Local company formed for commercial fishing

A Seattle-based businessman said that his team has registered a local company for a proposed commercial fishing project in the CNMI.

Courtney L. Zietzke, president of Lady Kimberly said he has submitted corporate documents to the Commonwealth Development Authority that confirms the formation of “two new CNMI corporations that are domiciled in the CNMI” for the pending commercial fishing project.

“Per CDA requirements, the corporations are majority CNMI owned,” said Zietski in an email to Saipan Tribune.

He said that Lady Kimberly will be transferring the vessel assets to the new CNMI corporation known as Northern Mariana Fisheries Inc.

The insurance requirements, he said, are being met to satisfy all CNMI insurance regulations, and a new local office is being setup.

He said the new corporation, NMFI, is awaiting the CDA guarantee to complete a loan package with a local bank, Bank of Guam.

The local bank, he said, has indicated that the CDA must act first in order to complete the process.

For its part, CDA earlier required that the bank letter of commitment be submitted first before it grants a bank guarantee for Zietzki’s group.

“This presents a potential problem with the loan package because the CDA needs to act first in order to complete the financing package for the local bank,” said Zietzki.

He said that the corporation, NMFI, has “unconditionally pledged vessel assets to the lending bank and the CDA for the project to commence.”

He said their two vessels have been certified at a value of $1.8 million.

Additional assets will be bought and pledged out of the proceeds of the funding being sought, he said.

The total assets being pledged for the project will exceed $2.5 million.

The CDA is being asked to provide a guarantee for $600,000 or 25 percent of the total capitalization.

Ziezki said the fishing company will employ CNMI citizens and will issue 51 percent equity to local and charity interests in the CNMI.

He said that CDA’s financial risk in the venture “is almost nothing” considering that the CDA is a loss payee on all insurance policies that have been previously confirmed to the CDA by an international insurance company.

Lady Kimberly is handled by Lloyds of London.

“We are looking forward to this exciting project. It is our sincere wish that these minor difficulties can be worked out to everyone’s satisfaction,” said Zietzki.

The CDA, in a Dec. 1, 2005 letter, is giving Zietzki’s company one month to comply with all the needed requirements: setting up of a local office, submission of a bank letter of commitment, and insurance policy that complies to CNMI laws.