The California Central District Court is likely to grant the US Department of Justice's (DOJ) request for protective custody of the superyacht Equanimity soon, according to a report by Bloomberg this morning.

According to the report, the district judge Dale S Fischer said yesterday that she would issue an order on the DOJ's request soon, and she wasn't persuaded by arguments from the financier Low Taek Jho's lawyers that her order would interfere with rulings by the Indonesian courts.

"She (the judge) said lawyers for Low and the trusts that hold title to the 300-foot (91-meter) yacht may want to get their 'mandamus papers' ready, referring to their threat to appeal her ruling," the report said.

The yacht is subject to a civil forfeiture suit brought by the DOJ, which claimed that the US$250 million vessel was purchased using funds that had been misappropriated from 1MDB and subsequently channeled through the US financial system.

It said the vessel is beneficially owned by Low through a series of intermediaries including its registered owner Equanimity (Cayman) Ltd. 

This culminated in the seizure of the vessel by Indonesian authorities off the coast of Bali on Feb 28, but the Jakarta South District Court ruled on April 17 that the seizure did not comply with Indonesian laws concerning mutual legal assistance and ordered the vessel to be returned. 

The DOJ said it had since filed a formal request for mutual legal assistance on April 19, as required by Indonesia law. 

In the meantime, the DOJ and Equanimity Ltd lawyers had agreed to sell the yacht while the civil forfeiture suit is still ongoing, but argued over where and how the sale should be conducted.

The DOJ wants the vessel sailed to the US waters under protective custody where it would be sold in the North American market, claiming that the existing crew could not be trusted to do so even under a court order. 

Equanimity Ltd meanwhile said the crew has unique expertise in running the vessel and preserving its resale value, and wants the vessel sold in the Mediterranean market that it claims was more lucrative.

The hearing yesterday was meant to hear oral arguments on DOJ's request for protective custody. Malaysiakini had previously reported that it was scheduled on May 16, but the hearing had since been brought forward.

Meanwhile, Bloomberg reported that Equanimity Ltd lawyer Jeremy Matz had said after yesterday's hearing that his clients will comply with a final and binding order to turn over the yacht. However, he will appeal against a ruling against them.

Low, for the record, had claimed that the allegations against him are politically motivated. 1MDB had said that all its money had been accounted for.