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Legal Update

The restructuring of non-performing shipping loans

– Learning from experience in the real estate crisis
26 February 2014
Mayer Brown Legal Update

European banks account for approximately three-quarters of the global ship financing market of approximately USD 475 billion, with German banks having by far the highest exposure compared to their European competitors. Banks in Scandinavia and the United Kingdom follow. As a result, German banks are particularly exposed to any negative market developments in the shipping industry. Although, there are signs of recovery in shipping markets, this only applies to certain sectors.

For lending banks the question arises whether there are other methods of portfolio management besides the traditional methods, such as refinancing of an expiring shipping loan or enforcing collateral. From a strategic and risk management point of view as well as with respect to liquidity and equity management, it may be an interesting option to sell shipping loan portfolios as a whole to investors.


  • Bill Amos
    T +852 2843 2282
  • Maggie C. K. Cheung
    T +852 2843 2450
  • Tom Pugh
    T +852 2843 2309
  • Richard J. I. Stock
    T +852 2843 2368
  • Dora K. P. Ying
    T +852 2843 2302
  • Frederick D. Hyman
    T +1 212 506 2664

Related People

  • San San Peh
    Legal Professional / Consultant, Head of Shipping Services
    T +65 6327 0232
  • Dean A. Young
    Legal Professional / Consultant, Senior Consultant
    T +852 2843 4366
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