Court: TMT filed in good faith and with jurisdiction

today makes tomorrowOCTOBER 14, 2013 — A. U.S. court has told banks in Taiwan and other creditors of Nobu Su's TMT shipping operation that they should help the company stay afloat.

Maquarie Bank, the giant Anglo-Australian bank with a major office in Taiwan, has been authorized to advance TMT $6 million of the $20 million it is owed, says the company.

In Houston, Texas U.S. District Court judge Lynn Hughes declared that TMT had filed for bankruptcy "in good faith and with jurisdiction."

TMT says that this stands in contrast to efforts by creditor banks to get the shipping line shut down.

In the view of many shipping experts, says a release from the company, the global market for trade is now expanding after the long post 2008 recession and TMT's modern ships and highly competitive freight pricing rates are well placed to start earning money again and help repay the loans to creditor banks.

Judge Hughes further upheld the validity of Vantage Drilling shares purportedly worth $40.75 million that Mr. Su had lodged as collateral. Mr Su has agreed to pledge Vantage shares worth a further $6 million to the estate.

TMT lead lawyer Evan Flaschen of Bracewell & Giuliani stated after the hearing: "The debtors' good faith has again been vindicated. We hope that now, finally, our lenders will see the virtue of working consensually with us. But even if they don't, we will go full steam ahead towards reorganization."

Commenting on the judge's comments TMT Chairman, Nobu Su, said: "This is welcome news at a time when Taiwan is celebrating an important festival. I firmly believe that the Chinese people have the right to be players in the world shipping market which cannot be the preserve mainly I will keep battling on in the interests of everyone in Taiwan who wants to see their biggest shipping line stay in business."

Want more? Subscribe now!

News from NASDAQ