The world's largest oil tanker firm, Frontline Ltd., could be put out of business if a legal action to be heard by the Bermuda Supreme Court next week is successful.

Frontline, majority controlled by Norwegian multi-billionaire shipping magnate John Fredriksen, is faced with the action following its failure to make good on court orders first in Sweden and then in Bermuda.

The action was brought by the Blad Foundation following a bitter money dispute stemming from the late 1990s when the two groups joined forces during Frontline's hostile takeover bid for rival shipping company ICB.

The Blad Foundation first launched arbitration proceedings against Frontline in March, 2000 and was successful in getting judgment against the shipping giant in the sum of $8 million and interest and legal costs. That order was also upheld by the Bermuda Supreme Court in May, 2003.

The petition, which is scheduled to be heard by the court on Friday, 25 July, 2003, was launched following Frontline's failure to follow previous court orders. Blad has also successfully petitioned the court in a Mareva injuction that freezes the shipping giant's worldwide accounts at $8 million.

Bermuda Supreme Court documents filed by the Blad Foundation last month made the claim that Frontline had not honoured a statutory demand for payment and "had not paid any amount in respect to the amount sought nor the demand and had raised no defence to the demand."

The wind-up petition - which claims Bermuda-based firm Frontline is insolvent and unable to pay its debts and should be wound up under the provisions of the Bermuda Companies Act 1981 - could bring to a halt what is reportedly the world's largest fleet of tankers including some 40 Very Large Crude Carriers (VLCCs) and up to 30 Suezmaxes.

Frontline's legal counsel, Appleby Spurling & Kempe, declined to answer questions from The Royal Gazette yesterday on the case but court records show that the shipping giant's legal camp have been instructed not to honour previous judgments.

A Bermuda Supreme Court judgment references a letter from one of Frontline's lawyers, a Mr. Grunbaum: "We have been instructed to take every appropriate measure possible in order to prevent enforcement of the award..."

But short of making good on previous court orders, Frontline may find its days as a ruler of the waves numbered.

A publicly-traded company, Frontline, is listed on the New York Stock Exchange, the London Stock Exchange and on the Oslo Stock Exchange with about 5,000 shareholders.