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

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

Government Update

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Logistics

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

Antwerp Port Achieves Highest Throughput

The port of Antwerp handled a freight volume of 148,344,168 tonnes during the first nine months of this year. That’s 3.7% more than the same period last year. Both

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1629 sec (6 req/sec)