1MDB and govt apply for quick sale of Equanimity to avoid further depreciation

KUALA LUMPUR: The sale of the superyacht Equanimity should be expedited, according to a court order filed by 1Malaysia Development Bhd (1MDB) and three other parties.

1MDB, its two subsidiaries, 1MDB Energy Holdings Ltd and 1MDB Global Investment Ltd, and the government have named the owner of the ship Equanimity of Cayman Islands as the sole defendant in the suit filed via the law firm of Jeremy Joseph and partners on Thursday (Aug 23).

In the notice of application, the four plaintiffs are asking 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 Kuala Lumpur.

The firms want the sheriff to receive bids or offers for the vessel and the bunkers, and for the purchase price to be paid to the sheriff in US dollar, euros or ringgit.

The plaintiffs said 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.

The firms said the sheriff and/or the plaintiffs should be authorised to arrange and pay for the repatriation of the vessel's master, officers and crew.

The notice also stated that 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.

On Aug 6, a writ of summons was issued to the owner of the vessel as well as to Wilson Yacht Management Ltd, the company that operates the Equanimity.

The hearing of the application has been fixed for Aug 24 at the Kuala Lumpur Courts Complex here and will be followed by a press conference.

The superyacht arrived in Malaysia on Aug 7 after being handed over by the Indonesian authorities.

The Equanimity was seized off the coast of Bali by Indonesia in February at the request of US authorities as part of a multi-billion dollar corruption probe launched by the US Department of Justice (DoJ) over 1MDB.

However, an Indonesian court ruled in April that the seizure was illegal and that the yacht should be returned to its owners.

But Indonesian authorities seized the yacht again in July following a formal request for legal assistance from the US. Indonesia then agreed it would hand over the superyacht to Malaysia.