NYK Line has seized a tanker in Louisiana, accusing its purported owner of fraud after a bulker charter gone wrong.
The Japanese shipping giant filed a $3.25m lawsuit against vessel's current and former registered owners on Tuesday. It also targeted Turkish firms Active Shipping & Management and Active Denizcilik Ve Gemi Isletmeciligi.
The 115,406-dwt Riverside (built 2009) is currently moored in the Mississippi River near Baton Rouge.
NYK Line's lawyers argued that the quartet of companies targeted in the lawsuit are shell companies controlled by Mehmet Ali Umar or family members.
They said in legal papers that the alleged scheme that was discovered after the NYK-chartered 169,234-dwt bulker Cape Providence (built 2010) was arrested in South Africa in March.
"NYK was caused significant damages, lost profits, costs and expenses as a result of the loss of use of the [Cape Providence] ... while the vessel was under seizure," Daphne McNutt of law firm Barry & Co argued in the complaint.
NYK Line said it chartered the Cape Providence in June 2018 for a maximum of 12 months, later extended by another 15, from registered owner Providence Navigation.
In December 2019, Active's fleet manager allegedly approached NYK Line to revise the charter to reflect defendant Riverside Navigation as the ship's registered owner, citing the company's upcoming refinancing.
That March, the Cape Providence was arrested by its mortgagee Nassau Maritime Holdings Designated Activity Company purportedly over unpaid bills.
'Alter egos'
NYK Line argued that current registered owner Glory Riverside Navigation, former registered owner Riverside Navigation, and the two Active companies are corporate alter egos. Riverside Navigation controlled the vessel until July 2018, when its ownership changed to Glory Riverside.
The company's lawyers cite mortgage documents that list the two registered owners as borrowers for the Cape Providence and Umar as the attorney-in-fact for each of the companies, which also share an Istanbul address.
The two registered owners "have no office, no phone number, no employees, no staff and no identifiable presence", NYK Line alleged in the complaint.
"They are shell companies which Active and Mr Umar operate from Active's Istanbul offices."
NYK Line further argued that Active knew the Cape Providence's mortgage was underwater when it chartered the ship, and thus engaged in fraudulent activity by chartering it.
In an email, Halim Umar identified himself as the Riverside's owner and called the seizure "very disturbing".
"This comes as a surprise to us, though we have just been informed that the vessel has been arrested," he wrote.
"The arrest is absolutely unlawful and we are already taking the necessary steps to assert our rights. The vessel has absolutely nothing to do with NYK and there can be no suggestion that the vessel and the 'Cape Providence' are corporate alter egos."
Active's company's website lists nine ships in its fleet — five tankers and four bulkers, including the Riverside and the Cape Providence.
In September 2019, TradeWinds reported Active Shipping was said to be in talks for a Chinese leasing deal.
Earlier in the year, the company sold a suezmax tanker to John Fredriksen's Frontline for $66m.
