Executive Director Chris Lytle says the Port of Oakland is “deeply disappointed” with the action yesterday by Outer Harbor Terminal LLC, a joint venture between Ports America and Terminal Investment Ltd.
Outer Harbor Terminal LLC filed for reorganization under Chapter 11 of the federal bankruptcy code Monday.
The joint venture between Ports America and Terminal Investment Ltd., a terminal company affiliated with ocean carrier Mediterranean Shipping Co., said last month it would cease operations in the Port of Oakland at the end of March.
In its petition filed in U.S. Federal Bankruptcy Court in Wilmington, Del., Outer Harbor said estimated liabilities were between $100 million and $500 million.
The company said there were “contingent, unliquidated, disputed” unsecured claims against it from the Port of Oakland for the terminal concession it has in the port and from the City of Oakland for transfer taxes.
But it did not say what the size of those claims are. The next 18 largest unsecured creditors have claims ranging from $63,337 to $4,732.
Outer Harbor announced Jan. 19 that it would pull out of the Northern California port, where it operates berths 20-26.
Today, spokeswoman Nancy Heffernan said OHT “decided to file for Chapter 11 protection in order to continue the operational wind down and transition out of the Port of Oakland. OHT felt this decision was in the best interest to protect creditors and to continue with an orderly wind down.
“The action also enables OHT to keep ensuring our customers receive the quality service they are used to without disruption,” she added.
The company said in a statement “conversations between OHT and all stakeholders will continue while OHT implements the wind down through March 31.”
“We’re deeply disappointed in the action today by Ports America,” Port of Oakland Executive Director Chris Lytle said of the news. “They made a decision to close their business in Oakland. Since then, we’ve been negotiating with them in good faith for a smooth, orderly transition that protects the interests of shipping lines, cargo owners and others who depend on the terminal.
“It’s a shame they’ve taken this step.”
The port said it will “work to ensure the terminal’s customers aren’t left adrift by the decision.”
“We’ll find a home for all of the cargo that was going to Ports America Outer Harbor,” said Lytle. “We’ll implement measures to improve cargo-handling processes and make this transition successful.”
Mike Zampa, a spokesman for the port, could not quantify how much money the port is owed.
“We are still concentrating on the customers, on cargo owners, the shipping lines, the truckers, all those who are impacted,” he said. “If we can keep talking with them about a smooth and effective transition we will be doing that.”
Joint terminal venture at Port of Oakland files Chapter 11 bankruptcy
