Arrest warrant issued over cruise ship over unpaid fuel bills - ship diverts from planned stop in Miami and heads to the Bahamas

bcla

On our rugged Eastern foothills.....
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Can't make this up. A judge ordered that the ship would be seized and apparently sold to pay off the bills, so they diverted to the Bahamas. If they can't afford the bills, I'm thinking they're probably not going to reimburse the passengers and (maybe) crew who have to find an alternate way home and/or had travel plans based on their schedule.

The Crystal Symphony, a luxury cruise ship operated by financially-strapped Genting Hong Kong Ltd., will be seized to repay $1.2 million in unpaid fuel bills if it docks in Miami, amid reports the vessel is being diverted to the Bahamas after a U.S. court issued an arrest warrant.​
A U.S. marshal and a court-appointed custodian are ready to arrest the ship if it comes into port as scheduled Saturday in the Florida city, according to J. Stephen Simms, the lead attorney representing Peninsula Petroleum Far East Pte. Ltd. who said he has been told of the plan. Ship-tracking data indicates that the vessel docked in the Bahamas on Saturday evening, where a U.S. arrest warrant can’t be executed.​
An arrest warrant has been issued for Crystal Cruises' Crystal Symphony due to unpaid fuel bills, according to case documents obtained by USA TODAY. The warrant enables authorities to take custody of the ship.​
Now, passengers have been on board an extra day as the ship changed course and avoided docking in Miami where it might have been met by a U.S. marshal.​
On Saturday, the ship sailed toward Bimini after skirting its planned disembarkation. Initially, the ship was meant to return to Miami on Saturday, ending a round-trip cruise that began Jan. 8, according to Cruise Mapper. Crystal Cruises' parent organization, the Genting Group, owns Resorts World Bimini, and the Crystal Symphony is a Bahamas-flagged vessel.​

Looks like they've been having problems for some time where the company is in liquidation. I guess this might save this particular asset before it's seized.

Genting Hong Kong has filed a winding-up petition in Bermuda, after the bankruptcy of its shipyard in Germany triggered US$2.78 billion of debt and forced Asia’s largest operator of sea cruises to be liquidated.​
The owner of Dream Cruise Holding appointed Alvarez & Marsal’s Edward Simon Middleton and Tiffany Wong Wing-sze as provisional liquidators, according to a filing on Wednesday to the Hong Kong stock exchange. Alvarez & Marsal declined to comment when contacted by the Post.​
 

Genting Hong Kong, Ltd is just one of a number of major Chinese firms in major financial trouble. We'll see some additional Chinese bankruptcies in coming months.
 
Just when you think cruising can’t get any more unpredictable, the ships are getting arrested. I want to see the ship in the holding cell and at the defendant’s table in the courtroom. Is there a special brand of lawyer that represents inanimate objects in court?

Seriously, I would have understood if the news reports said the ship would be seized to pay the debt, but arrested? Really?
 
There are actually repo firms that specialize in large ships; this is the most successful, out of New Orleans. http://www.vesselextractions.com/

They use exactly the tactics that the guys who repossess cars do, like hotwiring the ship and sneaking it away under cover of darkness.
 
Genting Hong Kong, Ltd is just one of a number of major Chinese firms in major financial trouble. We'll see some additional Chinese bankruptcies in coming months.

It's still a Hong Kong based company that does business in Hong Kong Dollars. Regardless of other matters, Hong Kong does still have a separate free-market economy separate from than the PRC, and Genting's problems don't seem to be due to issues with the Chinese economy, although one of their cruise lines seems to be based in China. And Crystal is based in Miami.
 
Just when you think cruising can’t get any more unpredictable, the ships are getting arrested. I want to see the ship in the holding cell and at the defendant’s table in the courtroom. Is there a special brand of lawyer that represents inanimate objects in court?

Seriously, I would have understood if the news reports said the ship would be seized to pay the debt, but arrested? Really?

