In Re Mclean Industries, Inc.

68 B.R. 690 (1986)

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Nature of the Case

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Facts

P filed Chapter 11 on November 24, 1986. The Court issued an order, which restated the automatic stay provided by § 362(a) of the Code and not excepted by § 362(b) of the Code. P has remained in possession and continues to operate its trans-Pacific and western hemisphere cargo shipping services. On December 4, 1986, D commenced an in rem admiralty action in the Supreme Court of Hong Kong against P, pursuant to a Writ of Summons for the payment of $173,750 allegedly owed it for fuel oil delivered on board the AMERICAN UTAH, a vessel owned by P, in October 1986 in Khorfakkan Port, United Arab Emirates. On December 9, 1986, the Hong Kong court issued a warrant of arrest against the AMERICAN CALIFORNIA, also owned by P. As a result, this vessel has since been restrained from leaving Hong Kong harbor.

On December 8, 1986, P commenced an admiralty proceeding in the High Court of the Republic of Singapore against P as the owner of the AMERICAN OKLAHOMA. This proceeding was commenced to recover $69,500 allegedly owed by the debtor to P for fuel oil delivered on the vessel AMERICAN WASHINGTON on November 5, 1986, also in Khorfakkan Port. The Singapore court issued, on December 8, 1986, a warrant of arrest directed at the AMERICAN OKLAHOMA. D had full knowledge of P's filing of its reorganization petition and the resultant automatic stay. D sent a telex to P demanding payment against three ships. It stated that Chapter 11 procedures in the USA are not enforceable in a foreign jurisdiction and demanded immediate payment. P commenced this adversary proceeding on December 16, 1986. The Court issued a temporary restraining order against D preventing interference with the property of this estate in an effort to collect on prepetition debts. D is a subsidiary of a Liechtenstein corporation with its central office in Athens, Greece. D has principal offices in London, but its invoices state that it also has offices in Hong Kong, Norway, United Arab Emirates, and Basking Ridge, New Jersey. The New Jersey office is located in the same office as that of G.A.C. Shipping (North America) Ltd. ('GAC Shipping'), another D subsidiary. The local New Jersey office provides full booking, delivery arrangements and invoicing for bunker fuel. D disputes that the court has in personam jurisdiction.