MS Mikhail Lermontov, launched in 1972, was the last of the five "poet" ships: Ivan Franko, Taras Shevchenko, Alexandr Pushkin (later became Marco Polo), Shota Rustaveli and Mikhail Lermontov, named after famous Ukrainian, Georgian and Russian writers (Ivan Franko and Taras Shevchenko being Ukrainian, and Shota Rustaveli being Georgian), built to the same design at V.E.B.

[4] However, the Soviet government realised that there was more money to be made by converting it to a cruise ship, and the accommodation and facilities on board were significantly upgraded in 1982 to meet the expectations of western customers.

[5] On 6 February 1986, Mikhail Lermontov sailed from Sydney on the beginning of a two-week cruise around New Zealand, carrying 372 passengers and a crew of 348, which combined to a total of 743 people.

On the evening of 16 February, Mikhail Lermontov was sailing past Cape Jackson, on the northeastern shore of New Zealand's South Island, about 30 miles (48 km) northwest of Picton.

The passengers were transferred to several ships in the area, including the LPG tanker Tarihiko (Captain Reedman) and the SeaRail road-rail ferry Arahura (Capt John Brew).

Closed circuit diving is recommended to avoid causing reduced visibility when entering enclosed areas such as restaurants, crew messes, and shopping arcades.

"[12] The 1986 New Zealand Minister of Transport Richard Prebble later stated of the captain's actions, "why he decided to guide the ship over a passage that he actually knew was too shallow, I don't think he'll ever be able to answer.

[15] New Zealand Prime Minister at the time of the sinking, David Lange, called the sentence "totally absurd; it's an instance of totalitarian justice being meted out to a man who had no ... responsibility for steering the ship anywhere near Port Jackson.

"[16] As harsh as it may seem - "The presence of a pilot on board does not relieve the master or officer in charge of the watch from their duties or obligations for the safety of the ship" [17] The disaster was the subject of the celebrated Australian restitution case Baltic Shipping Company v Dillon (The Mikhail Lermontov) (1993) 176 CLR 344, in which Mrs Dillon, having already been awarded damages for loss to both her possessions and person, as well as a pro-rata refund on her cruise ticket, claimed restitution for the remaining value of her ticket on the basis of failure of consideration.

Rejecting proposed analyses of the cruise as an entire obligation, and alternatively as a payment conditional on performance, the High Court re-affirmed the rule that failure of consideration must be total in order for a claim for restitution to be sustained.