Greek Shipping News Cuts
Week 25 - 2009

 

Who owns what in Greece's ASE-listed domestic ferry sector

---The complicated, ever-changing and often over-lapping ownership of the largest companies operating in the Greek domestic roro-pax sector was highlighted in the latest survey of the Greek ferry market by XRTC Business Consultants.
The study, coinciding 10th anniversary of the founding of XRTC by George Xiradakis, also showed just how much control a small number of investors have over the five principal ferry companies, all of which are listed on the Athens Stock Exchange (ASE).
When the review was presented, June 17, the ownership role of Greek equity group Marfin Investment Group (MIG), Italy's shipowning interests, the Grimaldi Group and John Vardinoyiannis interests, was clear. Cyprus listed Sea Star Capital 29.9% owned by Vardinoyiannis, 12% by the Victor Restis-controlled Restis Group and 6.9% by businessman George Frangos, held a 36.5% stake in Hellenic Seaways, the country's largest ferry operator, and a 32.5% stake in Anek Lines, which in turn has a 33.35% stake in Hellenic Seaways. The remaining 30.15% of Hellenic is owned by market investors. Crete-based Anek also has a 50.11% stake in private Crete-based operator, Lane. Morgan Stanley & Co has a 8.276% holding in Anek, with the remaining 59.23% in the hands of investors.
Crete's other major ferry company. Minoan Lines is 85% owned by Grimaldi, with the remaining 15% in the hands of investors.
The Attica Group is 89.14% owned by Andreas Vgenopoulos-controlled MIG, with the just under 11% held by other stakeholders. In turn, Attica owns 100% of both Blue Star and Superfast Ferries.
Lesvos-based NEL Lines is 20.14% owned by its md Apostolos Ventouris, while Allianz SE has a 12.56% stake and Greece's Millennium Bank has a 5.6% stake, with the rest, 61.7%, held by various investors.
The northern Greece-based Saos ANES is 88.34% owned by Fotis Manoussis with the remaining 11.66% shared out.
Source: www.newsfront.gr


Greek council against GHG emissions tax
---Wednesday, 17 June 2009. The Greek Shipping Co-operation Council has reiterated its opposition to any tax or 'market based instrument' on greenhouse gas emissions from shipping, options which are both up for forthcoming discussion at the IMO and the UN FCCC meeting in Copenhagen later this year.
"The maritime sector, on the basis tonne miles of cargo carried, is by far the most fuel efficient means of transport and produces the least harmful atmospheric emissions of any mode of transport," GSCC chairman Epaminondas Embiricos said. "Emissions from ships are different from those typical of other industry sectors. They are not of the same nature nor do they have the same impact on the environment, as those from other industrial sources and modes of transport."
"A number of eminent scientific studies show that this is the case and that emissions from ships have a net cooling effect," he claimed. "This is due to the fact that vessels' emissions include aerosols such as OC and SO4, which seed clouds, reflect solar radiation and cause cooling. In fact the cooling effect of SO4 is 200,000 times greater than the warming effect of CO2. Ships burn fuel containing sulphur, when on the high seas and away from populated coastal areas. Indeed reducing these emissions on the high seas would be counter-productive. Shipping's global cooling effect has been accepted by the IMO Study Group, which considered the matter."
"The purported aim of a tax on shipping emissions is to create an incentive upon shipowners to improve their CO2 emissions performance. However, such economic measures should rather be directed at those interest groups responsible for a rise in emissions through increased trade. Shipping would clearly be wrongly targeted as it is not the root cause of any emissions increase but has only reacted and increased its activities in response to world demand for increased globalisation and trade. If any economic instrument is to be introduced to reduce carbon emissions from ships, it would need to target changes in behaviour on the part of consumers, who presently demand an ever wider choice of imported goods in competition with domestic products. Proposals for changes in behaviour by the public are of course not the most politically popular."
"However the IMO would do a disservice to the public interest if it allowed the misconception to gain ground that the desired changes can be achieved without any involvement on the part of the consumers, and simply by regulation of the maritime industry. The only likely effect of such measures would be to distort competition between shipping and other modes of transport in a manner which could increase, rather than reduce, emissions from transportation as a whole."
Source: www.mgn.com


