Bareboat charter: option to buy on a turn-key basis

Interlegal law team helped our Client in complex procedure for vessel purchase under bareboat charter.

Our Client has agreed with investor on vessel purchase under the scheme of bareboat chartering with an option to buy. At that moment, the vessel was owned by a third person related to investor.

Interlegal task was to provide as soon as possible all the necessary contractual and documentary basis for the purpose of bareboat chartering the vessel with an option to buy on the same date as the vessel transfer from the previous owner to the investor.

For that purpose, we had to draft a detained Bareboat Charter jointly with supplementary agreements facilitating the guarantees whereon the Parties had agreed, following arrangement of such agreements with terms and conditions of the Vessel Sale & Purchase Contract between the investor and the Seller.

Also, for the purpose of the vessel full-scale operation, we had to provide a set of documents required by the vessel flag state, in particular, for compliance with ISM and ISPS Codes, following arrangements of all such details with the bareboat registration state.

With regards to the Client’s desire to use the vessel, inter alia, in the Ukrainian waters, it required duly execution of guarantees for the Investor concerning war risks.

Traditionally for shipping business, such work required for communications and agreements with partners and governmental bodies of six countries.

That was a good challenge, because we help our clients to launch and to develop their business.

Interlegal associate attorney Mykola Kozachenko, managed by partner Alexey Remeslo, led the case.