Marco Polo Seatrade lender agent blasts cash collateral use request

By Caroline Salls

Pittsburgh, Aug. 2 - Marco Polo Seatrade BV lender agent Credit Agricole Corporate and Investment Bank objected to the company's proposed use of cash collateral to fund its operations while in bankruptcy, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

"These bankruptcy proceedings are a sham perpetrated by these Dutch debtors, who have no actual connection with this jurisdiction, to harass Credit Agricole and attempt to thwart its ability to realize on its secured interest in its collateral," the lender agent said in the objection.

With almost $19 million of unsecured debt, $10 million of which is trade debt, Credit Agricole said that the company has given no indication of how the use of $1.7 million in cash collateral will help.

The lender agent said that Marco Polo Seatrade's trade debt is especially important because the trade creditors likely have maritime claims that could lead to the arrest of vessels by creditors not subject to the bankruptcy court's jurisdiction.

In addition, Credit Agricole said it is being offered security as adequate protection over assets in which it already has a security interest.

Marco Polo Seatrade, an Amsterdam-based vessel owner, filed for bankruptcy on July 29. The Chapter 11 case number is 11-13634.

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