{"id":"court_ctb_872_0","court":"CTB","case_no":"22-50073","doc_number":872,"sub_number":0,"doc_type":"ORDER","filed_date":null,"title":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION In re:","summary_zh":null,"summary_en":null,"body_en":"## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**\n\nIn re:\n\nChapter 11 Case No.\n\nHO WAN KWOK<sup>1</sup>\n\n22-50073 (JAM)\n\nDebtor.\n\nSeptember 23, 2022\n\n# **DECLARATION OF DEXTER WHITE IN SUPPORT OF PACIFIC ALLIANCE ASIA OPPORTUNITY FUND L.P.'S LIMITED OBJECTION TO HK INTERNATIONAL FUNDS INVESTMENTS (USA) LIMITED, LLC'S MOTION FOR ORDER ESTABLISHING REPAIR RESERVE FOR THE LADY MAY**\n\nI, Dexter White, declare under penalty of perjury that the following is true and correct:\n\n1. I am the President and CEO of Engineering Operations and Certification Services,\n\nLLC (\"EOCS\"), an engineering and operations consultancy based in Connecticut. In this role, I\n\noversee the provision of EOCS's services, which include engineering, design-build processes,\n\nprogram management, operations performance and assessments, facility assessments,\n\nimprovements and certification, nuclear engineering and compliance, incident investigation, and marine surveys. I have spent the last four decades as a shipbuilder and operating engineer,\n\nleading teams to resolve operational problems, through root-cause analysis, mapping, and\n\ndeveloping design and operational changes. I have participated in and overseen the testing for\n\nseaworthiness, certification, and delivery of hundreds of sea vessels, including 50 U.S. Navy\n\nsubmarines. I hold a bachelor's degree in Business Administration and Shipyard Management\n\nfrom the University of New Haven, and have held a United States Coast Guard Master Captain's\n\nLicense. I am a member of the Association of Certified Marine Surveyors, the International Association of Marine Investigators, the Society of Naval Architects & Marine Engineers, and\n\n<sup>1</sup> The last four digits of the Debtor's taxpayer identification number are 9595.\n\nthe American Society of Naval Engineers.\n\n2. I and my team were retained by counsel for Pacific Alliance Asia Opportunity Fund L.P. (\"PAX\") to assist in performing an inspection to assess the condition of the Lady May. I submit this Declaration in support of PAX's Limited Objection to HK International Funds Investments (USA) Limited, LLC's (\"HK USA\") Motion for Order Establishing Repair Reserve for The Lady May (the \"Repair Reserve Motion\") [ECF No. 728]. I have read the Repair Reserve Motion and the exhibits attached thereto. Unless otherwise indicated below, I have personal knowledge of the matters set forth below, and if called as a witness, I could and would testify competently thereto.\n\n### **July 13, 2022 Inspection**\n\n3. On July 13, 2022, at Steelpointe Harbor Marina in Bridgeport, Connecticut, I conducted a visual inspection and took notes and photos of the Lady May's engine room, midship hold, anchor locker, tender stowage, galley and crew quarters, owner and guest accommodations, salon, dining room, bar, bridge, decks, and freeboard above the waterline (the \"July Inspection\").