Asia/Pacific News
U.S. Judge Authorises $500,000 in Bunker Payments for Arrested TMT Vessel
U.S. bankruptcy judge Marvin Isgur this week authorised over $500,000 in bunker fuel payments to help restart one of several arrested vessels belonging to troubled Taiwanese shipping firm Today Makes Tomorrow (TMT).
The decision was one of a number of recent developments in TMT's ongoing U.S. bankruptcy case which was filed in June.
Documents filed Tuesday at the Southern District Court of Texas showed the bunker payments are part of $1.8 million in authorised spending to restart Panama-flagged bulk carrier M/V A Duckling, which was arrested in Yantai, North East China earlier this year.
Those funds are part of a potential $20 million loan from Maquarie Bank, of which $6 million has so far been authorised for use following a separate court decision that TMT chairman Nobu Su was able to use shares in Vantage Drilling as collateral, said to be valued at $40.75 million.
Ship & Bunker understands that prior to the ruling, questions had been raised over the shares' eligibility due to separate action by Vantage Drilling.
A further order by Judge Lynn N. Hughes requires Su to supplement the collateral with an additional 4 million shares, which TMT valued at $6 million.
Earlier last week, Judge Hughes also reviewed a July ruling over the validity of the bankruptcy filing itself, and signed an order on October 8, 2013 declaring it to have been made "in good faith and with jurisdiction."
In an emailed press release issued on Monday, Su said the decision was "welcome news" and he would "keep battling on in the interests of everyone in Taiwan."
TMT has previously complained that banks are "obsessed" with shutting the company down.
Commenting on the latest developments, the firm's lead lawyer Evan Flaschen of Bracewell & Giuliani said they hope their lenders would now "see the virtue" of working consensually with them.
"But even if they don't, we will go full steam ahead towards reorganization," he added.
