|Monday, December 18, 2017|
|Loan||A three year $5,100,000 loan at 15% rising to 18%.|
|Collateral||Cruise Ship "Enchanted Capri" fitted out as casino, with assignment of charter receipts|
|Guarantors||Other companies in international group, and owner personally.|
|Purpose||The owner wanted the loan to finance the purchase and refurbishment of an additional ship.|
|Exit strategy||We expected the owner to refinance the loan, failing which we would be paid off out of the charter hire over the next three years.|
|Outcome||The charterer's business failed due to problems with other cruises, and it
disclaimed the charter in its bankruptcy. The ship was arrested in New
Orleans for non-payment of crew wages and supplies. We bought the
vessel at the Marshal's sale. We then found that the ownership of the
vessel was claimed by the government of the Ukraine, and litigation,
which we eventually won, lasted for about four years. Our attempts to recover from the
assets of the borrower were complicated by his "death"
evidenced by a forged death certificate (and an empty coffin, on
exhumation). He later "jumped" from a window while under arrest in the
Ukraine, and did not survive his surprisingly extensive injuries.
Meanwhile, after a false start where we chartered the ship to what turned out to be a bankrupt, we obtained a satisfactory charter, and our ship is earning its keep in the Gulf of Mexico playing host to oil rig construction workers.
|Further Information||The Enchanted Capri is fully SOLAS 2010 compliant, and is available for sale or charter with delivery in early 2006.|
© Pubsy.com - all rights reserved
Textures courtesy of the Absolute Background Texture Archive