MSC Of Switzerland May Purchase Global Ports Holding Of Turkey- Transaction Could Expose One To Lawsuit And The Other To More Assets For Plaintiffs To Seek In Libertad Act Title III Lawsuits.

Geneva, Switzerland-based Mediterranean Shipping Company (MSC); 2021 revenue approximately US$28.2 billion) is reported to be in discussions to purchase a majority shareholding in Istanbul, Turkey-based Global Ports Holding (2021 revenue approximately US$79.4 million).  NOTE: On 12 July 2022, MSC reported that it had terminated discussions with Global Ports Holding. No reasons were provided.

Global Ports Holding (2018 revenues exceeded US$124 million), which also has a registered office in London, United Kingdom, and is listed on the London Stock Exchange (LSE) could now be a defendant in a lawsuit relating to Title III of the Libertad Act of 1996 if Global Ports Holdings were to become a wholly-owned or partly-owned subsidiary of MSC.  

Global Ports Holding has “a management agreement in Cuba to advise and consult on cruise port management best practice. The cruise terminal is in the Sierra Maestra complex, in San Francisco pier, with a current capacity for two ships.” 

The Trump-Pence Administration (2017-2021) on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

Four separate lawsuits were filed on 2 May 2019 in United States District Court (Southern District of Florida- Miami Division) by Havana Docks Corporation against Carnival Corporation & plc; Royal Caribbean Cruise Lines; Norwegian Cruise Line Holding; and MSC Cruises SA Co and MSC Cruises (USA) Inc. 

The lawsuits claim that the four cruise lines were using (“trafficking”) assets upon which there is a certified claim (the passenger port located in the city of Havana) and the certified claimant has not received compensation from the Republic of Cuba.    

If MSC purchases a controlling interest in or absorbs completely Global Ports Holding, then Global Ports Holding could become a defendant in a Libertad Act Title III lawsuit filed by Havana Docks Corporation as assets connected to Global Ports Holding may become less problematic for a court to confirm jurisdiction due to the connectively with MSC which has operations in the United States and assets for plaintiffs to access to satisfy court verdicts and judgements. 

If MSC purchases a controlling interest in or absorbs completely Global Ports Holding, there may become additional assets controlled by MSC that plaintiffs in Libertad Act Title III lawsuits, for example Havana Docks Corporation and Odette Blanco De Fernandez, may seek to access to satisfy court verdicts and judgements if courts rule favorably in jurisdiction questions. 

Global Ports Holding From Turkey Could Be Next To Be Sued Using Title III; President Erdogan Will React Harshly- June 05, 2019 

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON BLANCO, JR.; MAGDELENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE; Plaintiffs, v. MSC MEDITERRANEAN SHIPPING COMPANY SA. [1:21-cv-23400; Florida Southern District]. Clerk Default Judgement Entered By Court On 1/25/22.
Horr, Novak & Skipp, P.A. (plaintiff)
Law Offices Of John S. Gaebe P.A. (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)
Arnold & Porter Kaye Scholer LLP (defendant)

LINK To Libertad Act Lawsuit Filing Statistics

The Maritime Executive
Fort Lauderdale, Florida
15 June 2022

MSC in Discussions to Buy Cruise Port Operator Global Ports
GPH operates cruise ports including Antigua in the Caribbean (file photo)

Global Ports Holding, an operator primarily of cruise ports around the world as well as some container terminals, confirmed media reports that it has been approached for takeover discussions by a division of MSC Mediterranean Shipping Company. The company said that its primary shareholder, a company controlled by Turkish businessman Mehmet Kutman, is in discussions with MSC. 

In a regulatory filing in London, the company reported they are exploring a potential cash offer for all of its shares. The value of the beleaguered company’s shares jumped nearly 20 percent based on the rumors prior to the regulatory filing. Kutman owns 62 percent of the shares outstanding in Global Ports. 

Founded in 2004, the company today promotes itself as the world’s largest cruise port operator. They currently have agreements for 26 ports in 14 countries ranging from the Mediterranean where they have a 29 percent market share, to Northern Europe, the Caribbean, and Asia. In 2022, they signed concessions for the port operations in Tarragona, Spain and Crotone, Italy as they work to rebound from the impact of the pandemic which caused strong declines in cruise and ferry passenger volumes. The company recently said it had returned to profitability after a two-year downturn.  Global Ports created a unique market position focusing on cruise ports, and positioning itself as the world’s leading cruise port brand, with an integrated network of cruise ports serving cruise ships, ferries, yachts, and mega-yachts. The company reports handling 1.5 million passengers annually with over 5,400 port calls. 

“These deliberations are at a preliminary stage and no decisions with respect to an offer have been made,” the company wrote in the filing. “There can be no certainty that an offer might ultimately be made for the company nor as to the terms on which any offer might be made.”  Under the rules, MSC now has till July 13 to “either announce a firm intention to make an offer,” or the company can announce that they do not intend to make an offer for GPH. The deadline, however, could be extended with the consent of the takeover panel. 

In addition to being the world’s largest container shipping line, MSC also operates a growing international cruise brand that is becoming one of the largest in the world. The controlling family of MSC recently also agreed to make a significant financial investment in the financially troubled Italian ferry operator Moby Lines. It was part of a restructuring of the company’s debt from the acquisition of another ferry operator Tirrenia di Navigazione nearly a decade ago. 

MSC has also been seeking to grow the logistics portion of its business. In April, MSC agreed to acquire the logistics operations of Bolloré Group, which operates in 47 African countries with 16 container terminals. MSC beat out other major shipping companies to acquire the assets of Bolloré in a deal valued at $6.4 billion. MSC reported it would strengthen its commitment to Africa and expand access for the continent in the global markets.