In order to provide an avenue for offering knowledge to financial institutions in respect of the area of maritime law and practice, with particular focus on the ‘ship arrest procedure’, Olisa Agbakoba Legal (OAL), a leading law firm in Lagos and highly steeped in the field of maritime law and practice held its inaugural quarterly Maritime Master Class Series (MMCS) during the week.
The event was attended by participants from financial institutions that were the intended target audience.
According to Head, Maritime Unit OAL, Dr. Oluwole Akinyeye, “It is recognised that financial institutions provide finance to shipowners for various maritime business activities, most especially in the area of ship building, ship mortgage and ship purchase. It is also understood that conflicts could arise between both parties in respect of the loans provided. In such respect, the financial institution concerned would definitely be interested in how it could recover its loan facility from any defaulting shipowner.
“A crucial tool available to such financial institution is the possible arrest of the ship in respect of which a loan has been provided.
“The MMCS therefore provided an opportunity for sensitizing the legal departments of various financial institutions about the dynamics and intricacies of the ship arrest procedure. The MMCS provided detailed knowledge of the options open to the financial institution/creditor, taking into cognisance that there could be other competing creditors.
“Further insight was provided into where a financial institution/creditor stood within the scheme of such competing creditors. Consideration was also given to the due diligence measures that ought to be taken in future by financial institutions in the granting of loan facilities to shipowners, in order to ensure that such loans could be recouped, with appreciable returns”.
OAL said it would be holding subsequent Maritime Masterclass Series on a quarterly basis which will address various topical issues in maritime law and practice.
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