The combined effects of the coronavirus pandemic and falling oil prices have resulted in a surge of US bankruptcy petitions. Although the nation’s ports remain open for business, many retail and energy businesses have been unable to overcome the volatile economic climate and are seeking relief in US Bankruptcy Courts.

In our previous update concerning OW Bunker litigation in the United States, we discussed orders issued by the United States District Court for the Eastern District of Louisiana in which the court held that a physical supplier of bunkers did not have an enforceable maritime lien against a vessel.  Valero Marketing and Supply Co. v. M/V ALMI SUN, No. 14 Civ. 2712 (NJB) (E.D. La. decided Dec. 28, 2015 and Feb.

Physical Supplier Denied Maritime Lien

A federal court in the United States recently held that a physical supplier of bunkers was not entitled to a maritime lien against a vessel.  Valero Marketing and Supply Co. v. M/V ALMI SUN, No. 14 Civ. 2712 (NJB) (E.D. La. decided Dec. 28, 2015 and Feb. 8, 2016).  The Order was the first to apply United States law and directly address the issue in the context of O.W. Bunker's bankruptcies.