\n\n4. The July Inspection revealed deficiencies that could incur a significant expense of restoring systems to satisfactory operational standards, including, for example:\n\n> a. A failed starboard diesel engine fuel pump. The fuel pump supplies diesel fuel to the injectors to run the engine. Once replaced, a post-installation test will be needed to confirm the operational status of the engine. Based on this deficiency, issues with the port diesel engine are also possible and will likely require an inspection of the port diesel fuel pump to rule out. The inspection of the starboard engine fuel pump (once removed from the engine) found (i) damage to the gears and (ii) metal shards contaminating the engine's internal parts. Extensive repairs are required to restore the starboard engine before a sea trial can be conducted.\n\n- b. The starboard stabilizer exhibited a hydraulic noise during operation due to a faulty check valve. A replacement check valve is on order, but a test must be done to verify (i) the noise no longer exists, and (ii) suitable operation of the stabilizer.\n- c. The bow thruster brakes in \"bypass\" mode. The bow thruster is used to maneuver the ship sideways near piers. The condition requires troubleshooting to determine the root cause and repairs if necessary.\n- d. A damaged paint area (about 3' x 3') at the starboard bow near the anchor, requiring a much larger paint repair area to refinish the hull. Moreover, a structural inspection is necessary to verify the damage is to the paint only.\n- 5. In addition, 26 valves require testing (i.e., the \"Valve Service\" described in the\n\nRepair Reserve Motion). The Valve Service will require technicians to remove, test, and, reinstall each valve. This testing may reveal the need for additional work (such as removal of interferences or installation of replacement parts) and subsequent retesting.\n\n#### **August 25, 2022 Dive Inspection**\n\n6. I also oversaw an August 25, 2022 dive inspection, which was conducted by Harrington Diving & Marine Services (the \"Dive Inspection\"). The Dive Inspection involved a close visual and physical examination of the entire submerged components of the vessel.\n\n7. The Dive Inspection found a loose anode bolt at the bow thruster, which caused the anode to rattle. Anodes are metal coupons that are designed to preserve the hull and propeller from corrosion. If the loose bolt is left unaddressed, extended bow-thruster operation could cause the anode to break free, which could in turn damage the bow thruster.\n\n8. The Dive Inspection also found that the hull of the vessel was covered in sea growth. To fully understand the Lady May's condition, a more detailed inspection is necessary after the vessel is hauled out and the bottom is power washed to clear away the sea growth.\n\n### **Costs Unaccounted for in Repair Reserve Motion**\n\n9. I have reviewed the Repair Reserve Motion and the exhibits filed therewith [ECF\n\n3\n\nNos. 728-1 through 728-16]. It is my view that the Repair Reserve Motion omits certain items and factors that render insufficient the proposed \\$759,836.41 repair reserve (the \"Proposed Repair Reserve Amount\").