United Arab Shipping Company (UASC) is a corporation formed under the laws of Kuwait. Its capital stock is wholly owned by the governments of Kuwait, Saudi Arabia, the United Arab Emirates, Qatar, Iraq, and Bahrain. No single government owned more than 19.33% of UASC’s shares, and the corporation was created by a treaty among the owner nations.

Three seamen who were injured while working for UASC brought suit against it in federal district court in the United States. UASC maintains it enjoys sovereign immunity. The seamen claim it is a commercial enterprise and not entitled to immunity. Who is correct? [Mangattu v M/V IBN Hayyan, 35 F.3d 205 (5th Cir. 1994)]