Euromoney Legal Training

Course overview

The global industry of ship finance is greatly affected by today's ever-changing economic climate. Furthermore, the often technical and complicated issues surrounding it, as well as the myriad of 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

 

 

 

Supporting publication

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

• Sue Wright

  Sue is a solicitor with over 20 years' experience in international banking transactions, including syndicated loans, subordinated debt, structured finance and tax driven transactions. Sue was a partner in the banking department at Norton Rose for 8 years and was responsible for training banking assistants in Norton Rose for 2 years. Sue has been highly recommended as one of the leading experts in her field by Legal 500 and by Chambers. Sue was head of Professional Development at Herbert Smith and is now running an independent training consultancy specialising in training in international banking transactions and structured finance.

  Courses run by this instructor

  • International Secured Lending
  • Module 1: International Loan Documentation
  • Module 2: Advanced Loan Documentation

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

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