Telesource eyes Dynasty’s vessels

In what appears to be a move to strengthen its business interest in the Northern Marianas, Telesource CNMI Inc. is planning to acquire two ferry boats from Tinian Shipping Company Inc. amid deepening financial troubles gripping the shipping firm.

The two ferry boats is owned by Tinian Shipping, a subsidiary of Hong Kong Entertainment (Overseas) Investment Ltd. which operates the cash-strapped Tinian Dynasty Hotel and Casino.

The shipping company bought the ferry boats in 1997 for $10.8 million from Singapore with the help of a foreign financing firm.

Gov. Pedro P. Tenorio yesterday flew to Tinian for talks brokered by leaders of the island municipality, but it was not clear if any agreement was reached.

Representatives from Telesource and Tinian Dynasty were not available for comments.

Telesource, a construction and engineering firm, was the contractor for the 10-megawatt Tinian power plant, and has won several projects for the construction of schools and the homestead expansion program in Koblerville.

Tinian Shipping is currently facing a lawsuit before a federal court for alleged non-payment of a $7.6 million loan with Debis Financial Services Inc., which it used to acquire the two vessels – M/V Tinian Express and M/V Saipan Express.

Debis Financial had sought to recover the entire amount plus interest of the money it lent to Tinian Shipping. It has also asked the US District Court to order the sale of the two vessels to settle its millions of dollars in unpaid loans to the financing company.

Also named defendant in the case is Hong Kong Entertainment (Overseas) Investment Ltd., which unconditionally guaranteed the payment of Tinian Shipping.

The beleaguered hotel casino complex has been looking for an investor that will bail out the biggest tourism investor on Tinian. Since last year, Tinian Dynasty has failed to settle its unpaid taxes and license fees close to $2 million it owed to the municipal government.

Several times, the Commonwealth Utilities Corp. had threatened to disconnect its water supply from the main system for failing to pay on time. In August 1998, CUC cut off its water supply when it did not pay its billings on time.

Decline in tourist arrivals plus reduction in international travel brought about by the effects of Asia’s financial crisis set off a series of financial woes now confronting the Tinian Dynasty.

Construction of the hotel casino complex and acquisition of two ferry boats cost $150 million. Some $50 million has been set aside for the hotel casino’s operating expenses.