Owners of Ex-Bouchard ATB Fleet Tussle in Court, Sidelining Vessels
Pennantia, the JV company that acquired eight ATBs out of the former Bouchard fleet, has paused its operations amidst a legal fight between its majority owner and its operator. One of the vessels has been arrested in Panama on a lien filed by the operator, and another of the idled ATBs may have attracted Coast Guard attention over manning levels, according to court filings.
The shipowning JV, Pennantia, is majority-owned by Contrarian Capital, with minority owner Rose Cay handling maritime operations under contract (the Rose Cay name is the fleet's operating brand). Rose Cay alleges that Pennantia - controlled by Contrarian Capital - has stopped paying in full for operating expenses, and it has suspended shipmanagement services while demanding repayment. In response, Pennantia sued Rose Cay and accused it of trying to shut down operations on a false pretext in order to scuttle the pending sale of the ATB fleet. Both parties deny each others' allegations.
The fallout is a new speed bump for the remnants of the Bouchard empire. The Pennantia partnership bought eight ATBs from the former Bouchard Transportation fleet when Bouchard was dissolved and its assets split up in 2021. Pennantia's acquisition includes younger Jones Act vessels, ranging from 4,000-horsepower tugs up to the tanker-sized ex-Kim M. Bouchard / RCM 270.
After purchase, the fleet was initially operated by Foss under contract, but Rose Cay took over management in 2022. At that time, it took crewing and operations under its own umbrella and subcontracted these tasks to a new subsidiary, named Dove Cay LLC. In December 2024, Rose Cay claimed that Pennantia owed about $9.5 million in unpaid expenses and interest to Dove Cay, and in February it escalated with a declaration that Pennantia was in default. (Pennantia denies these claims.)
Dove Cay then filed liens against the entire Pennantia fleet totaling about $29 million, including $13 million for repayment of a loan. In response, Pennantia called Rose Cay's claims "fabricated" and last month it filed for a court injunction to prevent Rose Cay and Dove Cay from idling the fleet or pursuing their maritime liens.
In an order signed on August 18, Judge Sidney H. Stein denied Pennantia's motion for an injunction in the case, allowing Dove Cay to pursue its liens against the vessels while litigation continues. The judge also allowed Rose Cay to terminate its shipmanagement contract with Pennantia, on the understanding that minimum safety and manning requirements would continue to be met.
The two parties are in mediation and have discussed possible terms for a settlement; in the meantime, AIS data shows that the firm's active tugs are all at berth or at anchor in New York, Panama and Port Arthur.
Top image: Corey Seeman / CC BY NC SA 2.0