Introduction  

The Board of Directors of Marine & General Berhad ("M&G" or "the Company") wishes to announce that its wholly-owned subsidiary, M&G Tankers (L) Pte. Ltd. (“MGTL”), had on 18 October 2018 instituted legal proceedings to intervene in the Admiralty Action by Majorole Shipping Sdn Bhd ("Majorole Shipping" or “the Plaintiff”) against the vessel Semua Bahagia (now renamed as JM Sutera 5) (“the Vessel”).

Background

Majorole Shipping had filed a Writ dated 3 November 2016 for alleged non-payment of services rendered by the Plaintiff to a number of vessels then owned by Semua Shipping Sdn Bhd (“Semua Shipping”), a company unrelated to M&G, and proceeded to obtain a Warrant of Arrest against the Vessel dated 4 November 2016. The Writ and Warrant of Arrest were subsequently served on the Vessel on 8 November 2016. At the time this was done, the Vessel was being laid-up and no crew was on board the Vessel. There was therefore no evidence the Writ and Warrant of Arrest being given to Semua Shipping.

The Plaintiff via a subsequent Notice of Application dated 11 November 2016 applied for an Order to (amongst others) maintain and preserve the Vessel while under arrest. It is understood that no security guards were appointed for the Vessel while under arrest and other action highlighted in the Order to preserve the value of the Vessel were not undertaken. The Plaintiff subsequently obtained a Judgement-in-Default against the Vessel on 10 January 2017. Further to this, it is also understood that the Plaintiff did not seek an order for the sale of the Vessel, despite having arrested her in 2016 and obtaining a Judgement-in-Default. It is noted that while the Vessel was under arrest, it was subject to three (3) mortgages by Malayan Banking Bhd (“MBB”).

Semua Shipping was subsequently wound-up on 9 March 2017 pursuant to a Winding-Up Petition filed by Victory Marine & Offshore Pte Ltd. A Liquidator was appointed in place of the Official Receiver and proceeded to sell the Vessel to Ton Supply International Co Ltd (“Ton Supply International”), who subsequently assigned all its rights to the Vessel to MGTL. Prior to taking delivery of the Vessel, MGTL paid-off the sums due under the mortgages to MBB. MGTL was subsequently registered as the owner of the Vessel in the Malaysian Ship Registry on 8 May 2018 and proceeded to change the name to JM Sutera 5.

Vessel detention

Since the change in name, MGTL has in August 2018 employed the Vessel on a voyage between the Port of Pengerang, Johor Port, Tanjung Langsat Port, Tanjung Pelepas Port and the Port of Samarinda, Indonesia without encountering any restrictions from the Marine Department and or any authorities.

On 28 September 2018 while the Vessel was performing her charter, the Vessel was denied port clearance at the Port of Tanjung Langsat on the grounds that the Vessel was under arrest by the Plaintiff in this action. As a result, MGTL was unable to commence the Vessel’s voyage to Indonesia as scheduled and was only able to do so on 1 October 2018 after security in lieu of the Vessel was furnished as the Plaintiff was not agreeable to release the arrest unconditionally.

Application to appear as Intervener

As MGTL is not a named party to the original proceedings, it has filed to appear as Intervener via an affidavit dated 18 October 2018. The Board of M&G is of the opinion that given the facts, MGTL’s application to intervene is of merit.

This announcement is dated 19 October 2018.