All the articles I could find on this called it an arrest warrant under some sort of special maritime law. This is what I could find:

Plaintiff:​
PENINSULA PETROLEUM FAR EAST PTE. LTD.
Defendant:​
M/V CRYSTAL SYMPHONY, CRYSTAL CRUISES LLC. and STAR CRUISES (HK) LIMITED
Case Number:​
1:2022cv20230
Filed:​
January 19, 2022
Court:​
US District Court for the Southern District of Florida
Nature of Suit:​
Contract: Marine
Cause of Action:​
28 U.S.C. § 1333
Jury Demanded By:​
None


Ship arrest is a civil law admiralty procedure which is practically entered upon an activity or enterprise by imposing a ‘Warrant of Arrest’ on the ship. This article provides the reader with an insight into ship arrest, its reasons, uses and consequences and everything one may ever want to know about the topic concerned.​

So yeah it's an arrest warrant and not just a judicial seizure order that a county sheriff or US Marshal would normally enforce. But the US Marshals Service does enforce them.

Summons, Complaint and Warrant of Arrest In Rem
A warrant of arrest in rem may be initiated either by a private party or by a federal agency. Where initiated by a private party, the warrant is issued to enforce a maritime lien against a particular vessel or cargo. Where initiated by a federal agency, the warrant is issued to enforce a forfeiture pursuant to a federal statute. When the forfeiture action is against real property, a notice of the complaint will be posted in lieu of serving a warrant of arrest in rem.​
 
I've been following this since they announced an arrest warrant had been issued, this was before the ship ran away from U.S. waters.

I believe the arrest warrant gave them the authority to board the vessel, etc.

It's crazy how much this one ship owed (I think I read something like $1.2 million) alone. Did Bimini allow them to refuel there?

The updated story I read last night said the company still had 2 ships at sea (one returning on January 30th in Aruba and another February 4th in Argentina).

It's def. an interesting situation unfolded and shows just how complicated international waters can be. One of the guests posted on FB "We all feel we were abducted by luxurious pirates!" sure is an different twist on the whole piracy thing.
 
I've been following this since they announced an arrest warrant had been issued, this was before the ship ran away from U.S. waters.

I believe the arrest warrant gave them the authority to board the vessel, etc.

It's crazy how much this one ship owed (I think I read something like $1.2 million) alone. Did Bimini allow them to refuel there?

The updated story I read last night said the company still had 2 ships at sea (one returning on January 30th in Aruba and another February 4th in Argentina).

It's def. an interesting situation unfolded and shows just how complicated international waters can be. One of the guests posted on FB "We all feel we were abducted by luxurious pirates!" sure is an different twist on the whole piracy thing.

It was a Bahaman registered vessel, so maybe there was something to going back where they believed that it wouldn't get seized, or maybe even that they're stalling.

So "in rem" means against a thing. So yeah this is just a really obscure way to describe it, but it really is an arrest warrant.
 
It was a Bahaman registered vessel, so maybe there was something to going back where they believed that it wouldn't get seized, or maybe even that they're stalling.

So "in rem" means against a thing. So yeah this is just a really obscure way to describe it, but it really is an arrest warrant.
I was just thinking about the unpaid fuel. Pretty risky for any place (regardless of where it was registered at) to allow them to refuel knowing they haven't paid (and a decent amount too) others for fuel and it's not just this ship. It's possible they will just stay put in Bimini for the time being. Will be something interesting to watch.

They are def. stalling no matter what they do (stay put, refuel and just sail to somewhere else, etc) They literally ran away from authorities and either are hoping the debt gets settled somehow (paid, as part of bankruptcy issues, etc) or some other diplomatic thing gets worked out or I guess that they can just float around. Feel bad for the crew, not like they asked to be a part of this. And the passengers too. My husband was wondering if the passengers themselves would try to sue the company, apparently it was not calmest of seas getting into FL on that ferry. I don't know how many passengers are left, that remains unclear at least from the article I read that said "some passengers" were taken on the ferry.
 
I was just thinking about the unpaid fuel. Pretty risky for any place (regardless of where it was registered at) to allow them to refuel knowing they haven't paid (and a decent amount too) others for fuel and it's not just this ship. It's possible they will just stay put in Bimini for the time being. Will be something interesting to watch.

They are def. stalling no matter what they do (stay put, refuel and just sail to somewhere else, etc) They literally ran away from authorities and either are hoping the debt gets settled somehow (paid, as part of bankruptcy issues, etc) or some other diplomatic thing gets worked out or I guess that they can just float around. Feel bad for the crew, not like they asked to be a part of this. And the passengers too. My husband was wondering if the passengers themselves would try to sue the company, apparently it was not calmest of seas getting into FL on that ferry. I don't know how many passengers are left, that remains unclear at least from the article I read that said "some passengers" were taken on the ferry.

