed on IRISL, Johnson Stevens’ banking facilities were withdrawn, which caused cash flow difficulties. PKF said with the loss of the IRISL contract, the UK company’s directors sought to replace it with alternative contracts and were hopeful of attracting a major new line.
“However, in May 2011 the directors realized that the new line would not start within the immediate future. It then became clear to the directors that the company could not continue to trade due to the historic issues with IRISL,” PKF said.
Kestrel Liner Agencies has acquired most of the interests of Johnson Stevens, which had represented shipping lines to niche areas of the world. “The IRISL situation was dreadful for them. It was a huge principal, and they were earning a lot of money out of that agency,” Andy Thorne, Kestrel’s owner told Reuters. “They were told overnight to find a new bank … anything that was tarred with IRISL and the sanctions everyone became very concerned with,” he said. Thorne said Kestrel has become the UK’s leading shipping liner agency with a group turnover of around 50 million pounds ($81.5 million). Last month the EU targeted over 30 IRISL holding companies as part of moves to tighten sanctions on the Islamic Republic. Separately, the U.S. imposed Iran-related sanctions on a number of companies last month including Israel’s Ofer Brothers Group and their Singapore-based unit Tanker Pacific, accusing them of selling a tanker to IRISL. Ofer has denied any wrongdoing, and IRISL has said it had “no deal” with the companies nor had it bought a tanker.
IRISL has said sanctions “could not paralyze the shipping line. “As a result of the embargo on IRISL, it caused immense problems including withdrawal of banking facilities, which meant trading was extremely difficult,” said David Merrygold, a partner with PKF who are administrators of Johnson Stevens.
“Having lost a big customer, it is extremely difficult to replace a large customer in the short term,” he told Reuters. PKF said that after U.S. and EU sanctions were imposed on IRISL, Johnson Stevens’ banking facilities were withdrawn, which caused cash flow difficulties. PKF said with the loss of the IRISL contract, the UK company’s directors sought to replace it with alternative contracts and were hopeful of attracting a major new line.
“However, in May 2011 the directors realized that the new line would not start within the immediate future. It then became clear to the directors that the company could not continue to trade due to the historic issues with IRISL,” PKF said.
Kestrel Liner Agencies has acquired most of the interests of Johnson Stevens, which had represented shipping lines to niche areas of the world. “The IRISL situation was dreadful for them. It was a huge principal, and they were earning a lot of money out of that agency,” Andy Thorne, Kestrel’s owner told Reuters. “They were told overnight to find a new bank … anything that was tarred with IRISL and the sanctions everyone became very concerned with,” he said. Thorne said Kestrel has become the UK’s leading shipping liner agency with a group turnover of around 50 million pounds ($81.5 million). Last month the EU targeted over 30 IRISL holding companies as part of moves to tighten sanctions on the Islamic Republic. Separately, the U.S. imposed Iran-related sanctions on a number of companies last month including Israel’s Ofer Brothers Group and their Singapore-based unit Tanker Pacific, accusing them of selling a tanker to IRISL. Ofer has denied any wrongdoing, and IRISL has said it had “no deal” with the companies nor had it bought a tanker.