The head of Patriot Offshore Inc and an early investor are looking for $18.2m from World Marine Offshore, accusing the Danish shipowner of scuttling their opportunity at a big offshore wind contract.
A lawsuit filed in a US federal court in Boston said the two companies came together to form Patriot Offshore Marine Services to build crew transfer vessels for the Vineyard Wind project offshore Massachusetts.
But World Marine abruptly departed the joint venture, allegedly to pursue business with rival Foss Maritime.
“As a result of WMO [World Marine Offshore]’s actions, [General Electric] cancelled its contract for two [CTVs],” Patriot Offshore Inc founder Michael Landry and Maine-based co-plaintiff Treadwell Franklin Infrastructure Capital said in the lawsuit filed on 7 September.
“WMO withdrew from [Patriot] to specifically pursue opportunities with Foss and other US maritime companies in direct opposition of the memorandum of understanding and interim operating agreements.”
Landry and Treadwell Franklin said World Marine misrepresented the power former chief executive Lars Christian Zohner had to create the joint venture — in which Landry held 51% and World Marine owned 49% — and used that excuse to avoid extending investment before dropping out entirely.
“Either Zohner had authority to act on behalf of WMO or he did not,” the plaintiffs said in the complaint. “At all relevant times, the defendants lied to [Landry and Treadwell Franklin].”
The lawsuit describes World Marine’s attempts to recapitalise in 2021 as Patriot Offshore worked to secure charters and newbuilding slots for the CTVs.
World Marine engaged with Foss, another US-based company making a push into offshore wind, and Tidewater for investment. Patriot Offshore had discussions with Long Island-based Liberty Maritime, which the complaint said Zohner was against, and Foss, which Landry deemed an unsuitable investor.
The complaint describes World Marine as continually suggesting Foss as an investor, even though Foss was described as unresponsive following a meeting between the companies.
Patriot Offshore would eventually secure a charter with General Electric in November 2021 to build two CTVs, but shortly thereafter Zohner was removed as chief executive of World Marine and was replaced by Hans Schneider.
The next month, Schneider would tell Landy and Treadwell Franklin that they would not be providing the guarantees necessary to allow Patriot Offshore Marine Services to move forward with the newbuildings.
In January 2022, World Marine would resign from Patriot Offshore Marine Services. Schneider allegedly would not speak with General Electric to clarify why the Danish shipowner left the joint venture. The silence pushed General Electric to cancel the charters.
Schneider had also allegedly forwarded emails from Foss on a joint venture between it and World Marine, making it “abundantly clear that WMO was going into partnership with Foss without Landry or [Treadwell Franklin]”.
A message to Zohner’s email address at World Marine was returned as undeliverable.
World Marine did not otherwise return a request for comment and Foss declined to comment.
In addition to World Marine and Zohner, Schneider and World Marine shareholder Jimmy Kristensen are named as defendants.
Patriot Offshore, under the name Patriot Offshore Maritime Services, would eventually partner with Liberty under its Liberty Green arm and again secure the contracts.