\n\n10. **Risk.** The Proposed Repair Reserve Amount does not adequately factor in the risk associated with (i) not having a fully defined scope of repairs, or (ii) prolonged time out of water awaiting repairs. Based on my experience in the marine industry, I am aware there is an accepted risk classification system that provides for risk-factor multipliers to be added to cost estimates, and I consistently rely on this classification system when advising on potential project costs.<sup>2</sup> For example, for a repair project with the lowest level of risk—Class 1—project-cost estimates should be increased by up to 15%. Class 1 repair projects are characterized by (i) a full and detailed understanding of the necessary repairs and deliverables based on a thorough inspection onboard ship, and review of drawings and material lists, and (ii) a low likelihood that new repairs or issues will arise as the repair project progresses. At the other end of the spectrum are Class 5 repair projects, for which project-cost estimates should be increased by up to 100%. Class 5 repair projects are characterized by (i) an incomplete and generalized understanding of the necessary repair projects, and (ii) a high likelihood that new repairs or issues will arise as the repair project progresses. Projects move through the intervening risk classifications based on the level of project detail and the likelihood of discovering new issues. The Lady May repair project represents a Class 5 risk (for which a 100% risk adjustment is appropriate), because (i) the vendor estimates are based on brief, high-level descriptions of the currently identified repairs not a thorough inspection<sup>3</sup>—and (ii) potential high-risk and -cost issues (e.g., total engine\n\n<sup>2</sup> *See* AACE INT'L, COST ESTIMATE CLASSIFICATION SYSTEM – AS APPLIED IN ENGINEERING, PROCUREMENT, AND CONSTRUCTION FOR THE PROCESS INDUSTRIES 3 (Aug. 7, 2020).\n\n<sup>3</sup> Only one vendor (Precision Power) provided a somewhat detailed estimate, but still included a disclaimer excluding the cost of any additional damage found during the repair period.\n\nreplacement) that have not yet been ruled out.\n\n11. Based on my knowledge and experience, there is currently an unreliable supply chain in the marine industry. Any delay in obtaining necessary parts could extend the time it takes to repair the Lady May, running up costs and increasing risk. Due to these external factors, it is reasonable to assume that the Lady May could be out of the water for repairs for 45 to 150 days or longer, which increases risk of greater expenses. Any lack of available technicians (to remove old parts and install new ones) would increase the risks and costs discussed above. The Proposed Repair Reserve Amount does not adequately account for these risk- and cost-increasing possibilities.