Shipyard Agreement

Apr 12, 2021 von

PART III. NEWBUILDING VESSEL FINANCING WITHOUT INTRODUCTION GARANTIE Whether or not we have an international financial crisis, the credit line is, as always, a valuable asset that is kept by companies and businesses around the world and appreciated, whether it is a multi-billion euro retail business or a new start-up. Shipyards and shipping companies are no exception. However, as noted above, given the time difference between payment and delivery and the considerable amounts associated with shipbuilding activity and related financing, the various bank repayment and bank payment guarantees that must be agreed by the buyer and the shipyard for the comfort and financial security of the other parties. If the buyer does not guarantee a line of credit for a bank payment guarantee or if the shipyard does not receive a line of credit for the repayment guarantee, most shipbuilding operations cannot be continued. On the other hand, if the buyer and the shipyard are closely linked or if the buyer and the shipyard can mutually assure each other that they have and will continue to have significant financial strength before the ship is delivered, it is not uncommon, in some cases, for the buyer and the shipyard to agree that there is no need for bank repayment guarantees. Although it is economically acceptable between the buyer and the shipyard that there is no need for bank guarantees and bank repayment guarantees, the persons who finance the buyer, in most cases, would submit claims for a guarantee of repayment by the site bank, after the results of their risk analysis, and then give the buyer as collateral for their benefit. The following example (simplified) is an exceptional case in which the buyer`s financing bank, purchaser and shipyard were able to design and design a structure that did not require a bank refund guarantee or bank guarantee for the shipbuilding project and its financing. However, please note that the buyer group and the shipyard below are closely linked and are both financially strong.

Similar structure has been adopted by some of our clients in shipbuilding transactions for a few times in recent years. The advantage is that the shipyard and the buyer could thus save their lines of credit for bank guarantees for certain other transactions. Conclusion of Stage 1 As long as the construction of a ship remains a complex technical process and as long as there is a significant gap between payment and delivery in order to adequately protect the interests of the various parties involved in a shipbuilding project and its financing, the logical consequence is, that the terms of shipbuilding contracts should be sufficiently detailed so that the many important practical questions that will arise during construction do not remain unanswered, while the terms of the loan and security documents should address and meet the relevant issues of the shipbuilding contract, as well as the many practical and legal questions that may arise when the lender imposes its guarantees on the buyer. , the shipyard, the buyer`s supervisory authority and/or the guarantor of the refund.

Verwandte Artikel

Tags

Share