Second Circuit Affirms Summary Judgment for LPGM Client

In a case handled by LPGM Partner David Potter, the Second Circuit affirmed a decision from the Southern District of New York in Aegean Bunkering (USA) LLC v. M/T Amazon et al., No. 16-4065, granting summary judgment to LPGM client ING Bank N.V. and its co-defendants.  ING Bank was the Security Agent under a $700,000,000 Multicurrency Revolving Borrowing Base Facilities Agreement and Security Agreement with O.W. Bunker Group, the world’s largest bunker fuel supplier at the time.  When OW Bunker went into insolvency, ING Bank sought to enforce its security interest in an OW Bunker receivable for bunker fuel and the subcontractor physical supplier of the fuel arrested the vessel to enforce its alleged maritime lien on the same debt.  The vessel owner commenced an interpleader action and deposited the disputed funds into court.  In affirming judgment for ING Bank and its co-defendants, the Second Circuit held that the physical supplier was not entitled to a maritime lien because it did not supply the fuel “on the order of the owner or a person authorized by the owner.”  A copy of the Summary Order can be found here.

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