\n\n12. **Repairs**. The Repair Reserve Motion lists four \"required\" repairs: (i) servicing valves in the hull; (ii) painting a portion of the hull; (iii) replacing the bilge boards; and (iv) repairing the starboard main engine (the \"Known Repairs\"). (¶ 1.) The Known Repairs are necessary to bring the Lady May to good working order, but they are not sufficient. Critically, the Repair Reserve Motion omits several costly potential repair items/tasks, for example:\n\n- a. Starboard engine replacement parts. Until technicians are able to go into the engine itself and determine the extent of any repairs needed, it is impossible to rule out repairs and/or replacements of other parts of the starboard engine.\n- b. Engine-to-shaft alignment. To lift out the engine for repair, the shaft must be disconnected. When the engine is lowered into place on mounts, the shaft is reconnected and checked for proper alignment, including the clearance outboard at the steady bearings near the propeller. If the shaft is not aligned correctly, it creates vibrations that will wear the engine and bearings and may damage the propeller if it contacts the hull.\n- c. Unforeseen hull-valve replacement parts. Some valves removed from the ship may not pass testing. When the valve is opened to inspect the cause of failure, some internal parts will likely need replacement (e.g., ball, stem, seats, o-rings, or gaskets). Which parts will need replacement cannot be\n\nknown until the valve is opened up and inspected.<sup>4</sup>\n\n- d. A fuel pump inspection for the port engine. An inspection of the port fuel pump has not been conducted yet, and could reveal similar wear as the starboard fuel pump. If there is wear, but it is not as severe as the starboard pump, it may only require a new pump, alignment, and changing the lube oil. But if the wear is more severe, then work similar to the starboard engine repairs will be required.\n- e. Repairs to the port engine if damage to the fuel pump is found. Given the extent of known damages to the starboard engine, it is possible that the port engine will also require repairs. The extent to which the port engine will need repairs is thus far unknown and will only be assessable if/when the engine is opened up and examined by technicians.\n- f. The need for an entirely new engine or set of engines. It is possible that, over the course of conducting repairs, the technicians will determine that, due to extensive manhours and/or repair time and lack of available parts, a whole new set of engines is needed. This option may be a \"last resort,\" but could become the best choice. At this stage, it is too early to rule out the possibility that a new set of engines will be required.\n- 13. **Ancillary Costs**. The Proposed Repair Reserve Amount omits ancillary costs\n\nassociated with bringing the Lady May to good working order, such as the cost of retaining a crew for the duration of repairs and the cost of certifying the hull and shaft (by Lloyd's Register of Shipping or the American Bureau of Shipping). These certifications attest to the seaworthiness of the vessel and are prerequisites to obtaining insurance. Certification costs vary, but in my experience, they can range from \\$2,000 to \\$10,000 per certification.