Tussle over who will pay gambling boat's debts

Two trusts and the management company that hired the Honduran captain and crew appear to have acknowledged that they are owed unpaid wages.

But they remain divided on who should be responsible for paying the men and settling other debts associated with the boat.

The Niobe Corinthian is currently tethered in St David’s, unflagged, and is facing the prospect of seizure and sale by the Bermuda Government for unpaid debts.

The boat is owned by BVI registered company Estrellas Management, the shareholders of which are 55 per cent William Trust and 45 per cent Sirkus Trust.

It has been managed by Wise Way Enterprises, a separate company.

Cheryl Simmons, a representative for Wise Way, accepted the company had a contract with the captain and crew.

The company acknowledges that the men are owed four months wages as well as partial wages since September of last year.

But its representatives claim to have lost millions on the doomed venture and say they can no longer afford to pay.

In a letter to the Sirkus Trust, dated March this year, Wise Way’s representatives says it can no longer manage the ship and call on the Trust to help pay the expenses.

“It is Wise Way Enterprise Ltd view that the Sirkus Trust are collectively responsible for the administration and maintenance of the M/V Niobe Corinthian, which is under threat of seizure by the Bermudian authorities.

“Further, you have been advised of non-payment of the seamens’ wages and the non-provisions of foodstuffs etc for the captain and crew.

“You are also aware that the BIU has been informed of these deficiencies. These matters are not the responsibility of Wise Way Enterprises Ltd as you know. As legal owner, it is partially yours.”

In a letter dated March 18, Capital G director Hal Masters, acting as a consultant for the Sirkus Trust, writes to inform of its position on the dispute.

He acknowledges that the men are owed money and offers a ‘gift’ of travel expenses and a ticket home.

“We are, of course, concerned with the plight of those members of the crew who remain onboard the M/V Niobe Corinthian. It is our considered opinion that these individuals should be immediately repatriated to their country of domicile.

“It is unfortunate that there remain outstanding wages due and owing to these individuals but it is clear that the members of Estrellas Management (BVI) Ltd are without sufficient funds to enable these wages to be settled.

“However, upon a disposition of the M/V Niobe Corinthian the crew will have a property lien on the proceeds of the sale for any outstanding wages that may be due.

“Accordingly we are comforted that in all likelihood they will be made whole in the fullness of time.

Air tickets

“In the interim, however, we have approached Capital G bank who have graciously agreed to advance by way of a gift, sufficient funds to pay for airline tickets and travel expenses to allow the individuals in question to leave Bermuda immediately.”

Alan Dunch, legal representative for Capital G Trust which is the trustee of the Sirkus Trust, said the Trust was simply a shareholder in the company that owned the boat.

He said Capital G had made an offer of travel expenses as a gesture of goodwill and ‘in the interests of humanitarianism’.

“A very generous offer was made many weeks ago and that offer is still open to pay for the men’s travel expenses back to their home country.

“The wages of these men would be considered a priority against any income that might be forthcoming if the vessel is sold. Staying on the vessel doesn’t give the men any more protection than they already have.”

He said the Trust’s position was that it would be appropriate for the boat to be seized by Government, which is also owed money, and sold at auction with the proceeds used to pay off the debts associated with the venture.

He added that the men’s personal situation was unfortunate but insisted it was the responsibility of the management company alone.

Phil Perinchief, who represents the William Trust, said all the shareholders should take joint responsibility for making the boat seaworthy.

“They have a fiduciary duty to take care of this ship,” he added. Mr Dunch disagreed.

Exclusive report:

• Stranded and broke: Crew of outlawed gambling ship 'owed $28,000'
• Three men on a boat
• Tussle over who will pay gambling boat's debts