Piraeus Port Authority: Decisions Of The Regular General Meeting Of Shareholders
---Thursday, 18 June 2009 - 10:33. The Company in accordance with the article 4.1.3.3 of Athens Exchange Regulation announces that on Wednesday 17/6/2009 took place in its headquarters the 9th Annual Regular General Meeting of shareholders of PPA S.A.
In the General Meeting were present 39 shareholders representing 18.972.608 shares out of 25.000.000 shares or percentage 75,89% of issued share capital.
The regular General Meeting after discussion took the following decisions:
Approved the Annual Financial Report of the 9th corporate use from 1/1/2008 to 31/12/2008.
Discharged the Members of the Board of Directors and the Auditors from any responsibility for indemnification in relation to the 9th corporate use. (1/1/2008 to 31/12/2008)
Approved the remunerations and compensations of the Board of Directors members for the year 2008, according to the article 24 paragraph 2 of Law 2190/1920, as it is in force and pre-approved their remunerations-compensations for the corporate use 2009.
Elected for a five years term the new Board of Directors as follows : Behrakis Dionysios, Anastassopoulos Nikolaos, Mantzouneas Elias, Gioldaseas Elias, Papakiriazis Nikos, Elias Ioannis, Nanopoulos Vasilis, Liakos Evagelos, Tsihritzis Mihalis, Vagianos Andreas, Balabanidis Eustratios, Nouhoutidis Georgios, Fassoulas Panagiotis. Mr Vagianos Andreas and Mr Gioldaseas Elias were appointed as independent members.
An Audit committee was elected in accordance with Law 3693/2008, with the following members Mr Vagiano Andrea, Gioldasea Elia and Elia Ioanni.
Source: http://english.capital.gr/news.asp?id=758841


Greeks take dry-buying spotlight
---At least four panamax bulkers are said to be Greek bound.
Greek owners are increasingly keen on buying panamax bulkers amid signs that Chinese buyers may be losing some of their appetite for purchases.
Greek buyers have been linked to at least four panamax purchases with indications that some of the country's more conservative players are on the move One market insider added: "It now seems to be the turn of the Greeks to spend, which probably signals that there is something different expected of the market in the next few months. The Greeks have more experience with recessions and will be better informed to know whether there is any real end to the market downturn.
"But it certainly feels like the mini-bubble in China has burst." Adelfia Shipping of Greece paid $35.8m for the 76,000-dwt bulker Boomerang (built 2004) ( see story, below ).
Oceanfreight has reportedly bought the 74,000-dwt Maddalena D'Amato (built 2001), paying $25.5m for the ship.
Euroseas Carriers has been linked to the purchase of the 69,000-dwt Four Coal (built 1999), which was reported sold last week for $27.5m. The deal is said to include a time charter running until January at $25,200 per day. The Four Coal last week was reported fixed by Deiulemar for three to five months from June at $26,000 per day.
Market insiders are divided over the destination of the 76,000-dwt Torm Tina (built 2001).
Danish giant Torm booked an $11.5m profit on the sale of the eight-year-old panamax bulker, which went for $30m.
Some sources suggest the ship went to China but it is more likely bound for Greece with Bright Navigation being one name mentioned by brokers.
The 76,000-dwt bulker Bonita (built 2001) is said to have been sold to Modion Maritime of Greece for $25.5m in a deal that was concluded some time ago. Some sources also suggest the ship did not inspect too well.
Greek owner Omicron Ship Management has disposed of an elderly panamax, the 63,000-dwt bulker Nikos O (built 1982), for $3.75m. The ship is due for special survey in 2011. Omicron bought the ship for $4.6m in 2003. It has been marketed for sale by Thenamaris.
The Greek interest has taken the spotlight off China where brokers say buyers have lost their appetite for more modern ships in favour of older and cheaper vessels.
Market insiders say China has now resumed a sale-and-purchase (S&P) trend more in tune with the economic downturn.
The 151,000-dwt bulker Cotswold (ex- China Fortune , built 1986) was sold for around $14m by Zodiac Maritime after being put on the market by Clarksons last week.
The 69,350-dwt Far Eastern Silo (ex- Frontiers , built 1990) is also believed to have been sold after having been on the market in China for some time.
The vessel has been in the fleet of Taiwanese owner ET Internet Technology Corp since it came out of Imabari Shipbuilding in Japan. Market insiders say it would have gone for around $15m, considering the recent prices of similar-size vessels.
The 24,850-dwt open-hatch bulker Hilal II (ex- Yin Kim , built 1981) was sold by Turkish owner Hilal Denizcilik Ticaret ve Sanayi to Chinese interests for $2m.
Two other ships bound for China are the 36,800-dwt Cenk Kaptanoglu (built 1983) and 34,600-dwt Marilla (built 1982), which went for $4m and $2.68m, respectively.
Brokers also say the reported sale of Hong Kong-based Cido Shipping's 76,600-dwt Fortune Ocean (built 2006) to Indian buyers for $39m failed last week.
By Trond Lillestolen and Neil Connor Oslo and Shanghai
Published: 23:00 GMT, 18 Jun 2009 | last updated: 10:01 GMT, 19 Jun 2009
Source: www.tradewinds.no