\n\n14. Taking into account (i) industry-accepted risk factors related to delay in sourcing parts, securing technicians, and/or making repairs (i.e., up to 150 days), (ii) unaccounted-for repairs, and (iii) the associated ancillary costs, it is my view that an appropriate amount to put in the repair reserve would be **\\$3,761,080**. 5\n\n<sup>4</sup> A number of hull valves were scheduled for inspection during the last dry-dock period, but were deferred and not removed for inspection. The valves should be removed, inspected, tested, and repaired as necessary.\n\n<sup>5</sup> A breakdown of the costs and risks underlying this number is attached hereto as Appendix 1.\n\nI declare under penalty of perjury under the laws of the United States of America that the\n\nforegoing is true and correct.\n\nExecuted this 23rd day of September, 2022, at Mystic, Connecticut.\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ Dexter White","body_zh":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION（美国康涅狄格州破产法院布里奇波特分院）\n\n关于：\n\n第11章 案号\n\nHO WAN KWOK（郭文贵）1\n\n22-50073 (JAM)\n\n债务人。\n\n2022年9月23日\nDEXTER WHITE 支持 PACIFIC ALLIANCE ASIA OPPORTUNITY FUND L.P. 对 HK INTERNATIONAL FUNDS INVESTMENTS (USA) LIMITED, LLC 就设立 LADY MAY 号维修准备金之动议提出有限异议的声明\n\n我，Dexter White，在伪证受罚原则下声明以下内容真实、准确无误：\n\n1. 我是 Engineering Operations and Certification Services, LLC（“EOCS”，工程运营与认证服务有限责任公司）的总裁兼首席执行官，该公司是一家总部位于康涅狄格州的工程与运营咨询机构。在该职位上，我统筹 EOCS 服务的提供，其中包括工程设计、设计建造流程、项目管理、运营绩效与评估、设施评估、改进与认证、核工程与合规、事故调查以及海事检验。在过去的四十年中，我一直从事造船与运营工程师工作，通过根本原因分析、排查绘制以及制定设计和运营变更方案，领导团队解决运营问题。我曾参与并主持了数百艘海上船舶的适航性测试、认证与交付工作，其中包括50艘美国海军潜艇。我拥有纽黑文大学（University of New Haven）工商管理与船厂管理学士学位，并曾持有美国海岸警卫队特许船长执照（United States Coast Guard Master Captain's License）。我是注册海事检验师协会（Association of Certified Marine Surveyors）、国际海事调查员协会（International Association of Marine Investigators）、造船与轮机工程师学会（Society of Naval Architects & Marine Engineers）以及美国海军工程师学会（American Society of Naval Engineers）的成员。\n\n1 债务人纳税人识别号的后四位数为9595。\n\n2. 我和我的团队受 Pacific Alliance Asia Opportunity Fund L.P.（“PAX”，太平洋同盟亚洲机遇基金有限合伙）的律师聘请，协助开展检查以评估 Lady May 号的状况。我提交本声明，以支持 PAX 对 HK International Funds Investments (USA) Limited, LLC（“HK USA”，香港国际基金投资（美国）有限公司）就设立 Lady May 号维修准备金之动议（下称“《维修准备金动议》”）[ECF No. 728] 所提出的有限异议。我已阅读了《维修准备金动议》及其随附的证物。除下文另有说明外，我对下文所述事项具有亲身了解；若被传唤出庭作证，我能够且愿意就此提供有法律效力的证言。\n\n2022年7月13日检查\n\n3. 2022年7月13日，在康涅狄格州布里奇波特的斯蒂尔波特港码头（Steelpointe Harbor Marina），我对 Lady May 号的机舱、中船舱、锚链舱、小艇存放处、厨房和船员宿舍、船东和客舱、沙龙、餐厅、酒吧、驾驶台、甲板以及水线以上的干舷进行了外观检查，并做了记录和拍照（下称“7月检查”）。\n\n4. 7月检查发现了多处缺陷，要将各系统恢复至令人满意的运行标准可能会产生巨额费用，例如包括：\n\na. 右舷柴油发动机燃油泵故障。燃油泵为喷油器供应柴油以运行发动机。更换后，需要进行安装后测试以确认发动机的运行状态。鉴于此缺陷，左舷柴油发动机也可能存在问题，可能需要检查左舷柴油燃油泵以予以排除。对右舷发动机燃油泵（从发动机上拆卸后）的检查发现：(i) 齿轮受损，以及 (ii) 金属碎屑污染了发动机内部零件。在进行海试之前，需要进行大修以恢复右舷发动机的功能。\n\nb. 由于止回阀故障，右舷减摇鳍在运行过程中出现液压噪音。备用止回阀正在订购中，但必须进行测试以验证：(i) 噪音已不复存在，以及 (ii) 减摇鳍运行正常。\n\nc. 艏侧推器制动器处于“旁通”模式。艏侧推器用于在码头附近横向操纵船舶。该情况需要进行排查以确定根本原因，并在必要时进行维修。\n\nd. 右舷船艏锚附近有一处受损的漆面区域（约3英尺 x 3英尺），需要更大面积的油漆修补以翻新船体。此外，有必要进行结构检查以核实该损坏是否仅局限于油漆。\n\n5. 此外，有26个阀门需要测试（即《维修准备金动议》中描述的“阀门维护”）。阀门维护将需要技术人员拆卸、测试并重新安装每个阀门。该测试可能会发现需要进行额外的工作（例如清除干涉物或安装更换部件）以及随后重新测试。\n\n2022年8月25日潜水检查\n\n6. 我还监督了2022年8月25日的潜水检查，该检查由 Harrington Diving & Marine Services 公司进行（下称“潜水检查”）。