Page 20: of Marine News Magazine (June 2015)

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COLUMN FINANCE … As the documents were being prepared, it was discovered that the restrictive covenants in BargeCo’s existing debt facility did not permit BargeCo to grant liens on its accounts, which would include its rights under the time charter, and its existing lenders were unwilling to waive this covenant for this transaction. Therefore, BargeCo concluded that it was not able to grant the assignment of HopperCo’s payment obligation under the time charter, as the leasing company was expecting.

H D ? N R … This approach had never been used before, to the knowl-

IGH RAMA OT EALLY

Ah, but not so fast. From the leasing company’s perspec- edge of any of the counsel in the transaction, each of whom tive, a critical component in this type of structure is the as- had more than 30 years of experience in maritime