OTTAWA - Canada's Department of National Defense is paying US$650,000 in an out-of-court settlement to a Montreal logistics company, ending the saga of the freighter GTS Katie, which it seized at sea last August. The department said it was paying US$650,000 of the US$1.34 million contract it had with SDV Logistics Canada Ltd.
Canadian military personnel landed on the GTS Katie from helicopters off Newfoundland, where its owner, Third Ocean Marine Navigation of Annapolis, Md., had ordered it to stay in a dispute with shipping subcontractor Andromeda Navigation Inc. of Montreal. The Katie was bringing back US$155 million worth of military equipment from peacekeeping duties in Kosovo.SDV Logistics had subcontracted the carriage of the goods to Andromeda, which in turn subcontracted it to Third Ocean Marine. After a 16-day standoff, commandos seized the ship and it sailed, and ultimately was towed, from the Atlantic to the St. Lawrence River and Montreal. SDV Logistics had sued the military and the military had countersued.
'We paid for what we felt were the services rendered,' Col. Jacques Morency, director of logistics business management for the department, said in a statement.
Third Ocean Marine lost the GTS Katie and it was sold last month for about US$1.3 million). At least four mortgages are known to be held on it, by Norwegian, German and Swiss shipping companies.
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