Marco Polo Seatrade pulls contempt motion, reaches release agreement

By Caroline Salls

Pittsburgh, Sept. 26 - Marco Polo Seatrade BV has withdrawn its motion for contempt sanctions against Credit Agricole Corporate and Investment Bank, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said it withdrew the motion because it reached a conditional release agreement with Credit Agricole. Marco Polo Seatrade also said it could refile the motion if Credit Agricole breaches the release agreement.

As previously reported, the company said in the sanctions motion that Credit Agricole arrested its M/T Montiron tanker vessel in July and refuses to cease control of the vessel.

Marco Polo Seatrade said Credit Agricole will not cease its violation of the automatic stay unless the court awards damages for the past and ongoing violation of the stay.

If Credit Agricole does not cease its violation, the company said, "The debtors' chances of a successful reorganization will be severely jeopardized by losing the revenue associated with one of the main vessels in their fleet."

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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