US court remands Spain's $1bn Prestige claim
---Rajesh Joshi, New York - Monday 15 June 2009
Spain has argued that such immunity is restricted to servants or agents of the shipowner including crew; pilots; charterers; salvors; or persons taking preventive measures. ABS is an independent contractor and not a servant or agent, and hence is undeserving of the exemption, Spain believes.
Spain has previously argued that the district court ruling ignores case law in the US that has established that the CLC is not applicable in a lawsuit brought in the US for an oil spill in foreign waters because the US is not party to the Convention. The most famous is the case involving the tanker Amoco Cadiz, which grounded off France in March 1978.
Spain brought the action against ABS in 2003, for its alleged negligence in certifying the 1976-built, 81,564 dwt tanker Prestige as fit. The tanker sank off the Spanish coast in November 2002, causing environmental damage for which compensation was sought.
Source: http://www.lloydslist.com/ll/news/viewArticle.htm?articleId=20017663332


Sea Diamond. 155 cubic meters of fuel...
Source: http://www.ekathimerini.com/4dcgi/_w_articles_politics_100004_17/06/2009_108134, DESPINA ALEFRAGI/EUROKINISSI


Euroseas selects renewal targets
Aslides said company management closely watches the major indices but, before entering into deals, conducts an in-depth analysis that balances residual value, technical risk and, not surprisingly, charterer credit. He also pointed to a tendency for avoiding segments with outsized vessel supply growth.
Although Euroseas has been listed only four years, its history dates back to the 1870s, when ancestors of chairman Aristides Pittas (whose family holds roughly 35% of shares) founded the company. A management arm, Eurobulk Ltd, is actually the fourth generation of the Pittas family managing second-hand dry cargo ships. With this traditional shipping background comes a hands-on management style, and also a willingness to trade assets.
Source: Fairplay International Shipping Weekly - Companies 18 Jun 2009


Hyundai Samho agrees to later deliveries for Danaos
---Mopko: Hyundai Samho Heavy Industries has put off the delivery of five 12,600 teu containerships it is building for Greek owner Danaos Shipping by about 12 months. The five vessels had initially been due for delivery between February and October 2011.
Danaos has also requested delivery postponement for five 8,530 teu vessels being built by Jiangnan Changxing Heavy Industry and five 6,500 teu vessels being built by Hanjin Heavy Industries & Construction by an average 200 days and about three months, respectively. [19/06/09]
Source: http://www.seatradeasia-online.com/News/4272.html


