AKD: Shipping to Benefit from EU Debt Recovery Proposal

marinelink.com
Monday, January 13, 2014
Sebastiaan Moolenaar

Rotterdam-based law firm AKD says shipping and international trade and logistics operators should welcome a recent decision by European Justice Ministers which will improve their chances of successfully recovering money owed to them by trading partners in EU countries by effectively opening the door to the Europe-wide freezing of bank accounts.

At the end of December, 2013, European Justice Ministers reached agreement on the European Account Preservation Order (EAPO), which will facilitate the recovery of cross-border debt claims throughout the EU. This is part of an ongoing program to harmonize procedural rules throughout Europe.

Sebastiaan Moolenaar, a partner with the transport & trade team at AKD, said, “Creditors seeking to recover debts in EU member states face serious difficulties, particularly in the current difficult - albeit generally improving - economic climate. It has been estimated that European companies lose roughly 2.6 per cent of their yearly turnover to bad debts. Moreover, about a million SMEs (Small and Medium-sized Enterprises) encounter problems with cross-border debts, reportedly writing off up to EUR 600m a year because they are scared off by the time, effort and cost involved in taking even provisional steps to preserve the assets of debtors located abroad.

“Easy and quick access to asset preservation measures is essential in order to ensure that debtors do not remove or dissipate their assets before creditors have obtained judgment. But the prospects for issuing - and the conditions governing - asset preservation orders vary considerably under the national laws of different EU countries. Among other things, it is sometimes impossible in many EU countries for creditors to obtain information about the whereabouts of their debtors’ bank accounts, and the cost of obtaining and enforcing a cross-border account preservation order is often prohibitive.

“The EAPO proposal should be welcomed by all parties to the transportation chain operating throughout Europe. It allows money to stay where it is until a court has taken a decision on the repayment of funds. It will introduce uniformity to the account preservation orders which creditors can obtain, irrespective of the country in which the competent court issuing the order is located. Creditors will be allowed access to information concerning the whereabouts of debtors' bank accounts, and costs and delays involved in obtaining and enforcing account preservation orders will be reduced.”

The EAPO proposal will not replace or change existing national systems for arresting debtors’ assets. Rather, it will constitute an alternative European procedure for creditors, and is essentially protective in nature. It will become law following adoption by the European Parliament and by EU member states. A final agreement is expected soon.

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Three European firms win Angola deepwater deals

Three European companies have won contracts for almost half the value of Angola's $16 billion ultra-deepwater Kaombo oil project, confirming a trend toward bigger

Litigation Can Cost Shipbrokers an Arm & a Leg

A survey of London solicitors by specialist intermediaries insurer ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts,

Scorpio Tankers' Latest Sale & Purchase Deals

Scorpio Tankers says it recorded a gain of US$51-million from the sale of the 7 VLCC newbuilding contracts announced earlier. In March 2014, the Company received

Government Update

South Korean Ferry Incident Update

Almost 100 ships, 18 helicopters involved in rescue; as many as 340 people from one school thought to be on board. Accident may be South Korea's biggest in 20 years.

Three European firms win Angola deepwater deals

Three European companies have won contracts for almost half the value of Angola's $16 billion ultra-deepwater Kaombo oil project, confirming a trend toward bigger

First Crude Lifting in 9 months at Libya's port of Hariga

A tanker has started loading crude at Libya's eastern port of Hariga for the first time in nearly nine months, after a federalist group agreed to re-open it last week,

Logistics

First Crude Lifting in 9 months at Libya's port of Hariga

A tanker has started loading crude at Libya's eastern port of Hariga for the first time in nearly nine months, after a federalist group agreed to re-open it last week,

Hong Kong Tin Hau Festival

The Tin Hau Festival at Tai Miu Wan will be celebrated this year on 22 April 2014. Coxswains, owners and operators of local vessels are advised that arrangements

Med Urals Market Awaits Short May Loading Schedule

Activity in the Russian Urals crude market froze on Tuesday as traders said they were awaiting the first loading dates for May for signs of how much supplies from

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1307 sec (8 req/sec)