A Singapore shipyard has stepped forward to claim ownership of the Nova Star and defend itself in federal court from creditors who are seeking to get the ship sold at auction so they can get paid.

Singapore Technologies Marine Ltd., which built the $179 million ship in 2010, on Friday filed its first documents in U.S. District Court in Portland in response to the action taken two weeks ago by Magistrate Judge John H. Rich III, who ordered the U.S. Marshals Service to “arrest” the ship, which remains in Portland Harbor.

The vessel provided ferry service for two years, transporting passengers between Portland and Yarmouth, Nova Scotia, on a route created primarily to serve tourists. But the service, beset with financial problems, never reached its performance goals, ending its second season having ferried even fewer passengers than its first. In its wake, several businesses have since stepped forward, filing legal claims that the ferry operator, Nova Star Cruises, owes them money, with the total sum now exceeding $2.6 million.

The Singapore company leased the ferry to Nova Star Cruises, and acquired 10 percent of the cruise service in 2013 with Maine-based Quest Navigation owning 90 percent.

Under maritime law, the ship’s owner’s interest is subordinate to those with valid liens. If the ship is sold at auction, Singapore Technologies Marine, also known as ST Marine, would get whatever money is left over after all other bills are paid.

Because ships sold at auction typically go for less money than they’re worth, the owners will often step in and negotiate a settlement with creditors.

According to the documents filed Friday, ST Marine is demanding the release of the Nova Star and restitution of any security, such as a bond, that may be substituted for the ferry.

The Singapore company is represented by the Portland law firm Thompson, Bull, Bass & MacColl LLC. Johnny Yom, the senior manager for the legal department at ST Marine, certified the company’s ownership of the Nova Star.

Nova Star Cruises has received millions in subsidies from the Nova Scotia government to operate the seasonal ferry service. On Oct. 20, the provincial government gave Nova Star Cruises $1.5 million, its final payment for the season. The money was the last installment of nearly $10 million ($13 million Canadian) the government promised for Nova Star’s 2015 sailing season.

The province two weeks ago ended its contract with Nova Star Cruises and began talks with a different ferry operator, Bay Ferries, to operate a ferry service for the 2016 season.

 

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