By Daniel Katzive (gCaptain) – A settlement has been reached in the financial dispute between the owners and operators of Rose Cay Maritime’s fleet of Jones Act Articulated Tug/Barge combinations and tanker barges. Coast Guard liens filed by the operating company on the ATBs and barges will be lifted and the unit arrested last month in Panama has been released and allowed to continue to its destination. However, the path for return to service for the vessels remains unclear.
Documents filed in United States District Court in the Southern District of New York this week indicate that arbitration efforts have led to a formal settlement being reached between Pennantia LLC, the owner of the vessels, and Rose Cay Maritime and Dove Cay Maritime, the operating companies. Under the settlement, Pennantia will make a payment to the operators. The amount of the payment was sealed by the court and redacted from the settlement agreement released to the public record.
Rose Cay Maritime was launched in 2021 to manage 18 vessels (eight ATB units plus two additional barges) purchased by Pennantia LLC at auction from the bankrupt Bouchard Transportation Company. Pennantia is 86.25% owned by Contrarian Capital Management LLC, a credit investment firm, and 13.75% owned by Rose Cay, according to court records. A separate company, Dove Cay, was formed in 2022 to act as technical and crewing sub-manager of the fleet.
As first reported by gCaptain two weeks ago, Dove Cay claimed Pennantia owed the company $29 million and filed maritime liens against the vessels in July and an arrest order for the Lynn M Rose unit that was transiting the Panama Canal at the time. Rose Cay and Dove Cay later terminated their operating agreement with the owner, demobilizing the fleet and reducing crews to “safe manning” levels. For its part, Pennantia claimed in court filings that the invoices presented by Dove Cay and Rose Cay were inflated and that Rose Cay manipulated the fleet’s vessel operating account to create an appearance of underfunding.
AIS data shows the Lynn M Rose/RCM 270 ATB unit left anchorage off Panama’s Pacific Coast earlier this week and appears to be in transit to Long Beach, California, where it will deliver its cargo of renewable diesel. Three of the company’s other ATB tugs remain moored at various locations around New York Harbor, while Rebekah Rose remains off AIS after last pinging in Sabine Pass last month.
Under the terms of the settlement, Pennantia is prohibited from operating the units under the Rose Cay trademark and must remove branding from the vessels. Court records filed earlier in the dispute indicate that the owner was seeking to sell the units and they may return to service under new ownership or management at some point.
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