Ship Mortgage

Court Rules on Liens and Breaches

A Lesson in admiralty law was recently provided by the U.S. Court of Appeals for the Fifth Circuit when it ruled that a maritime lien for breach of a charter party attaches when the vessel is placed at the charterer's disposal. Dennis Bryant, writing about the case on the Maritime Liens website, notes, "A vessel owner entered into a time charter and accordingly delivered the vessel. The vessel was then sold to a third party, subject to the time charter, and the new owner obtained a mortgage loan on the vessel. The bank providing the loan duly recorded its preferred ship mortgage. "Soon thereafter, the new owner breached the time charter and then defaulted on the mortgage. Both the bank and the charterer sought to recoup their losses by having the vessel sold, but the proceeds were not expected to cover both claims. Therefore, the priority of the two liens became paramount. The bank asserted that its lien took precedence as its preferred ship mortgage was recorded before the time charter was breached. The court held that the maritime lien for a charter attaches when the vessel is placed at the disposal of the charterer, even though it remains inchoate until a breach arises. Thus, since the charter commenced prior to the vessel sale, the charterer's lien prevailed over the preferred ship mortgage." Source: Maritime Advocate Online

LISCR Welcomes Liberian Legislation

The Advisory Board of the Liberian International Ship & Corporate Registry (LISCR), at its inaugural meeting, held in conjunction with the Annual Conference of the Connecticut Maritime Association, in Stamford, Conn., has set a positive agenda designed to drive forward the Liberian Registry's goal of achieving excellence in standards of quality and service. In his address to the CMA's lunch, Board chairman Rex Harrington reported that the Board had welcomed a number of developments but had

Useless Judgment Doctrine Moots Appeal

The U.S. Court of Appeals for the Fifth Circuit ruled that, under the useless judgment doctrine, it lacked jurisdiction to consider an appeal. In the instant case, plaintiff ship manager operated a ship for the owner. The ship was subject to a preferred ship mortgage and also subject to various liens held by suppliers of necessaries. When the owner did not pay as promised, plaintiff filed an in rem claim and had the ship arrested. The other claimants also filed their claims

Moore Stephens: Russia a Good Place to do Business

Shipping accountant and business consultant Moore Stephens says that, despite recent publicity to the contrary, Russia is now a better place to do business than it has ever been for small and medium-size enterprises, including shipowners. Writing in the latest issue of The Bottom Line, the newsletter of the Moore Stephens shipping industry group, Gavin Stoddart, managing director of Moore Stephens Russia, says, "The door to international finance and international markets is open

Trico Announces $50M Refinancing of Credit Facility

Trico Marine Services, Inc. announced that it has entered into a new $50 million revolving credit facility to refinance its previous $45 million credit facility. The new facility will mature on December 18, 2005, and is structured as a senior secured revolving credit facility. Proceeds from the facility will be used for working capital needs, capital expenditures and other general corporate purposes. The facility will be secured by mortgages on substantially all of the company's Gulf

Star Bulk New Charter for Capesize Star Beta

Star Bulk Carriers Corp. (Nasdaq: SBLK), a global maritime transportation company focusing on dry bulk cargoes announced the Star Beta, a Capesize vessel of 174,691 dwt, built in 1993, has been time chartered for a period of 13 to 15 months at a gross daily rate of $32,500. The vessel is expected to be delivered to its new charterers within February 2009. The company has reached agreements in principle with its lenders to obtain waivers for certain covenants including minimum asset

LED Provides Guide to Gulf Opportunity Zone Incentives

Released this week, through the lead sponsorship of Louisiana Economic Development (LED), is a compact and comprehensive business guide to federal and state incentives initiated in the wake of hurricanes Katrina and Rita. The Louisiana Gulf Opportunity Zone Business Guide, published in conjunction with Louisiana Business Inc. and other private-sector partners, offers large and small business owners and executives a valuable primer on navigating this set of investment programs – dubbed the

NNS Shipbuilder Volunteers Build House

Newport News Shipbuilding (NNS) division recently dedicated its 11th Habitat for Humanity house in Hampton. NNS has partnered with Habitat for Humanity Peninsula and Greater Williamsburg since 2002 to build homes for families in Hampton Roads. Ron Murray, NNS' vice president of quality and process excellence, presented the house keys to Shereen Wynder and her daughters, Shakira and Treasure. "While this house was built by the hands of shipbuilders

General Maritime Sells Aframax & Suezmax Tankers

General Maritime Corporation (NYSE: GMR) announced that it has completed the sale of the Genmar Princess, a 1991-built Aframax tanker, to an unaffiliated third party, generating net proceeds of $7.5m. The Company also announced it has entered into an agreement to sell the Genmar Gulf, a 1991-built Suezmax tanker, in a separate transaction with another unaffiliated third party. The sale of the Genmar Gulf is expected to generate net proceeds of $11m and close by February 28, 2011

Drewry Report Examines Investment in Ships

Drewry research highlights a buoyant industry but aims to prevent over-optimism by pointing to previous shipping cycles “Investment in Ships” examines the crucial factors and shipping sectors but advises caution to maintain current growth rates Drewry Shipping Consultants announced that its latest report, “Investment in Ships” is now available to purchase. This independent assessment of all the shipping markets identified that most of the world’s leading shipbuilders are in possession of