To bid or not to bid: Credit bidding in vessel sales pendente lite

Credit bidding is the process whereby a lender, with a secured charge over a borrower’s asset, bids on that asset using the very debt that is owed by the borrower to the lender. The circumstances are usually foreclosure of a lending position against a borrower.

In the maritime sector, this process often takes place in the context of forced judicial sales of vessels pendente lite (i.e., during the course of litigation) and frequently before judgment is obtained against the borrower shipowner.

Filed under:
USA, Insolvency & Restructuring, Shipping & Transport, Reed Smith LLP
Authors:
Nadia Macci , Jody Wood , Charles G. Weller , Robert A. Wilkins
Location:
USA
Firm:
Reed Smith LLP
Courts in New York and Singapore reach opposite conclusions on the validity of interpleader applications arising out of the OW Bunker bankruptcy

On 7 November 2014, OW Bunker A/S (“OW”), a global supplier and trader of marine fuel, filed for bankruptcy in Denmark. Further bankruptcies of OW subsidiaries and affiliates swiftly followed, including the bankruptcy of certain U.S. and Singapore-based OW entities.

Filed under:
Singapore, USA, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Injunction
Authors:
Charles G. Weller , Sally-Ann S. Underhill , Siân C. Fellows , Danielle Anderson
Location:
Singapore, USA
Firm:
Reed Smith LLP