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Old March 23rd, 2005, 04:37 PM
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Default Queen Mary Update

Operators of Queen Mary file for bankruptcy

LONG BEACH, Calif. -- Queen’s Seaport Development Inc. (QSDI), which leases the Queen Mary from the city of Long Beach, Calif., filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court Central District of California in Los Angeles on March 15.

The company filed a day before a deadline set by the city government for QSDI to pay $3.2 million in back rent dating back to 2000. QSDI has been withholding money based on a disagreement over terms of its lease with the city. The company also owes creditors an additional $389,000.

The filing allows the company to continue operating the ship while the dispute is ongoing.

The Queen Mary is now a stationary vessel docked at the south end of the 710 Freeway in Long Beach and is used as a hotel, restaurant and special events complex.

Paul

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