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     T-1041-95

         AN ACTION IN REM AGAINST THE SHIP "KRISTINA LOGOS" AND IN PERSONAM AGAINST ULYBEL ENTERPRISES LIMITED, JOSE PRATAS and THE OWNERS, CHARTERERS AND OTHERS INTERESTED IN THE SHIP "KRISTINA LOGOS"

BETWEEN:      MARIO NEVES

     -and-
     CARLOS NEVES

     Plaintiffs

     AND:

     THE SHIP "KRISTINA LOGOS",
     ULYBEL ENTERPRISES LIMITED,
     JOSE PRATAS,

     and

     THE OWNERS, CHARTERERS AND OTHERS INTERESTED IN THE SHIP "KRISTINA LOGOS"

     Defendants

     AND:

     HER MAJESTY THE QUEEN

     Intervenor

     Application on behalf of Defendants ULYBEL ENTERPRISES LIMITED and JOSE PRATAS requesting the Court to:

-      ORDER a stay of the operation and execution of the Order rendered by Richard Morneau, Prothonotary, on December 18, 1996, until such date that judgment be rendered by the Federal Court of Appeal in respect of the appeal filed by the Defendants on January 24, 1997;
-      AUTHORIZE the Defendants to present this Application on this day by granting to them an exemption from their obligation under the Rules of the Federal Court to serve and file their Application within two (2) clear days of its presentation;
-      RENDER any other relief as may be just under the circumstances.

     [Section 50 of the Federal Court Act and

     Rules 341A & 1909 of the Federal Court Rules]

     REASONS FOR ORDER

PINARD, J.

     Absent any affidavit filed by or on behalf of any of the Defendants in this entire file, the Defendants ULYBEL ENTERPRISES LIMITED and JOSE PRATAS have failed to satisfy me that they will suffer irreparable harm if the requested stay is not granted, or that the balance of convenience warrants the said stay.

     Given the advanced stage of the sale proceedings, given the fact that the vessel is a wasting asset, given the continuous drain on the public purse for the purpose of maintaining the vessel, given the interest of the mass of creditors, given the fact that the proceeds of the sale will be before the Court unless otherwise ordered, and given the fact that counsel for the above Defendants has indicated that the latter are not prepared to give security exceeding $60,000.00, I believe that it is in the interests of justice that the vessel be sold as soon as possible.

     The application, therefore, must be dismissed. Costs in the cause

     Yvon Pinard

             Judge

MONTREAL, Quebec

February 4th, 1997

                 T-1041-95

     AN ACTION IN REM AGAINST THE SHIP "KRISTINA LOGOS" AND IN PERSONAM AGAINST ULYBEL ENTERPRISES LIMITED, JOSE PRATAS and THE OWNERS, CHARTERERS AND OTHERS INTERESTED IN THE SHIP "KRISTINA LOGOS"

         BETWEEEN:      MARIO NEVES

             -and-
             CARLOS NEVES

     Plaintiffs

         AND:      THE SHIP "KRISTINA LOGOS",

             ULYBEL ENTERPRISES LIMITED,
             JOSE PRATAS,

             and

             THE OWNERS, CHARTERERS AND OTHERS INTERESTED IN THE SHIP "KRISTINA LOGOS"

     Defendants

         AND:      HER MAJESTY THE QUEEN

     Intervenor

             REASONS FOR ORDER

     FEDERAL COURT OF CANADA

     Names of Counsel and Solicitors of Record

COURT NO:              T-1041-95

STYLE OF CAUSE:      AN ACTION IN REM AGAINST THE SHIP "KRISTINA LOGOS" AND IN PERSONAM AGAINST ULYBEL ENTERPRISES LIMITED, JOSE PRATAS and THE OWNERS, CHARTERERS AND OTHERS INTERESTED IN THE SHIP "KRISTINA LOGOS"

     MARIO NEVES

     -and-
     CARLOS NEVES

     Plaintiffs

     AND:      THE SHIP "KRISTINA LOGOS",

         ULYBEL ENTERPRISES LIMITED,
         JOSE PRATAS,

         and

         THE OWNERS, CHARTERERS AND OTHERS INTERESTED IN THE SHIP "KRISTINA LOGOS"

     Defendants

     AND:      HER MAJESTY THE QUEEN

     Intervenor

PLACE OF HEARING:      Montreal, Quebec

DATE OF HEARING:      January 3, 1997

REASONS FOR ORDER BY:      The Honourable Mr. Justice Pinard

DATED:          January 4, 1997

APPEARANCE:          Me Laurent Debrun      for the Defendants

                 (Ulybel Enterprises Ltd.,

                 and José Pratas)

         Me Victor De Marco      for the Intervenor

SOLICITORS OF RECORD:

     Me Laurent Debrun                      for the Defendants

     McCARTHY TÉTREAULT          (Ulybel Enterprises Ltd.,

     Montreal, Quebec              and José Pratas)

     - 2 -

     Mes Danièle Dion/Victor De Marco      for the Intervenor

     BRISSET BISHOP

     Montreal, Quebec

     Mes John D. Murphy/Richard Southcott      for the Plaintiffs

     STEWART McKELVEY

     STIRLING SCALES

     Halifax, Nova Scotia


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