Ship Finance

Course overview The global industry of ship finance is greatly affected by today’s everchanging economic climate. The technical and complicated issues surrounding it, as well as the many taxation liabilities involved, can make ship finance a potentially expensive minefield. However, despite the risks involved, ship finance can be one of the most profitable ventures that a financial institution can undertake. With the correct finance structure and meticulously prepared loan and insurance documentation, many of these liabilities can be identified and accounted for. This Euromoney Legal Training course, 'Ship Finance' is organised in association with leading specialist ship finance lawyer Sue Wright, aims to provide an understanding of the documentation involved and how this can be used to minimise the inherent risks and liabilities in such activities. You will return to your office equipped with the knowledge and skills required to operate effectively in the potentially lucrative field of ship finance. Summary of course content The ship finance market Flags and ship registration The basic security Enforcement The security documents Insurance covenants Trading the ship The loan – who is the borrower? Due diligence, conditions precedent and closing Newbuildings Security – other issues The loan agreement Other financing structures Methodology As with all Euromoney Training courses, this programme uses case studies and practical exercises to ensure that you leave the course, ready to apply your new knowledge. Who should attend this training course? This course will provide invaluable information to all involved in ship finance, especially: Shipping executives Lending bankers Risk advisors Lawyers in banks Lawyers in shipping companies Lawyers in private practice
Day 1 The ship finance market What makes ship finance different? International nature of the business Some hedging options Transaction types Flags and ship registration, security, second hand and newbuilding National, offshore and open registers Bareboat registration and the lender’s perspective Basic security for second hand purchases Document structure Security for newbuilding finance Glossary Loan agreement preliminary issues We will look at the structure of the documentation and how the different provisions interrelate. We will also look at issues related to who should be the borrower and at some key definitions in the documents. Administrative provisions including due diligence and closings Review of administrative section of loan agreement Where should due diligence be conducted? What should the legal opinion say? What should the conditions precedent be? Payment letters and simultaneous closings in different locations Day 2 Representations and repeating representations Ship covenants re good housekeeping Safety (ISM code) Security (ISPS Code) and environmental issues including: MARPOL OPA Other ship covenants Value Security of mortgage Information Insurance In this section we will look at the standard insurance risks and at the insurance covenants included in the security package and the reasons behind them. Issues covered will include: Captive insurance companies and reinsurance The role of the letter of undertaking Fleet policies Mortgagee's interest insurance Brokers and clubs The Norwegian insurance market Insurance covenants Insurance terms Letters of undertaking Application of proceeds Special purpose company covenants Who to lend to? Waiver of surety rights Restrictions on Business focus Dealing with assets Movement of cash Separateness covenants Events of default and boilerplate Day 3 The impact of charterers Covenants Security for payment Impact on mortgage Assignments Review collateral assignments and application of funds Guarantees and other security Enforcement Lender's options Advantages and disadvantages