Nova Star ferry to be freed from Portland seizure order

The Nova Star ferry will be released from a seizure order Tuesday at 12 a.m. ET, says a lawyer representing the City of Portland.

Charles Remmel told CBC News the owner of the Nova Star, Singapore-based ST Marine, has paid many of the creditor claims that were made against the ferry's operator, Nova Star Cruises.

An order issued on Oct. 30 by the U.S. District Court in Portland allowed the U.S. Marshals Service to take possession of the ship because Nova Star Cruises owed a Portland company about $200,000.Others companies soon made claims against the vessel.

Remmelsaysthe outstanding claims now amount toabout $500,000 and said ST Marine had to post a bond of $750,000 guaranteeing the outstanding claims would be paid off.

He said one of the city's two claims against the vessel has been paid, but the outstanding money will be covered by the bond.

In mid-November, Nova Star Cruises said the Nova Scotia government still owed it $2 million, a claim the province denies.The company said this compromised its ability to pay its bills.

In its two years of operation, the Nova Scotia government gave $39.5 million to the operators of the Nova Star.

The ship had about 110,000 passengers, short of its two-year goal of 180,000.About 51,000 people took the ferry this year.