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Japanse shipping firm Sanko Steamship Co. Ltd. (Sanko Line) has announced that it has reached an agreement with World Fuel Services (WFS) regarding the future supply of marine fuel to its vessels.

The agreement between both parties follows the arrest of the Sanko Line-chartered M/V Iyo Wind [pictured] last month due to an unpaid bunker bill of $341,600, for fuel supplied to the ship in Texas in June.

The WFS arrest took place despite a US court granting Sanko Line a temporary stay against its creditors after the company filed for temporary Chapter 15 bankruptcy protection on Monday July 2.

In a statement, trustee Hisashi Asafuji said: "As the trustee of The Sanko Steamship Co. Ltd, I reached an agreement with World Fuel Services (WFS), the major marine fuels supply company of Sanko.

"As previously advised, Sanko filed a petition for the commencement of reorganization proceedings under the Corporate Reorganization Act with the Tokyo District Court on July 2, 2012 and the Tokyo District Court issued an order of commencement of corporate reorganization proceedings at 5:00 p.m. on July 23, 2012.

"I have earnestly proceeded with negotiations with WFS which, after the petition was filed by Sanko, has temporarily arrested a vessel operated by Sanko. I and WFS finally reached an agreement. One of the major terms of this agreement, among others, is that WFS undertakes not to arrest any vessel operated by Sanko and to resume supplying fuels to Sanko. Accordingly, Sanko will be able to provide more ensured and stable shipping operation services because the economical and stable procurement of fuels will be ensured by the agreement with WFS.

"I believe that the state of the Sanko’s revenue and expenditure will improve even more as a result of this agreement with WFS."