Cherie Bock, Ruthanne Hammett, and Margie Krumholz have published an article in the St. Louis Bar Journal that details the key items that should be considered by any companies buying or selling vessels, or looking to finance such a transaction.
The article, “Strategies for documenting vessel acquisition and financing transactions,” appears in the Winter 2017 issue of the St. Louis Bar Journal.
“Whether parties are looking to sell one vessel or 1,000 vessels, well-written documentation setting forth the parties’ negotiated and agreed-upon terms is essential,” the authors wrote. “A well-written agreement anticipating and addressing the potential issues, in addition to what the clients thought were the “business terms,” will provide guidance in resolving any disputes and in the long run reduce the chances of litigation.”
The article lays out the basics steps in the vessel acquisition process, including representations and warranties, expenses and fees, taxes, and indemnification. It also provides background on how lenders typically approach due diligence and all the necessary documentation for the transaction, including security agreements, charters, and other considerations required due to the involvement of government agencies like the Coast Guard.
About the authors
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