Yes, that’s right. Thanks.
So, what’s going on now with TAL?
Everyone here already knows that Geysir sucks, and Transatlantic sucks, and TAL sucks. That’s not news. Everyone here has known that for years. What is different this time?
Don’t’ be a tease. We want to hear the details. How did it take Geysir a month to cross the Atlantic? What was “horrific” about the voyage? Are you still unpaid ? Have you contacted MEBA for help? What is MEBA doing for you? Has the USCG taken any action? Etc.?
What’s the latest on the Transatlantic in Long Beach?
Some of us have been around long enough that we have been through similar experiences with other companies. We know what it’s like. You have our sympathies. We wish you the best.
Unconfirmed word is that the Geysir was arrested today.
well there it is…a gyppo two pot pissed stained company finally meets its reward. there will be more warrants filed now and unless Gudmundor Kjaernested has some secret cash source he can call upon, TAL should be as good as dead and buried. The ships will ultimately be auctioned off and the pittance they get from buyers will not even get close to paying off the seamen and secured creditors. They’ll have to take what they can get from the Court when it decides how the proceeds are parceled out.
let this be a lesson as to how NOT to form and operate a US flagged shipping company. Hopefully Schuyler Line can get some more work now to fill the vacuum. They are what TAL should have been.
I am very pleased to see that MEBA is actually representing its members/pledges.
It probably won’t be too long before some vendor arrests the Transatlantic in Long Beach and MEBA piles on.
TAL will probably file for Chapter 11 to stay the lawsuits, continue to operate, and cram down the debts. Post-bankruptcy creditors can get priority on repayment which may encourage the owners or others to lend money to the company to keep it running. Management will want to continue to operate to keep paying itself as long as possible.
TAL may be close to dead , or this may just be a bump in the road for it.
TAL has $18 million in valuable government contracts. They seem to know how to really milk Uncle Sam’s sugar tit. This may be a good opportunity for someone to buy out the current owners and turn the company around with better ships and management.
That’s awesome. I hope they arrest the Transatlantic before they scram to Mexico.
Geysir is arrested in Jacksonville until they pay unsettled bills. They owe the crew 2 to 3 pay periods. With many pending 835s. There is a meba lawsuit in the courts for crew not being paid. The cargo Might be pulled.
Geysir is officially for sale in Jacksonville
It’s probably been listed for sale for a while now. We know for a fact that the Transatlantic has been on broker sites for a while.
Now there is literally no sane person on the planet who will buy a ship with liens recorded against it. Ships in distress end up being auctioned by the US Marshall with all liens removed. The trouble is that it is extremely unlikely that a ship in the condition of the GEYSIR would bring even a $100k bid which will be far less than all the claims against the vessel. Hopefully the crew comes out close to whole but nobody else will see a penny.
What needs to happen is a criminal investigation of where all the millions collected by TAL have gone over the years however I doubt there would ever be one. However I very much doubt Gudmundor will ever need to do anything again in his pathetic lifd yet still live quite nicely. I wouldn’t be surprised one bit if this was all planned out in advance!
Sooooo you’re saying this could be C. Captain Lines, adding another vessel to his fleet!?
As a US built Jones Act vessel with a small crew of only about a dozen that is capable of getting and performing government contracts, Geysir has value. It’s worth more than $100,000 for scrap. If still serviceable, it worth a lot more. If the ship were tied up in litigation for a couple of years , it would not sell for much at auction. If the ship stays operational, it has value even at promptly held auction.
I would not worry too much about the recorded liens, its the inchoate (unrecorded) liens that would scare me. A US Marshal’s auction under Admiralty law sweeps the bottom clean of all liens. That’s the way I’d want to buy. A bankruptcy court auction only clears the liens and claims that are before the court. Potential future claims, such as seamens injury claims that occurred in the past but have not yet been filed, would be my concern. A bankruptcy auction would not prevent those claims from being filed against the ship in the future.
If TAL has $18 million in pending government contracts , those are its most valuable assets. The second most valuable asset is the ability to get such contracts. I’d want to buy the entire company for 10 cents on a dollar in a bankruptcy sale. The value of the ships doesnt matter much.
No sir…my vessels may be old and a bit worn but I have been aboard the GEYSIR and a more filthy or decrepid ship I have yet to experience. She is the very definition of a manifestly unseaworthy ship. There was not one single redeeming quality in her. Everything, but everything needed to be condemned and if you tried to sink her to be a reef, the sea would vomit her back to the surface.
Now that’s funny!
She was a good ship, always looked out for her crew. Too bad she was used beyond her capacity (not built to sail across The Pond) and her owner never put the M&R in like he should have. Pompous prick.
Buy the company for the contracts and get rid of the old ships. Buy a couple of European built ships under 5 years old for less than $5 million a piece and reflag them US for the US military cargo going to foreign lands trade.
If there is enough military cargo being transported in the Jones Act trade to justify it, convert a couple of OSVs to serve that trade. The military pays such high freight rates that there is no need to be efficient in order to earn a healthy profit.
Department of Nit Picking: You can’t re-flag a foreign vessel to U.S. registry, unless that vessel has been seized by the U.S. government and sold at auction.
first, there seems to be some big question if that recent award announced by TRANSCOM was in fact an obligation by them to TAL. If it is a true contractual obligation then why allow your two ships to get arrested and yourself get the black eye? HELL, if I knew $18M was coming, I’d certainly be able to use that to get my hands on some money to keep operating until the checks started coming in.
second, if TAL is done for, why buy them and their liabilities when you can just let them crash and then swoop in to pick up the contracts? If I was Schuyler Line, I’d be looking for a couple of little ships and making some plans to reflag them US.
none of the cargoes TAL carry(ied) for TRANSCOM were ever Jones Act protected and the GAYSIR does not have a coastwise endorsement. It was built US but was flagged foreign for a time so when it did come back to US flag was treated just as foreign built.
of course you can but you will not get coastwise trade privileges
for a vessel not ordinarily entitled to a coastwise trade endorsement there are the following ways to get it
Act of Congress (most often as a rider on the USCG Authorization Bill each year)
Marshall’s Sale after being seized for violating laws of the USA (vis. any kind of smuggling, illegal fishing in the US 200mi limit, war prize, but not a sale due to insolvency or court award because no laws are violated)
if a wrecked, burned, etc… in US waters and then repaired in a US yard where 3x the CTL value is spent then application for a coastwise endorsement can be made (called the “Wrecked Vessel Act”
very likely the POTUS can also award CWT to a vessel if deemed in the interests of the nation