A VLCC belonging to Dubai-based Gulf Navigation Holding has been stopped at Rotterdam after the company defaulted on its loan repayment, Gulf Navigation said in a statement released Monday.

The 2007-built Gulf Sheba was discharging its cargo at Rotterdam "when DNB, the agent of the lenders for the Gulf Sheba Corporation, issued notice of arresting the vessel at Rotterdam," Gulf Navigation said in a statement to the Dubai Financial Market, one of three stock exchanges in the UAE.

The statement did not mention the date of the arrest.

Gulf Navigation said the vessel has been moved from berth to anchorage in the port area and is awaiting further instructions.

"We are negotiating with the lenders for release of the vessel," Gulf Navigation said. "Lenders may insist on selling the vessel to repay their obligations, as per the notice of foreclosure of the loan issued by them."

The company said it was seeking legal advice from its lawyers.

Gulf Navigation also said it was discussing proposals from prospective buyers for the sale of the Gulf Sheba during the past few months and that it was "in final stages of agreeing on various terms in principle with at least one serious buyer."