Judge approves sale of casino ship to pay debts

Wednesday, Sept. 12, 2001 | 9:56 a.m.

GALVESTON, Texas -- A federal judge has approved a request to sell an ill-fated casino ship to pay debts owed by the vessel's owners.

The Talisman began sailing from Galveston's port into international waters April 6.

But just more than a month later, financial problems shut it down, leaving almost 500 employees without jobs.

American V Ships, which contracted with Talisman to provide a crew and manage the vessel's operation, had the ship seized on July 19 to secure a debt of approximately $100,000 it said it is owed.

U.S. District Judge Samuel Kent granted American V Ships' request to sell the casino ship to pay maritime creditors.

Talisman officials said that if all criteria are met, the soonest a sale could take place is Nov. 20.

"It's a very long and extended process," Talisman partner Byron Georgiou told The Galveston County Daily News for its Saturday editions. "It would result in the ship being sold if nothing was resolved with the maritime creditors between now and then, but the odds of that are very long."

Georgiou said Talisman intends to work out a plan with creditors and to continue to pursue a refinancing plan that's been in the works since the ship stopped sailing.

"It's looking very good," he said.

Talisman filed a counter suit alleging American V Ships was liable for damages due to their ineptitude in managing the ship.