Marine Link
Saturday, October 1, 2016

OIG Issues Audit of Title XI Loan Guarantee Program

April 2, 2003

The Department of Transportation Office of Inspector General (OIG) issued its Report on the Audit of the Title XI Loan Guarantee Program The audit examined whether proper procedures were followed and the impact of recent bankruptcies. As of December 2002, the Title XI portfolio totaled approximately $4.3 billion in executed loan guarantees and loan guarantee commitments. The report discussed the impact of the American Classic Voyages Co. (AMCV) bankruptcy ($1.3 billion in loan guarantees) and potential problems with loan guarantees to companies that are subsidiaries of Enron Corporation ($122 million in loan guarantees). The OIG recommends that the Maritime Administration undertake more effective oversight of the loan application and review process (including a risk analysis and external review); more vigorous financial oversight of borrowers during the term of the loan guarantee; better monitoring and protection of vessels and shipyards while under the loan guarantee; and more effective stewardship of foreclosed assets.


Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News