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Leading marine, aviation and land fuel specialist World Fuel Services (WFS) is reported to have released the bulk carrier M/V Iyo Wind [pictured] after arresting it in Corpus Christi last week.

The vessel, which is currently chartered by Japanse firm Sanko Steamship Co., Ltd. (Sanko Line), was seized in Texas due to an unpaid bunker bill of $341,600 for fuel supplied to the ship in Texas last month.

The arrest took place despite a US court granting the company a temporary stay against its creditors last week after the company filed for temporary Chapter 15 bankruptcy protection on Monday July 2.

Documents show that the case was filed by WFS against the MV Iyo Wind at the Texas Southern District Court on July 5 - three days after Sanko Line filed for bankruptcy in Tokyo and three days after the company filed a petition for relief under Chapter 15 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

In a statement released on July 5, Sanko Line said: "Through its foreign representative, Sanko commenced the US Chapter 15 case to obtain recognition of the Japanese reorganisation proceedings and related relief, including the provisional application of the automatic stay under section 362 of the United States Bankruptcy Code which enjoins the commencement or continuation of creditor actions in the United States against Sanko or its property while the petition for recognition remains pending or as otherwise ordered by the US Bankruptcy Court. On the same day, the court granted the requested provisional relief and applied the stay referred to above.

"While Sanko wished to avoid the expense and inconvenience of formal proceedings during its rehabilitation process, the disruptive actions of certain creditors made this unrealistic.

"However, the stay now provided by the formal proceedings will stabilise the situation without Sanko being required to prefer certain creditors over others. This will allow Sanko the necessary breathing room to formulate and propose a plan of reorganisation that will allow Sanko to return to profitability and maximize value for creditors.

"In the meantime, Sanko remains prepared to take such other steps as it determines may be needed to ensure that the stay resulting from the Japanese proceedings is duly enforced wherever Sanko is located or has operations or property. Sanko can obtain such protection wherever it requires it to allow its operations to continue."