The owner of the Nova Star has begun making settlements with companies owed money by the ferry operator, according to court records.

Singapore Technologies Marine, a Singapore shipbuilder that owns the Nova Star ferry, has settled with Portland Pilots, Sprague Operating Resources, and McAllister Towing and Transportation Co. for bills incurred during the ferry’s operation shuttling passengers between Portland and Yarmouth, Nova Scotia.

The vessel was seized by U.S. marshals on Oct. 30 and placed under arrest in Portland Harbor while claims seeking payments of more than $3 million were sorted out in U.S. District Court of Maine.

On Thursday, claims of Portland Pilots, Sprague and McAllister Towing were all dismissed and liens placed against the ferry on their behalf were removed. Portland Pilots, which filed the first claim against the ferry, was owed $195,000 for piloting services. Sprague Operating Resources was owed $147,000 for fuel, and McAllister Towing was owed $12,000 for tugboat services.

Under U.S. maritime law, the federal government can seize vessels if the operator owes money for goods and services deemed “maritime necessities.” Also under maritime law, the ship owner’s interest is subordinate to those with valid liens. If the ship is sold at auction, Singapore Technologies Marine would get whatever money is left over after all other bills are paid.

Other claims, including more than $1 million in fuel charges, a $150,000 loan with the Portland Development Corp. and $85,000 for berthing fees for the city of Portland, remain unresolved.

For two seasons the ferry service, operated by Nova Star Cruises, transported primarily tourists between the two locations in an attempt to buoy Nova Scotia’s tourism industry. The service received $41 million (Canadian) in subsidies from the Nova Scotia government.

But disappointing passenger numbers financially crippled the service. The province decided to go with another ferry operator for the 2016 season.

In addition to the legal action filed in Maine, Nova Star Cruises is locked in another battle with provincial officials over the disbursement of a $2 million surety bond.


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