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November 3, 2015

Creditors say Nova Star owes at least $800,000

Nova Star Cruises, the Portland-to-Nova Scotia ferry operator for the last two years, reportedly owes Maine businesses and other creditors at least $800,000.

The Portland Press Herald reported that on top of the Portland Pilots’ $200,000 claim filed in federal court last week, a fuel supplier filed a complaint Sunday seeking payment of nearly $500,000 for bunker fuel.

Also, the city of Portland says the company owes it nearly $100,000 for unpaid rent and fees; A.L. Griffin Ship Chandlers in South Portland says it’s owed $13,000; and WMTW-TV in Portland says it’s owed an undisclosed amount of money for commercials, the Press Herald reported.

On Friday, the U.S. District Court in Portland ordered that the Nova Star ferry be seized for unpaid debts. The day before, Nova Scotia announced it dropped Nova Star Cruises as the operator of the Portland-to-Yarmouth, Nova Scotia ferry and was negotiating with the former operator of the Cat ferry instead.

In Nova Star Cruises’ two seasons operating the route, it missed passenger-count expectations and received $31.5 million ($41.5 million Canadian) in subsidies from Nova Scotia.

A spokesman for Nova Star Cruises, Dennis Bailey, told the Press Herald that the company has paid most of its suppliers’ costs and plans to pay all of them.

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