But the world has changed. And today the listed shipping companies have to get by with plaudits from analysts when they wave goodbye to deposits but slash CAPEX, negotiate the reduction of a time charter but extend the duration and get the inevitable waivers from their banks. For those of us involved in the industry it is almost hilarious to imagine that a top shipping bank (and the syndicate of which it is agent) would not give a waiver to a shipping company with modern assets (which most of them have), good income stream (which most of them have albeit with the concern of charterer renegotiation), transparency (which all of them have, that being the nature of the public markets) and trusted management (which we hope they all have because if they have not it is not only the banks that should be worried).
Company EV/ EBITDA 2009 EV/ EBITDA 2010 EV/ EBITDA 2009 EV/ EBITDA 2010 EV/ EBITDA 2010 EV/
EBITDA 2010
Morgan Stanley May 26 2009 Morgan Stanley May 26 2009 Cantor Fitzgerald
May 26 2009 Cantor Fitzgerald
May 26 2009 DRC
26 May 2009 DRC
May 26 2009
Dryships 7.5 6.1 6.9 6.1 6.4 6.3
Diana 7.4 5.7 7.8 7.8 7.5 6.1
Genco 6.5 5.3 5.7 6.5 6.1 5.1
Excel 10.1 8.3 11.5 13.5 8.9 8.7
Safe 5.4 5.9 4.9 4.9
Eagle 9.7 7.2 10.0 11.3 9.0 7.6
Star 4.2 3.5 5.3 5.4 3.6 3.9
Euroseas 8.4 5.5 7.6 6.7
Paragon 4.0 4.1 4.3 6.7 3.5 3.2
Average 7.0x 5.7x 7.4x 8.0x 6.2x 5.7x
What is EV/EBITDA?
This article will take a more detailed looked at Star Bulk Carriers (SBLK), one of the companies which has the lowest ratio in the table above. Is Star indeed under valued? Is Star a good candidate for takeover? Or is there something else lurking that causes the low ratio from analysts?
Star Bulk Carriers
Fleet Overview (from Star Bulk web site 25th May 2009)
Vessel Name Type DWT Built Employment Time charter
Rate(Gross)(1)
Star Alpha Capesize 175,075 1992 COA COA (4)
Star Beta Capesize 174,691 1993 TC until Mar-10 $32,500
Star Sigma Capesize 184,400 1991 TC until Nov-13 $38,000 (3)
Star Ypsilon Capesize 150,940 1991 TC until Jul-11 $112,600 until Jul-09
$93,300 until Jul-10
$74,100 until Jul-11
Star Gamma Supramax 53,098 2002 TC until Jan-12 $38,000
Star Delta Supramax 52,434 2000 TC until Feb-10 $11,250
Star Epsilon Supramax 52,402 2001 TC until June-14 $25,500(2)
Star Zeta Supramax 52,994 2003 TC until Apr-11 $42,500
Star Theta Supramax 52,425 2003 TC until May-10 $11,300
Star Kappa Supramax 52,055 2001 TC until June -14 $25,500(2)
Star Omicron Supramax 53,489 2005 TC until Feb-11 $43,000
Star Cosmo Supramax 52,247 2005 TC until Feb-11 $35,615
Total 12 1,106,250
(1)Represents the gross daily rate
(2) Time charter agreement includes a 40%-60% index-based profit sharing arrangement under which Star Bulk will be paid by the charterers, in addition to the above charterhire, 40% of the difference by which the Baltic Supramax Index (BSI) rate exceeds $30,500, effective as of April, 2011.
(3) Time charter agreement includes a 50%-50% index-based profit sharing arrangement under which Star Bulk will be paid by the charterers, in addition to the above charterhire, 50% of the difference by which the Baltic Capesize Index (BCI) rate exceeds $49,000 effective as of March 1, 2012.
(4) COA: Contract of Affreightment. Star Alpha serves Star Bulk's COA with VALE.
Another recent development is the announcement that the company has established a 100% owned subsidiary called StarBulk SA to assume the technical management of the fleet. Four vessels have been taken in-house to date and by year end or sooner the whole fleet will be technically managed in-house. Worth remembering is that Akis Tsirigakis, the CEO, made his reputation in ship management prior to his public life, so this development should be positive for the company.
So where is the weak link in the chain? What about the charter counterparties? Well, the list is below. In line with strategy there is no charterer with more than two ships.
Star Alpha Capesize COA with Compania do Rio Doce (VALE)
Star Beta Capesize Dieulemar
Star Sigma Capesize Pacific Bulk
Star Ypsilon Capesize TMT
Star Gamma Supramax Korea Line Corp.
Star Delta Supramax GMI Ltd.
Star Epsilon Supramax Ishaar Overseas (subsidiary of Bhatia Coal, India)
Star Zeta Supramax Norden A/S
Star Theta Supramax Cargill
Star Kappa Supramax Ishaar Overseas (subsidiary of Bhatia Coal, India)
Star Omicron Supramax GMI Ltd.
Star Cosmo Supramax Korea Line Corp.
If EV/EBITDA is an accurate measure of valuation then the company does appear undervalued.
Source: by Kevin Oates for Freshly Minted 18 June 2009 www.marinemoney.com


