The oceans are proving stormy for real estate developer Vincent Chiara, who bought 10 cargo ships for US$65 million in 2017. His ship-owning partner is suing him for CA$3.9 million and accusing him of having “overfilled himself pockets” at his expense. Six years after the start of this sea voyage which was to last six months, the safety and mechanical problems of the boats made him bitterly regret his investment, financed by a loan from businessman Lino Saputo.
“Long story short, this adventure has been a chalice of disaster. Because hey, I don’t think that in the end, I’m going to take out my money, and Saputo, I’m going to owe them the loan,” summarizes Vincent Chiara, in an interview with La Presse.
On top of that, he must prepare his defense against the Montreal shipowner Talal Hallak, “the friend of a friend” whom he says he wanted to help by getting his hands on six “general cargo” ships and four boats. – tanks for chemical and petroleum products.
In 2017, Mr Hallak was trying to recover US$4.7 million owed to him by his former partner, a bankrupt Swiss merchant ship owner. “I started to advance him money to pay his lawyers,” Mr. Chiara says.
One day, the shipowner made him a proposition: his ex-partner’s ships were going to be liquidated. Why not buy them back at a low price?
“So he’s trying to convince me: we should buy the boats, it’s a deal, I’m going to operate them, we’re going to make money with them, we’re going to resell them… That means… he’s trying to convince me convinced me to buy the boats with him,” Mr. Chiara said with a sigh.
The rest came almost entirely from Jolina Capital, Lino Saputo’s holding company: a loan of around “sixty million” Americans at 4% interest. “I didn’t put in that much, but at the end of the day, I’m going to be responsible,” says Vincent Chiara. If I manage to sell the boats for 50 million, I’ll write a check for 10 million! »
The promoter is categorical: in 2017, he “immediately” put the ships up for sale by contacting a broker in London. The plan was to exploit them while waiting to find the right price.
But as of November 2018, Talal Hallak and Vincent Chiara’s companies had still not resold any boats. And the fleet was multiplying problems on all oceans: since 2017, six of the ships have remained detained in ports, from Salaberry-de-Valleyfield to China, for security or mechanical problems.
The developer then removed responsibility for managing the boats from Mr. Hallak and gave it to another company.
The problems continued, but ships finally found buyers. “I had the impression that I was motivated to sell, but that he was less motivated,” says the promoter.
Mr. Hallak’s company, General MPP Carriers Ltd. claims in its suit that it “never received a single dollar in return of capital and/or profit sharing” after the sale of the vessels. According to the company, its agreement provided that it would receive 15% of the operating income of the boats or the profits from their resale, in exchange for the US 2.5 million invested and its management work.
Last month, General MPP filed a C$3.3 million lawsuit against Vincent Chiara’s companies, accusing them of “abusive actions.” Another company of the shipowner is also claiming ship management fees of $600,600. In total, Mr. Hallak’s companies therefore claim 3.9 million from those of Mr. Chiara.
General MPP claims that its rights “were violated throughout the period of operation of the vessels.”
Contacted by La Presse, Talal Hallak refuses to comment on this case because she is in court.
Today, Vincent Chiara’s companies still own three tankers, including the Emanuele S, which bears the baptismal name of Lino Saputo. Another is named Mirella S, in honor of his wife. An idea from Mr. Chiara.
Operating ships turns out to be a lot less fun. “I regularly hear horror stories,” says Mr. Chiara straight away.
The Emanuele S, which can transport gasoline, sulfuric acid or other chemicals, was held at dock in Salaberry-de-Valleyfield and Port-Alfred in 2017 and 2020. At issue , numerous deficiencies detected on board, such as damaged or even completely “inoperative” lifeboats and fire-fighting ventilation valves.
One of the cargo ships, the Jennifer H, even went out of control in the English Channel in March 2018 following damage to the main engine. After the emergency intervention of a French tugboat, the mechanics managed to get the boat underway again, but it quickly broke down again. Towed to Germany, it remained there for 297 days, according to the website of Equasis, a European organization which aims to promote the quality of merchant shipping around the world.
Vincent Chiara has no shortage of anecdotes about ship problems. “One day they forgot to tie down the cargo during the trip. It moved, then it broke. We had an insurance claim, for I don’t know how many millions, the insurer didn’t want to pay… I said to myself: tab…, what did I get myself into? »
But the Montreal promoter insists: these problems are not his responsibility, as owner of the ships, he says. “We don’t operate the boats, we give them to operators who rent the boats. »
