Bank of New Zealand (Security Trustee) v The Vessel MY "Island Escape" - [2022] FCA 1230, Federal Court of Australia (Feutrill J), 17 October 2022

Admiralty - Sale of ship - Cruise vessel - Application for judicial sale of ship pendente lite without valuation - No appearance by defendant - Caveats against release - Orders made for judicial sale with provision for valuation - Form of undertaking under rule 69 of the Admiralty Rules 1988 (Cth) - Method of sale to be determined by Admiralty Marshal - Admiralty Rules 1988 (Cth), rules 23, 23(1), 69, 69(4)

The claimant Bank, acting as security trustee for the Bank of New Zealand and Export Finance Norway, commenced proceedings in rem against the luxury cruise ship Island Escape on 18 August 2022. The claim was based on default by the defendant owners on repayments under financing arrangements. The vessel was arrested at Broome the following day. On 22 August 2022 OSM Offshore (the vessel's managers), and on 24 August 2022 Sealanes (the supplier of provisions), each filed a caveat against release of the ship from arrest.