| Author | Sauvage, Pierre |
| Call Number | AIT Proj. no.SM-05-09 |
| Subject(s) | Shipping--Finance
|
| Note | A project study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | The method of obtaining finance for ships may be summarized in these words. The bank advances to one or more owning companies a large sum of money. It of course requires security. It will take a mortgage on the ship for that security. It may take other mortgages on other ships for the same security. If the ship, as often happens, is about to be time chartered, then the bank will take an assignment of the time charter in order that the bank as assignee can benefit from the time charter in order to reduce the mortgage debt. In addition it will take an assignment of insurance in order that in the event of total or partial loss of the ship the bank as the lender may be suitably secured... The effect of this is to ensure that the lending bank is completely secured against the insolvency of the borrower who intends that the bank shall obtain complete priority over the claims of other creditors against the borrower. The main risks implied in shipping finance that are the corporate risk, the financial risk, the asset risk, the cash flow risk and the country risk need a special attention during the analysis and structuration of an asset-based deal. The major risk of the banker is the financial risk because no banker is ever capable of guaranteeing that his client will be as solid ten years after the conclusion of the transaction. |
| Year | 2005 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Kouwenberg, Roy; |
| Examination Committee(s) | Venkatesh, Sundar;Kauranen, Ilkka; |
| Degree | Project (M.B.A.) - Asian Institute of Technology, 2005 |