This is considered a preferred outcome for both parties, rather than liquidating the company.
Following a hearing of the Pacific Schooners Ltd petition matter on Friday, the case has been adjourned until November 9.
This date was fixed by the Chief Justice to give the PSL’s principals time to advance a proposed compromise deal for creditors. It will also give time to put in place plans and assurances for the Ports Authority as to how the ship will be moved from Avatiu harbour in the event of a cyclone or some other natural disaster.
There are fears that if the vessel sank in the harbour during a cyclone, that it could block access for container ships and cause economic harm to the Cook Islands.
Courts documents filed on Friday outlined a notice of intention by the Ports Authority in support of a petition on behalf of PSL’s creditors.
The proceedings were first delivered in the form of a petition in January 2017, and issued by Apex Agencies trading as Toa Petroleum and Porter Group Holdings Ltd trading as Toa Gas, to wind up the PSL.
The petition was issued on the grounds that Pacific Schooners had been served with a notice under the Companies Act 1955 and had failed to comply with the notice by paying a debt of $55,472.02, for the supply of fuel to the ship.
The vessel was involved in more controversy recently when it collided with Taio Shipping vessel Lady Moana in the harbour. The collision happened when the ship re-entered the port after its trial voyage out to sea.
Stories in CINews recently have highlighted concerns that the Tiare Taporo has problems manoeuvring in the close confirms of Avatiu wharf.
Cyclone season officially starts today, and although the only crew able to move the vessel is located in New Zealand, PSL will satisfy the Ports Authority’s requirements as long as they can arrive in the Rarotonga within three days warning of a storm so they can move the vessel from the harbour.