As soon as the Peetak fleet joined the pirate fleet, they became privateers. They are no different from pirates in the enemy eyes, apart from the possibility of capturing them alive for ransom. Nobody would pay a pirate's ransom, but Peetak might pay ransom to get their sailors and officers back. What comes to the ships, they would need to pay the full price, obviously. I doubt they have any money, though.
If they aren't considered privateers, the only other choice would be for this to be a declaration of war by the house Peetak, which is probably not what they would want to do.