Debt recovery from the vessel after change of shipowner

13 февраля 2018 г.: ru 2 en 26 февраля 2018 г.: ru 2 12 июля 2019 г.: en 1 всего: 127 09.11.16

The Client, one of the leading ship repair entities in the Black Sea Region, applied to Interlegal due to full non-payment by the customer, shipowner, of the vessel repair been performed and accepted by the customer.

Situation was complicated by the fact that the customer sold the vessel to third persons and failed to notify the Client. After receiving the demand for payment the customer stated that upon the transfer of such ownership rights all requests related to payment for the vessel repair shall be addressed to the new shipowners.

In addition, under general rules provided, inter alia, by the International Convention on Maritime Liens and Mortgages 1993, to which Ukraine accessed in 2002, debt for repair work shall not follow the vessel. In such a way, having sold the vessel to new owners, the former shipowner may avoid responsibility for the debt for repair work. This problem often arises under other debts related to the supply to vessels.

To settle the dispute, the Client applied to Interlegal.

Interlegal lawyers analyzed the terms of the vessel repair contract and the customer’s guarantees provided to the ship repair entity. Situation might have been settled by means of negotiations between the Client, the customer and the new shipowners, following the customer’s additional guarantees. Interlegal lawyers developed legal arguments which served as grounds for such additional guarantees. In addition, the motivated claim was drafted and addressed to the shipowners.

As the result, payment for the vessel repair was made in full, according to the payment schedule agreed by the parties. The vessel was delivered to the new shipowners.

Interlegal experts Karyna Gorovaya and Olena Ptashenchuk led the case.



  • Force majeure: critical view2020.03.27

    The Client applied to Interlegal for assessment of presence / absence of force majeure in the framework of its contractual relations. Hav...

    show more
  • Interlegal lawyers arrested the vessel for ship repair indebtedness2020.03.24

    Interlegal lawyers arrested in Kherson Sea Port water area the vessel flying under foreign flag. The Client applied to Interlegal on ship...

    show more
  • Will we face more difficulties in contract performance?2020.03.23

    As expected, global quarantine due to COVID-19 pandemics essentially affected shipping and international trade in Black Sea Region. For t...

    show more
  • Banking re-compliance for the current bank clients2020.03.16

    It is not a secret for international business company owners that banking compliance becomes a more complex procedure covering the wider ran...

    show more
  • Causal fact recognition by the court2020.03.03

    A Client applied to Interlegal for legal assistance in the framework of Personal Attorney Service. As found out in the process of inherit...

    show more
  • Partnership agreement in the framework of educational project2020.03.02

    Gentleman’s agreements are widely spread in the Ukrainian business practice. In such situations business partners, while holding negotiation...

    show more
  • Interlegal won ICAC arbitration proceedings for the Client, amounting to 85,000 EUR2020.02.20

    An international company – dairy product trader – applied to Interlegal upon dispute settlement between the Client and the Debtor arisen fro...

    show more
  • Interlegal lawyers won LMAA arbitration amounting to 460 thousand USD2020.02.17

    A foreign company – ship manager and time charterer applied to Interlegal upon the dispute with vessel owner concerning refund of fleet fina...

    show more
  • Interlegal supported motor yacht Sale & Purchase2020.02.17

    Interlegal regular client filed a request for legal support of motor yacht Sale & Purchase (28 meters long, GRT 160). The sold yacht...

    show more
  • Interlegal assisted in vessel re-bareboat chartering2020.02.12

    The Client as charterer applied to Interlegal for legal assistance in vessel re-bareboat chartering due to her unlawful withdrawal by the Sh...

    show more