As a US built Jones Act vessel with a small crew of only about a dozen that is capable of getting and performing government contracts, Geysir has value. It’s worth more than $100,000 for scrap. If still serviceable, it worth a lot more. If the ship were tied up in litigation for a couple of years , it would not sell for much at auction. If the ship stays operational, it has value even at promptly held auction.
I would not worry too much about the recorded liens, its the inchoate (unrecorded) liens that would scare me. A US Marshal’s auction under Admiralty law sweeps the bottom clean of all liens. That’s the way I’d want to buy. A bankruptcy court auction only clears the liens and claims that are before the court. Potential future claims, such as seamens injury claims that occurred in the past but have not yet been filed, would be my concern. A bankruptcy auction would not prevent those claims from being filed against the ship in the future.
If TAL has $18 million in pending government contracts , those are its most valuable assets. The second most valuable asset is the ability to get such contracts. I’d want to buy the entire company for 10 cents on a dollar in a bankruptcy sale. The value of the ships doesnt matter much.