A dispute with the company's lender over mortgage payments has caused Coastal Link Ferries (CLF) to halt its regular runs from Bowen Island and West Vancouver to downtown Vancouver.
CLF captain Ihab Shaker, who had been trying to extend his runs to the Sunshine Coast, said his private lender, a numbered company, obtained a court order to seize the Coastal Runner last week while he was attempting to negotiate a loan extension and arrange for a new commercial loan.
Graham Walker, the lawyer representing the lender, said the company has serious concerns about whether it can collect the money it is owed.
"I can say as a matter of public record, it is owed in excess of $650,000, so this is not an insignificant matter for it to have to grapple with," he said. "Our position is the mortgage is in default. This was a necessary measure to take in order to protect the mortgagee's investment in the vessel."
Shaker denied ever failing to make payments.
"We had an agreement for one year. During that year, I paid in full, on time. I was never, ever short or late," he said.
Shaker said he does not know what will happen to CLF in the meantime or if he will be able to resume runs or extend trips to the Sunshine Coast. He added that it was a "no win" situation to seize the boat while it was fully booked during the Olympics.
Walker said the two most likely courses of action now are either negotiation or selling the boat.
