Bank of America Sues Marshall Islands Corporation Over $3.75 Million Yacht Loan and Seeks Arrest of 106-Foot M/Y CYRA in Florida
Bank of America, N.A. has filed a verified admiralty complaint in the Southern District of Florida against Ocean Advantage, Inc., a Marshall Islands corporation, seeking foreclosure of a preferred ship mortgage and arrest of the 106-foot motor yacht M/Y CYRA, formerly known as M/Y Andreika. The lawsuit, filed under Case No. 1:25-cv-25156-KMM, alleges multiple breaches of a commercial loan agreement and associated maritime security documents secured by the luxury vessel.
Luxury Yacht M/Y CYRA Faces Judicial Arrest in Florida Over Loan Default and Lapsed Insurance Coverage
According to the complaint, Ocean Advantage obtained a $3.75 million variable rate term loan from Bank of America in November 2021 to finance the purchase of the M/Y CYRA, a 2017 Flybridge motor yacht documented under the Republic of the Marshall Islands. The loan was secured through a First Preferred Ship Mortgage, a Security Agreement, and related UCC filings. Additional guarantors included Ocean Advantage’s sole director, Zachary Vella, and two related entities: MY Paramour, LLC and Vella Group, LLC.
Bank of America alleges that Ocean Advantage defaulted on its monthly payments beginning in December 2024 and allowed the required insurance coverage on the vessel to lapse—violating both the loan agreement and ship mortgage terms. Despite multiple default notices and final demand letters sent between December 2024 and February 2025, the borrower allegedly failed to cure the defaults or make full payment.
Complaint Seeks Foreclosure, Sale of Vessel, and Recovery of Over $3.8 Million in Principal, Interest, and Fees
As of October 31, 2025, Bank of America claims the borrower owes $3,187,500 in unpaid principal, $238,426.71 in accrued interest, $400,989.24 in default interest, and $15,643.98 in late fees—amounts that continue to accrue. The bank is seeking a court order authorizing the arrest of M/Y CYRA and a judgment in rem against the vessel for the full debt amount, as well as foreclosure and judicial sale under the Ship Mortgage Act.
In addition, the bank has brought in personam claims against Ocean Advantage for breach of the loan agreement and foreclosure of its security interest in additional personal property collateral under the Security Agreement. The UCC-1 financing statement was previously filed in Washington, D.C. to perfect the security interest.
Bank Alleges Borrower’s Continuous Nonpayment and Contract Breaches Despite Multiple Notices
The lawsuit outlines a timeline of repeated payment failures, starting with the December 2024 missed installment, followed by multiple warnings from Bank of America that went unheeded. In addition to financial nonperformance, Ocean Advantage allegedly violated loan covenants by failing to maintain vessel insurance as required under Paragraph 7.5 of the Loan Agreement and Paragraph 5 of the Ship Mortgage.
Despite these breaches and opportunities to cure the default, Bank of America alleges that Ocean Advantage failed to respond adequately, forcing the lender to initiate foreclosure proceedings to protect its collateral interest in the vessel and recover outstanding debts.
Vessel Located and Operated in Florida Waters Despite Offshore Ownership Structure
Although M/Y CYRA is registered under the Republic of the Marshall Islands, Bank of America filed suit in the Southern District of Florida, citing that the vessel is stored, operated, and maintained within the district’s jurisdiction. The complaint also notes that Ocean Advantage’s sole director, Zachary Vella, has direct ties to the region, including ownership interests in real property through related entities.
By invoking federal admiralty jurisdiction under 46 U.S.C. § 31325 and 28 U.S.C. § 1333, the bank seeks expedited judicial remedies, including vessel arrest and court-supervised sale of the luxury yacht to satisfy the alleged indebtedness.
Contact a Maritime Finance Attorney if You Are Facing Yacht Foreclosure or Vessel Arrest Proceedings
Vessel mortgage defaults and yacht loan foreclosures involve complex maritime laws and can escalate quickly to vessel arrest and judicial sale. If you are a yacht owner, lender, or guarantor involved in a dispute over vessel financing, it’s critical to consult an experienced maritime attorney who understands ship mortgages, security agreements, and admiralty litigation procedures.
Contact us now to speak with a maritime vessel arrest and loan foreclosure attorney.
Disclaimer: Our firm does not represent the plaintiff in this case and is not involved in the litigation. The information provided is a summary of allegations based on publicly available court filings. We make no representations about the truth of these allegations, are not commenting on the merits of the case, and are not predicting any outcome.
