A New York court has ordered exiled Chinese businessman Guo Wengui to make a payment to creditors, ruling that he had moved a yacht out of U.S. waters to avoid debt collection.
Judge Barry Ostrager of the New York state court found that Guo Wengui had «exercised dominion and control» over the yacht – the «Lady May» – according to a «Bloomberg» report and had arranged for its departure from local waters despite an earlier court order requiring otherwise.
Guo has been ordered to pay $134 million to a creditor, Pacific Alliance, within five days of face the possibility of arrest.
$500,000 Per Day
The case is based on a dispute about a $30 million loan Guo received from Pacific Alliance Asia Opportunity Fund in 2008 which was never repaid and accused interest over the years has increased the total debt to over $116 million.
The court found that in an attempt to avoid debt collection, the Lady May left New York waters but was later ordered to return. Upon failing to do so, the judge imposed a whopping fine of $500,000 per day until its return which has grown to the figure Guo was ordered to pay Pacific Alliance.
Lady May
The Lady May made headlines when Steve Bannon – political strategist and Guo’s media venture partner – was arrested on unrelated federal charges while on the yacht.
The yacht would later leave New York to the Bahamas and was most recently anchored off the Italian coast, according to ship-tracking data from Bloomberg.
Guo, who is also a vocal critic of the Chinese government, has maintained in court papers that he does not own the Lady May.
