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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


Ultrapetrol Details its Mortgage Note Offering

Following on from an earlier announcement of the US$200-million offering, Ultrapetrol now give provide greater detail. The company has priced the offering of $200 million in aggregate principal amount of its 8.875% First Preferred Ship Mortgage Notes due 2021 (the "Notes"). Notes and related guarantees will be secured by the stock of certain of the Company's subsidiaries and by first preferred mortgages on vessels owned by certain of its subsidiaries


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


Anatomy of a Commercial Marine Lender

Three things: experience, experience, and … experience. It’s a very familiar scenario: And, if you are the CFO, controller, president or other financial manager of your company then you have been here before. Across your conference table sits a potential new lender. He/she is very genuine in their desire to lend you money on your boats. They sincerely want to be a valued and trusted advisor to you in all things vessel-finance related


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


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


Dutch Yards May Need to Rethink Contract Structures

Rotterdam-based law firm AKD said a recent decision of the Dutch courts means that shipyards in The Netherlands may no longer be able to rely on the right to retain a vessel while awaiting payment for work done. As a result of this unexpected decision


DRYSHIPS Financial & Operating Results for 2Q, 2014

  DryShips Inc. an international provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling services, today announced its unaudited financial and operating results


Navios Announces VLCC Delivery

Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, has announced that the Nave Electron, a 2002-built VLCC of 305,178 dwt, was delivered to Navios Acquisition's owned fleet on July 21, 2014. The company also announced that the Nave Electron has been chartered out


DryShips Receives Funds for 9 Drybulk Vessels

DryShips Inc., a global provider of marine transportation services for drybulk and petroleum cargos and offshore contract drilling oil services, announced today the receipt of a firm commitment letter from Nordea Bank for an up to $170 million senior secured credit facility to finance nine drybulk


GSL Prices First Priority Secured Notes

Global Ship Lease, Inc. (GSL) announced  that it has priced an offering of $420,000,000 aggregate principal amount of 10.000% first priority secured notes due 2019 at an issue price of 98.5% in a private placement. The notes will be fully and unconditionally guaranteed, jointly and severally


Beating the Bye-Bye Bonus Blues

A changing tax landscape doesn’t have to mean bad news – at least not just yet. A Changing Landscape Historically, bonus depreciation has had a significant effect on construction of new vessels, allowing businesses to initially expense 30 percent


Euroseas Report Adverse Financial Winds in Year 2013

Image courtesy of Euroseas

Greece-based container ship & drybulk ship owners and operators Euroseas have released its results for the three month period and full year ended December 31, 2013, with the following highlights: Full year 2013 Net loss of $103.4 million, or, $2


Siem Offshore in New Offshore Well Intervention Vessels Deal

MODU vessel rendering courtesy of Siem Offshore

Siem Offshore Inc. say they have signed agreements with Helix Energy Solutions Group, Inc. to provide 2 well-intervention vessels which will be owned by Siem Offshore and chartered by Helix for an initial period of 7 years, with options that can extend the charter periods up to 22 years.


Maritime & Merchant AS Granted Banking License

mm bank.jpg

Maritime & Merchant AS (M&M) (TBR Maritime & Merchant Bank ASA) has received regulatory approval to operate a private bank in Norway, underpinning the firm’s strategy to become a niche financial institution dedicated to meeting the funding needs of owners active in the shipping


Ultrapetrol Completes 100% of Mortgage Note Exchange

Image courtesy of Ultrapetrol

Ultrapetrol announce the results of its offer to exchange all of its outstanding $25.0 million 8 7/8% First Preferred Ship Mortgage Notes due 2021 that were issued in a private placement on October 2, 2013 as follows: The company informs that the notes were issued for an equal principal amount of


Crude Oil Carriers DHT Report Favourable Wind in Q4 2013

DHT Tankship: Photo courtesy of the owners

Oslo, Norway-based DHT Holdings, Inc. reports fourth quarter 2013 results and the acquisition of two VLCCs. Financial Highlights of the quarter EBITDA for the quarter of $18.9 million and net income for the quarter of $11.5 million ($0.48 per share) including $15


Finding New Ways to Finance Jones Act Vessel Builds

James A. Kearns

Sustaining the ongoing boatbuilding boom can involve the lawful use of foreign finance streams. James Kearns takes a closer look at the practice. The citizenship requirements for vessels engaged in the U.S. coastwise trade are generally well-known


GSL Announces New First Priority Secured Notes Offering

Global Ship Lease, Inc. (GSL) announced  that it plans to issue an aggregate principal amount of up to $400,000,000 of first priority secured notes due 2021 in a private placement. The notes will be fully and unconditionally guaranteed, jointly and severally


Navios Acquisition Proposes Private Offering

Navios Maritime Acquisition Corporation announced  that the company and Navios Acquisition Finance (U.S.) Inc., its wholly owned finance subsidiary, intend to offer through a private placement, subject to market and other conditions, approximately $600 million of first priority ship mortgage


Steamship Mutual Set 10% Premium Increase for 2014

Gary Rynsard, Steamship Mutual CEO

At their board meeting on October 22, the directors of the Steamship Mutual reviewed the club’s open policy years, as well as claims in earlier years, and considered the premium ratings required for the 2014 policy year. On the basis of owned claims reported to date






 
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