Solve problems through local connections
On one project, after our Dutch shipowner purchased two 8000dwt MPP Newbuilding resale vessels from a Germany owner, the vessels under construction in China were arrested separately by one Chinese state-owned creditor and one Chinese bank A due to the financial problem of the yard. Then the Germany owner canceled the construction orders. In that case, the Dutch owner planned to buy the vessels directly from the Chinese creditors and the yard.
Negotiation of purchase price became an important but challenging part, to satisfy creditors, buyer, banks, classification society and yard. While the Chinese bank B wanted to minimize their loss on issued refund guarantees and claims from Germany owner and their Germany banks, the other creditors asked for certain amounts in order to lift the arrests, the classification society wanted payment for certificates upon delivery, and the buyer can only pay the reasonable prices, the negotiation process took place in days and nights. With our understanding of cultures and negotiation skills, we finally helped to reach prices each parties can accept.
However, the situation became further complicated because the yard faces challenge to go bankruptcy due to its debts from 10 banks. In order to deliver the vessels on time before the yard went bankrupt, as advisors we managed to get support from local government including the Mayor to hold the bankruptcy. The Mayor and other government officials also help to coordinate the settlement agreement between local banks.
Regarding refund guarantee claims between the Germany bank and the Chinese bank, we helped to reach agreement among them, including amount, time, terms and draft bank letter for payment.
Because this project involves two different maritime courts and several creditors, the legal process to lift asset has to be carefully arranged and well timed with vessel delivery. Leveraging our local connections again, we were able to approach the courts and have creditors to agree with the process.
In the end, the deals went through. We helped the owner reduce the purchase prices they previously need to pay. Most importantly, we leveraged all our local connections and knowledge to make the vessels delivery possible.
Negotiation of purchase price became an important but challenging part, to satisfy creditors, buyer, banks, classification society and yard. While the Chinese bank B wanted to minimize their loss on issued refund guarantees and claims from Germany owner and their Germany banks, the other creditors asked for certain amounts in order to lift the arrests, the classification society wanted payment for certificates upon delivery, and the buyer can only pay the reasonable prices, the negotiation process took place in days and nights. With our understanding of cultures and negotiation skills, we finally helped to reach prices each parties can accept.
However, the situation became further complicated because the yard faces challenge to go bankruptcy due to its debts from 10 banks. In order to deliver the vessels on time before the yard went bankrupt, as advisors we managed to get support from local government including the Mayor to hold the bankruptcy. The Mayor and other government officials also help to coordinate the settlement agreement between local banks.
Regarding refund guarantee claims between the Germany bank and the Chinese bank, we helped to reach agreement among them, including amount, time, terms and draft bank letter for payment.
Because this project involves two different maritime courts and several creditors, the legal process to lift asset has to be carefully arranged and well timed with vessel delivery. Leveraging our local connections again, we were able to approach the courts and have creditors to agree with the process.
In the end, the deals went through. We helped the owner reduce the purchase prices they previously need to pay. Most importantly, we leveraged all our local connections and knowledge to make the vessels delivery possible.