潜水检查包括对船舶整个水下部件进行仔细的外观和物理检查。\n\n7. 潜水检查发现艏侧推器处的一颗阳极螺栓松动，导致阳极发出咔哒声。阳极是旨在保护船体和螺旋桨免受腐蚀的金属试片。如果对松动的螺栓置之不理，长时间运行艏侧推器可能导致阳极脱落，从而进而损坏艏侧推器。\n\n8. 潜水检查还发现船体表面附着了海洋生物。为了全面了解 Lady May 号的状况，在船舶出水并对船底进行高压冲洗以清除海洋生物后，有必要进行更详细的检查。\n\n《维修准备金动议》中未计入的费用\n\n9. 我已审阅了《维修准备金动议》及其随附提交的证物 [ECF Nos. 728-1 至 728-16]。我认为，《维修准备金动议》遗漏了某些项目和因素，导致所提议的 $759,836.41 维修准备金（下称“提议维修准备金金额”）并不充分。\n\n10. 风险。提议维修准备金金额未充分考虑与以下情况相关的风险：(i) 维修范围尚未完全明确，或 (ii) 船舶长时间脱离水面等待维修。根据我在海事业界的经验，我知道存在一个公认的风险分类系统，该系统规定在成本估算中加入风险系数乘数，并且我在就潜在项目成本提供建议时始终依循该分类系统。2 例如，对于风险级别最低（第1类）的维修项目，项目成本估算应增加最多 15%。第1类维修项目的特征是：(i) 基于船上彻底检查以及对图纸和材料清单的审查，对必要的维修和交付成果具有全面而详细的了解，并且 (ii) 随着维修项目的推进，出现新的维修需求或问题的可能性较低。而在另一端的则是第5类维修项目，对此类项目的成本估算应增加最多 100%。第5类维修项目的特征是：(i) 对必要的维修项目了解不完整且宽泛，并且 (ii) 随着维修项目的推进，出现新的维修需求或问题的可能性极高。项目根据项目细节程度和发现新问题的可能性在不同的风险等级之间浮动。Lady May 号的维修项目属于第5类风险（对其适用 100% 的风险调整是恰当的），因为：(i) 供应商的报价是基于对目前已识别维修项目的简短、宽泛描述，而非基于彻底检查3——并且 (ii) 潜在的高风险和高成本问题（例如发动机整体更换）尚未被排除。\n\n2 参见 AACE INT'L, COST ESTIMATE CLASSIFICATION SYSTEM – AS APPLIED IN ENGINEERING, PROCUREMENT, AND CONSTRUCTION FOR THE PROCESS INDUSTRIES 3 (Aug. 7, 2020)（国际成本工程推进协会，《成本估算分类系统——在流程工业工程、采购与施工中的应用》第3页（2020年8月7日））。\n\n3 只有一家供应商（Precision Power）提供了较为详细的估算，但仍包含了一项免责声明，排除了在维修期间发现的任何额外损坏的费用。\n\n11. 根据我的知识和经验，海运业目前的供应链并不可靠。获取必要零部件的任何延误都可能延长维修 Lady May 号所需的时间，从而推高成本并增加风险。由于这些外部因素，可以合理推测 Lady May 号可能会离开水面进行长达45至150天或更长时间的维修，这增加了产生更大费用的风险。可用技术人员的任何短缺（用于拆除旧零件和安装新零件）都会增加上述风险和成本。提议维修准备金金额并未充分考虑这些增加风险和成本的可能性。\n\n12. 维修。《维修准备金动议》列出了四项“必需的”维修：(i) 检修船体内的阀门；(ii) 对船体部分区域进行涂装；(iii) 更换舱底板；以及 (iv) 维修右舷主机（下称“已知维修项目”）。（第1段。）已知维修项目对于使 Lady May 号恢复至良好运行状态是必要的，但并不充分。至关重要的是，《维修准备金动议》遗漏了若干项代价高昂的潜在维修项目/任务，例如：\n\na. 右舷发动机更换零件。在技术人员能够进入发动机内部并确定所需的维修程度之前，无法排除对右舷发动机其他部件进行维修和/或更换的可能性。\n\nb. 发动机与轴系对中。为了吊出发动机进行维修，必须断开轴系。当发动机被降落至基座就位时，需重新连接轴系并检查是否正确对中，包括螺旋桨附近稳舵轴承处的舷外间隙。如果轴系未正确对中，会产生振动，从而磨损发动机和轴承，并且如果接触到船体，还可能损坏螺旋桨。\n\nc. 未可预见的船体阀门更换零件。从船上拆下的一些阀门可能无法通过测试。当打开阀门检查故障原因时，某些内部零件可能需要更换（例如阀球、阀杆、阀座、O形圈或垫圈）。在打开并检查阀门之前，无法知晓哪些零件需要更换。4\n\nd. 左舷发动机燃油泵检查。目前尚未对左舷燃油泵进行检查，该检查可能会发现与右舷燃油泵类似的磨损。如果存在磨损但不如右舷泵严重，可能只需要更换新泵、进行对中并更换润滑油。但如果磨损更为严重，则需要进行类似于右舷发动机维修的工作。\n\ne. 若发现燃油泵损坏则需对左舷发动机进行维修。鉴于右舷发动机已知的受损程度，左舷发动机也有可能需要维修。迄今为止，左舷发动机需要维修的程度尚不清楚，只有在技术人员拆开并检查发动机时/之后才能予以评估。\n\nf. 更换全新发动机或整套发动机的需求。在进行维修的过程中，技术人员可能会确定，由于人工工时和/或维修时间过长以及缺少可用零件，需要更换一整套全新发动机。这种选择可能是“最后的手段”，但可能会成为最佳选择。在现阶段，排除需要一套新发动机的可能性为时过早。\n\n13. 附带费用。提议维修准备金金额遗漏了附带费用\n\n与使Lady May（梅号）恢复良好运行状态相关的费用，例如在维修期间留用船员的费用，以及船体和轴系认证的费用（由Lloyd's Register of Shipping（英国劳氏船级社）或American Bureau of Shipping（美国船级社）进行）。这些认证证明了船舶的适航性，并且是获得保险的前提条件。认证费用各不相同，但根据我的经验，每项认证的费用在$2,000到$10,000之间。\n\n14. 综合考虑(i)与采购零部件、聘请技术人员和/或进行维修延迟相关的行业公认风险因素（即长达150天），(ii)未计入的维修项目，以及(iii)相关的附属费用，我认为计入维修准备金的适当金额为$3,761,080。5\n\n4 若干船体阀门原定于上次干船坞期间进行检验，但被推迟且未拆下检验。这些阀门应予以拆卸、检验、测试，并根据需要进行维修。\n\n5 作为本金额依据的费用和风险明细作为附录1随附于此。\n\n我依据美利坚合众国法律郑重声明，如有不实甘受伪证罪处罚，\n\n上述内容真实无误。\n\n于2022年9月23日在康涅狄格州Mystic签署。\n\n____________________________________ Dexter White（德克斯特·怀特）","key_entities":["Je","Kwok","Ho Wan Kwok","CIPA"],"ecf_references":[{"doc_number":3,"court":"CTB"},{"doc_number":728,"court":"CTB"}],"word_count":2073,"status":"published","published_at":null,"created_at":null,"updated_at":"2026-08-23 13:05:40"}