Ocean Jewel owners file for bankruptcy <HR SIZE=1>Ocean Jewel owners file for bankruptcy
The filing may make it more difficult for St. Petersburg to collect more than $72,000 owed by the company.
By CARRIE JOHNSON, Times Staff Writer
Published August 1, 2005
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ST. PETERSBURG - After months of mishaps and controversy, the owners of the Ocean Jewel filed for Chapter 11 bankruptcy protection Monday.
The move will allow the casino ship to continue to operate out of John's Pass while the company is restructured and creditors are repaid.
It also may make it more difficult for the city of St. Petersburg to collect the more than $72,000 the company owes, said Chief Assistant City Attorney Mark Winn.
Dennis Shepard, CEO of Titan Cruises, which owns the 450-foot vessel, said he decided to file for bankruptcy after a couple of smaller vendors threatened to file liens against the ship.
If the vendors followed through, the ship would have to cease operations for about two weeks until the liens could be resolved, which would lead to a further loss of revenue, Shepard said.
"It's kind of a spiraling effect," he said.
Under Chapter 11 bankruptcy, representatives from the U.S. Justice Department appoint at least one committee to represent the interests of creditors and stockholders to help the company develop a plan of reorganization to get out of debt.
The plan must be accepted by the creditors, bondholders and stockholders and be confirmed by the court.
The company cannot be sued while it is in bankruptcy.
The 2,200-passenger Ocean Jewel, which anchors in international waters where gambling is permitted, has been plagued by problems since it began operating in October.
Customers have been kept aboard the 450-foot casino ship for hours when bad weather has hampered shuttle access to the ship. Two of its shuttles struck bridge barriers at John's Pass at least four times. And the ship closed its operations from the port of St. Petersburg last month.
Shepard said he was confident the ship's new business plan would be more successful. The ship had about 24,000 passengers in July, the highest so far for any month. He said closing down the port of St. Petersburg also helped cut costs. About 50 employees were fired when the port operation closed.
Walt Miller, the city's port director, said the ship's owners owe the city about $72,000. But he noted the company paid a $108,000 deposit, which could be used to defray costs.
But Winn said the bankruptcy judge may not allow St. Petersburg to claim the deposit.
"The bankruptcy laws may impact our ability to collect it," Winn said. "It kind of depends on how the bankruptcy court characterizes the payment."
-- Carrie Johnson can be reached at 727 892-2273 or
cjohnson@sptimes.com