In June 2012, the Toronto Port Authority rescinded the lease agreement for the slip where the ship was moored, citing over $500,000 in payments owed for back taxes, rent and utility payments. At the same time the city shut off the boat's water supply, leading the health department to order the restaurant closed due to the staff's inability to sanitize dishes and wash their hands. Letnik was given until July 27, 2012, to remove the boat's gangplank and all restaurant signs, and the port authority invoked marine law ordering that the ship "must refrain from leaving" until its debts to the city and the authority is paid. The "Jadran"s engine had been removed, and the ship was mired in mud, requiring it to be towed as it could not sail under its own power.