Northline Seafoods has successfully negotiated a bond deal that will see courts release custody of its freezer barge Hannah.
According to court documents, Northline Seafoods – through its subsidiary Sayak Logistics – has agreed to file a special bond of USD 1.378 million (EUR 1.242 million) with the clerk of court for the U.S. District Court for the Western District of Washington. The move stays the order of arrest on the Hannah, freeing Northline to use the vessel in the upcoming Bristol Bay salmon season.
The move comes after a U.S. district court judge issued a warrant for the arrest of the Hannah after one of the contractors on the vessel filed legal claims against Northline for work it said was never compensated for.
According to court documents, Leo’s Welding performed nearly USD 2 million (EUR 1.8 million) of work for Northline on its vessel, which the company claims it was never compensated for.
Northline said that a vessel fire that caused it to run at reduced capacity led the company to take a financial hit in 2024 and said in a court filing that Leo’s was not fully paid, “along with other vendors.” However, it had reached accommodations with most of the other vendors except for Leo’s Welding and that the amount owed to Leo’s is in dispute.
The company also filed an opposition to the arrest, which it said placed it in a “very difficult position.”
“The timing of the present action and potential arrest implicates Sayak’s [Northline’s] plans for the vessel this year, as the vessel is presently being readied for service and needs to be underway in the next four to six weeks to be ready for the upcoming season,” the company said in a court filing. “Its impact on the vessel’s ability to operate will be severe and potentially fatal.”
The company also argued that if the arrest forced the company to forgo the salmon season it could likely cause the lender that gave it a USD 40 million (EUR 36.1 million) preferred marine mortgage to foreclose – which would have likely wiped out Leo’s lien and any others that came after the mortgage filing.
The arrest of the vessel has now been avoided thanks to the bond, which according to court documents was filed through Travelers Casualty and Surety Company.
In a post on its Facebook page, Northline Seafoods said 18 April that the Hannah was already in the process of being moved to gear up for the 2025 Bristol Bay salmon season.
