Klaus E Oldendorff company Reederei Nord has denied allegations arising from the Paradise Papers leak that it tried to switch eights ships to Isle of Man companies to limit accident liability.
The company was responding to a report in the Indian Express daily that it had approached legal firm Appleby after its containership Nordlake was involved in a collision off India with navy frigate INS Vindhyagiri in 2011. The warship later sank.
The newspaper alleged that Appleby records showed the shipowner approached the law firm through lawyer Ulf Bertheau.
There is no evidence any companies were established in the Isle of Man and Reederei Nord told the newspaper: “We do not work with any lawyers on or about the Isle of Man and we do not know the law firm you mentioned.
"All our ships fly EU flags and all offices of our company group businesses are located and registered in EU countries, except for a marketing office in Asia. We pay all taxes in the EU as obliged by law."
It said the only case in which it had dealings with the Isle of Man was about 15 years ago when it transferred a containership from Cyprus for operational reasons.
The vessel was re-registered in Cyprus a few years ago.
It added: “We have worked with the lawyer Mr Bertheau in other matters in the past, but our business relationship has been terminated some years ago. We did not appoint Mr Bertheau for any matter concerning the Nordlake case in India. Bertheau was also not handling the Isle of Man flag case as described above."
Approaches turned down
“Many mediators, lawyers and other 'specialists approached us after the prominent collision of Nordlake and offered a variety services and had very proactive ideas, all unsolicited. But none of them received an appointment from us, other than Ince & Co in London. This law firm represents our interests in India,” the company said.
Ulf Bertheau said in an email: “I am not aware of what you are referring to. Nevertheless, as you will appreciate my professional duties do not allow any comment to your mail.”
Reederei Nord added that Nordlake was released by the Indian authorities after about 12 months of arrest in exchange for an $8m security payment in cash to the courts of India - the vessel's value.
The court case about the question of final responsibility for the damage is still pending in India, it added.
"Any potential liability is covered by our security payment and the vessel’s insurance," it added.
It said the sinking was ultimately caused by fire-extinguishing water while it was alongside the navy terminal.
