DSR-SENATOR IN DISPUTE OVER PAYMENT OF TACA FINES

DSR-SENATOR IN DISPUTE OVER PAYMENT OF TACA FINES

   DSR-Senator is embroiled in a legal dispute with European courts following its refusal to post a guarantee that it will pay a fine to the European Commission.
    The dispute concerns the 13.75 million Euro ($14 million) fine imposed by the EC on DSR-Senator, the payment of which was postponed pending the outcome of the Trans-Atlantic Conference Agreement carriers’ appeal of the EC decision.
    Contrary to European procedures, DSR-Senator has also refused to post a bond – a guarantee – that it will pay the fine if it loses the appeal.
DSR-Senator tried to reach an amicable settlement over the guarantee with the EC, but the talks failed, Jan Steffens, executive vice president of DSR-Senator, told American Shipper.
    In addition, the court of first instance of Luxembourg has turned down a request by the German carrier for an exemption from the guarantee obligation.
    Steffens said that DSR-Senator has several weeks to appeal the Luxembourg court’s ruling.
    The German carrier, owned by Korea’s Hanjin Shipping, would not comment on reports that the payment of the fine would endanger its financial state.
    DSR-Senator, which has lost money for years, has now operated in the black "for several months," Steffens said.