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Ferry service resumes • Judge Munson orders release of Tinian vessels
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Posted on Oct 05 1999
Tinian Shipping, represented by lawyer Anthony Long, yesterday paid the court $800,000 representing the loan payment which the company is obligated to pay to Debis Financial Inc. every six months.
The court will turn over the amount of $753,270. to Carlsmith Ball Trust Account to be made available to Debis Financial’s attorney, David Ledger.
Munson also told the Marshal and the court custodian, Allied Marine Surveyors, to continue monitoring the operation of vessels “until further order.”
At the same time, Munson instructed Long and Ledger “to confer in good faith” in order to resolve their differences on whether the leasehold mortgage is acceptable as a substitute security.
The Tinian Casino Gaming Control Commission last week allowed Tinian Shipping’s parent company, Hong Kong Entertainment Ltd., to execute a leasehold mortgage on the real estate property where its hotel casino is situated in favor of the Clerk of Court of the U.S. District Court.
Hong Kong Entertainment owns a lease on some 125,457 square meters of lot now occupied by Tinian Dynasty Hotel & Casino on the island-municipality of Tinian. This shall be mortgaged to the Clerk of Court as security for the release of M/V Tinian Express and M/V Saipan Express.
Long proposed the leasehold mortgage as substitute security for the vessels during Friday’s hearing at the federal court.
He said the seizure of the vessels prohibits the company from generating the funds needed to defend or negotiate for a settlement of the case.
Debis Financial, however, is not interested in the leasehold mortgage as substitute security.
Debis Financial claims that Tinian Shipping owns the company $7,566,511.33 in principal, aside from accrued interests through Feb. 28 of this year in the amount of $11,555.06 and $75,314.08 in late charges.
Tinian Shipping has admitted that it has not paid the entire amount but maintains that Debis has no right to foreclose on the ship’s mortgage.(MCM)
