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Munson denies motion to release Tinian ferries •Parties failed to reach a compromise on loan payment arrangement
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Posted on Sep 13 1999
Federal Judge Alex Munson denied a motion on Saturday to release the two seized ferries owned by Tinian Shipping & Transportation Inc. (TSTI) after attempts by disputing parties to negotiate a new loan payment plan ended in deadlock.
Munson ordered the seizure of Saipan Express and Tinian Express two weeks ago in connection with the lawsuit filed by Debis Financial Services, Inc. to which TSTI owed an outstanding loan amounting to $7,616,000.
TSTI, a subsidiary of Tinian Dynasty Hotel and Casino, on Friday asked the court to release the vessels by weekend to allow the resumption of the shipping operations.
Saipan Express and Tinian Express cater to the customers of the casino establishment on Tinian.
At Friday’s hearing, Munson said he was convinced that both parties were willing to settle the loan payment problems.
However, during the continuation of the hearing on Saturday, attorneys for TSTI and Debis failed to reach a compromise on the payment arrangement, Munson said.
“They were going to come up with mortgage on the release but no conclusion was reached so far,” Munson said in a brief telephone interview.
“The parties agreed to continue to work it out,” Munson said.
He said he will issue today a written order related to the motion, and a new hearing will be scheduled again this week.
According to the original agreement, TSTI was to pay Debis $753,270 every six months for seven weeks.
But the economic crisis in the region has affected Tinian Dynasty and brought the company into financial distress making it unable to pay its loan to Debis.
In an earlier interview, TSTI spokesman Anthony Ha said an agreement for a payment schedule was reached between TSTI and Debis last May.
However, he said Debis billed TSTI for additional interests as a result of its default on three payments.
TSTI did not agree on the amount billed by Debis, saying it was miscalculated. (MCM)
