US court rejects bid by owner to keep Equanimity in Indonesia

A US district court in California has rejected an ex parte application by the company that owns the  Equanimity to keep the 1MDB-linked luxury vessel in Indonesia pending a sale.

District judge Dale Fischer, in his written judgement sighted by Malaysiakini, said Equanimity (Cayman) Ltd "did not establish that any value could be preserved by keeping the superyacht in Indonesia," as opposed to the vessel being moved to US territory.

"The court sees no reason to force the US to keep the ship in Indonesia at the risk of some turn of events that undermines the asset seizure that was previously ordered by this court," he wrote in the judgement filed on April 2.

Fischer also said the claimants did not establish if all of the Equanimity's crew needed to be on board to keep it in good shape.

He said the US government's proposal to man the ship with a "blended crew" was reasonable, and maintaining some of the existing Equanimity crew "should avoid most potential problems."

However, the judge did find merit in the company's concerns that the vessel might be understaffed.

"While the court doubts that the government has any interest in an undermanned vessel, the government is ordered to confer in good faith with the current captain, or senior officer present if the captain has been relieved, of the Equanimity to determine the necessary crew composition.

"Claimants are ordered not to attempt to influence the captain’s or senior officer’s professional opinion on this issue," he ruled.

Await outcome of court case

The US$250 million superyacht linked to businessperson Low Taek Jho, or Jho Low, is among several assets being sought by the DOJ for allegedly being acquired using funds it says were misappropriated from Malaysian state fund 1MDB.

Low has denied any wrongdoing, while 1MDB insists that all its money is accounted for.

The vessel was seized in Bali on Feb 28 in a joint operation between the US Federal Bureau of Investigation and Indonesian authorities.

Equanimity (Cayman) Ltd is challenging in Indonesian courts the procedures surrounding the seizure by the authorities in charge.

The company said it will await the outcome of the Indonesian court case before commenting further on the US court case.

"Claimants note that the US government has already conceded that it will not take any action until the Indonesian proceedings are concluded.

"Claimants will, therefore, await the outcome of those proceedings before commenting further on the ruling from California," it said in a statement. - Mkini