The company is in liquidation. If anything, the hired liquidators might be trying to protect the value so that the ship isn't sold at an absolutely fire sale price to just cover that fuel bill. The liquidation started after the ship sailed though. It's got to be interesting because I'm sure the crew heard about it and is worried that they won't get paid. I'm sure some don't have permanent housing since they're on a ship most of the time. I get that it's tough work, but they get housing and food covered while they're on the ship.

The embattled cruise operator said it filed the application to wind up the company at the Supreme Court of Bermuda, after the company “exhausted all reasonable efforts to negotiate with the relevant counterparties under its financing arrangements.”​
However, the firm said in its Wednesday filing that certain businesses — including but not limited to the operations of cruise lines by Dream Cruises — shall continue.​
Genting Hong Kong owns Star Cruises and Dream Cruises, which operate in the Asia region, as well as the Resorts World theme park in Manila. It also owns the Crystal Cruises line which offers a range of round trips from Miami, Antarctica and Barcelona.​
 
It's time for them to hoist the Jolly Roger!
OIP.BDXsCqEQxQ18_pioNy9ghAAAAA
 
Looks like the ship that was supposed to arrive in Aruba is being denied port access. It was supposed to drop off all the passengers. The ship was paid up in advance for what was owed to Aruba but Aruba denied the ship for porting. This ship was one that was on a 116 day itinerary that was cut 3 days in due to the financial issues if the parent company.

**Note this is not the ship that has the arrest warrant but it appears the company's reputation and likely that they have a ship with an arrest warrant is going into Aruba's decision (speculation on my part).

Looks like at least some of those passengers on this ship denied port access in Aruba were supposed to go to another cruise ship that would be docked in Aruba but they are still working out to see if that other cruise ship company will pick up those passengers scheduled to be on their ship but pick them up instead in Bimini.

Crystal did say for the passengers on the ship they would pay for accommodations in Fort Lauderdale and will rebook any airfare booked with them. Those that did not book with them can fly out of Fort Lauderdale or Miami and Crystal will pick up the change fees (no word on fare difference mentioned in the article I read).

What a mess.
 
Looks like the ship that was supposed to arrive in Aruba is being denied port access. It was supposed to drop off all the passengers. The ship was paid up in advance for what was owed to Aruba but Aruba denied the ship for porting. This ship was one that was on a 116 day itinerary that was cut 3 days in due to the financial issues if the parent company.

**Note this is not the ship that has the arrest warrant but it appears the company's reputation and likely that they have a ship with an arrest warrant is going into Aruba's decision (speculation on my part).

Looks like at least some of those passengers on this ship denied port access in Aruba were supposed to go to another cruise ship that would be docked in Aruba but they are still working out to see if that other cruise ship company will pick up those passengers scheduled to be on their ship but pick them up instead in Bimini.

Crystal did say for the passengers on the ship they would pay for accommodations in Fort Lauderdale and will rebook any airfare booked with them. Those that did not book with them can fly out of Fort Lauderdale or Miami and Crystal will pick up the change fees (no word on fare difference mentioned in the article I read).

What a mess.

I was wondering wen their reputation would catch up to them. That's one of the problems with a company in bankruptcy trying to stay afloat (pun intended) in an industry that relies on credit.
 
Welp the saga is over at least for them evading arrest.

Both ships were actually arrested in waters near port near Freeport, Bahamas although the information I read said it was unclear how due to jurisdiction rules.

So Serenity was the ship that was denied port access in Aruba and was out of fuel soooo that makes it sound like it was not allowed to refuel in Bimini or it was not able to get enough fuel to last too too long. It had actually left Bimini sailing near FL's coast but must have eventually turned back towards the Bahamas to be near the other ship.

Symphony is the ship that had the original warrant out for it. The article I read said it Symphony was out of food.

Some staff appeared to be up to date on wages others are saying they are waiting on pay. Crew are reporting if they didn't complete their 3 month contract you'd have to resign and purchase your own flight home.

Now for the last ship that was out at sea and was scheduled to be in Argentina? That ship has also been arrested.
 







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