Crystal Cruises has been slapped with a temporary restraining order by a US federal judge as two of its ships sit 175 km northeast in the Bahamas.
The Genting Group subsidiary is barred from discharging any assets until further direction from US District Judge Darrin Gayles to preserve Freedom Fresh's claim for roughly $300,000 for produce delivered but never paid for according to court documents filed 4 February.
“Crystal Cruises informed [Freedom Fresh] that Crystal Cruises’ parent company filed for liquidation proceedings and is unable to pay to [Freedom Fresh] the undisputed amount owed … without authorization from Crystal Cruises’ attorneys or bank,” Gayle wrote in the order.
“There is little harm to [Crystal Cruises] in granting an injunction, which only requires [them] to do that which they are required to do under the statute.”
Freedom Fresh's claims total just over $492,000 arising from sales made beginning July 2021, but only part of them are covered by a law governing trade practices for perishable agricultural commodities.
The Florida company first sued on 31 January, 12 days after Genting Hong Kong filed for liquidation.
It was the same day Penninsula Petroleum sued to arrest the 940-berth Crystal Symphony (built 1995) for unpaid bunker fuel bills.
Penninsula's claims total $3.4m, $2.1m from Crystal Cruises and $1.3m from sister company Star Cruises.
To avoid arrest, Crystal Cruises then diverted the 940-berth Crystal Symphony (built 1995) from its intended destination in Miami to the Bahamas, with the company arranging other transportation to Florida for passengers.
The ship has since been arrested there, alongside the 940-berth Crystal Serenity (built 2003) in Freeport.
The Crystal Serenity had attempted to dock in Aruba, but was denied by local authorities before sailing to the Bahamas.
Automatic identification system (AIS) data shows both ships are at anchor in Freeport.
The Bahamas Maritime Authority (BMA), which flags the two ships, said they had been detained by the Bahamas Admiralty Marshal but did not say why. Some reports had suggested that US Marshals had arrested the ship, though it was unclear how they would have had the authority to do so.
“The BMA’s priority and commitment is to ensure that the ships continue to comply with the applicable Bahamas national registration requirements and the international conventions that include safety, security, environmental protection and seafarers rights for the ships,” the BMA said.
The US Marshals denied they had any involvement in the arrest.
Crystal Cruises declined to comment on pending legal matters.
“Crystal Serenity and Crystal Symphony’s voyages ended last month and there are no guests on board,” the company said in a statement.
“The officers and crew on board are being well cared for and staying in single accommodations some of which are guest staterooms. We are making sure they are comfortable and able to enjoy the various amenities on board. Crew members have been paid all wages due and we are meeting and exceeding all contractual obligations.”
The statement follows reports from Miami maritime attorney Jim Walker who published statements over the weekend from ostensible crew members saying they have not been paid and that the ship are out of food and fuel.
Walker cited a crew member aboard a third Crystal Cruises ship, the 200-berth Crystal Endevaor (built 2021), who told him it had been arrested in Argentina.
It is unclear whether the ship was arrested or if its arrest had been resolved, as AIS data shows that ship underway in the Atlantic Ocean near the Falkland Islands.
Genting Hong Kong is part of the larger Genting Group, an entertainment and leisure empire run by Malaysian businessman Lim Kok Thay which includes casinos and hotels in addition to cruise lines.
Sources have told TradeWinds that if a buyer for Crystal Cruises is not found it could be sold off piecemeal and that banks could step in to control the Crystal Endeavor, the youngest ship linked to Genting Hong Kong on the water.
The company has two other ships under construction, with the Global Dream and the Global One, which were set to sail for its Dream Cruises brand in 2022 and 2023, respectively.