Safe Bulkers, Inc. Announces the Sale of Panamax Class Vessel
Fleet Update
The Company also provided additional details regarding its entry into a resale agreement to acquire a Capesize class newbuild vessel to be delivered in April 2010, which had been previously announced in a press release dated June 8, 2009. The acquisition price for the 177,000 dwt newbuild is $63 million, including commissions, and the vessel will be delivered by the Shanghai Jiangnan Changxing Shipbuilding Co., part of the SWS group.
Management Commentary
About Safe Bulkers, Inc.
Company Contact: Dr. Loukas Barmparis President Safe Bulkers, Inc. Athens, Greece Telephone: +30 (210) 899-4980 Fax: +30 (210) 895-4159 E-Mail: directors@safebulkers.com
Source: http://www.safebulkers.com/sbpr061909.pdf


Dryships Announces it has Signed Waiver Agreement with Dnb Nor for $86 Million of Debt
---Thursday, Jun 18, 2009. Athens, Greece - DryShips Inc. (NASDAQ:DRYS) (the "Company" or "Dryships"), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced today that it has signed an agreement with DnB NOR on waiver terms for $86 million of our outstanding debt.
Source: http://www.dryships.com/


M/V Hellenic Sea Time Chartered at US$16,500 per for 4-6 months
transportation services for dry bulk cargoes, announces today that it has entered into a time charter
agreement with SwissMarine Corporation Ltd for the M/V Hellenic Sea for a period of minimum four to
about six months at a gross rate of US$16,500 per day.
The charter commenced on 11 June, 2009. The earliest expiration date is 11 October 2009.
The M/V Hellenic Sea is a 65,434 dwt Panamax built in 1991 at Jiangnan Shipyard, China.
Following the time charter of the vessel M/V Hellenic Sea, the estimated time charter coverage for the
remaining of 2009 is approximately 76% and 49% for the whole of
Source: http://www.hellenic-carriers.com/files/hc_15_06_09.pdf Hellenic Carriers Limited, Fleet Deployment Update


Excel Maritime Enters into Time Charter Agreement for the M/V Barbara at $23,000 Per day
Source: www.ExcelMaritime.com


Choice of Law Clauses, Enforcement of US Maritime Liens and Necessaries Suppliers
---
June 17 2009
Introduction
Background
Priorities Hearing
Priorities Appeal
Federal Court of Appeal
Dissenting Judgment
Supreme Court of Canada
Introduction
In Kent Trade and Finance Inc v JP Morgan Chase Bank (The Lanner) the Federal Court of Appeal ruled that a choice of law clause in a necessaries supply contract should be upheld unless there is a compelling case to be made that another jurisdiction has a closer and more substantial connection to the transaction.(1)
In The Lanner a US choice of law clause afforded suppliers the benefit of maritime liens, giving them priority over a mortgagee to the proceeds of a judicial sale of a ship arrested in Halifax. This is the case even though under Canadian law, a necessary claim is not a lien and would not normally outrank a mortgage. Thus, even if a supplier of necessaries is non-US based, the ship is not flagged or owned in the United States and the necessaries were not provided in the United States, a choice of law clause incorporating US law is sufficient to give the supplier a maritime lien in a priority hearing determined in Canada.
On June 4 2009 the Supreme Court of Canada denied leave to appeal the Federal Court of Appeal decision.
Background
The Lanner was a Greece-based panamax oil tanker sailing under the Liberian flag, owned by a Liberian corporation and managed by a Greek agent.
In August 2000 the vessel's owners borrowed US$27.5 million from JP Morgan Chase Bank and executed an assignment of all profits or revenues and a first preferred mortgage on the Lanner (and two sister ships) in favour of the bank. The mortgage was registered against the ship's title in Liberia.
The borrowers failed to make a series of required payments in 2002. In 2003 the ship was arrested in Halifax and sold by the Federal Court of Canada at the bank's behest. The proceeds did not cover the ship's debts. The bank was not the only creditor; a number of necessaries suppliers claimed maritime liens with priority over the bank's mortgage claim.
None of the three suppliers in the litigation was incorporated or based in the United States and none of their services was provided in a US port. However, each stipulated a US choice of law clause in its supply contract with the Lanner.
Under Canadian law, a supplier of necessaries to ships is accorded a statutory right in rem and the ranking of claims to the proceeds of a sale is decided by the law of the forum (lex fori). A statutory right in rem ranks below a mortgage, which, in turn, ranks below a maritime lien. Under US law, a necessaries supplier is afforded a maritime lien by statute.
The Federal Court was asked to assess the priority of claims by determining the appropriate choice of law and whether the foreign suppliers could assert maritime liens in the circumstances, simply by having made their contracts subject to US law.
Priorities Hearing
At first instance, a prothonotary of the Federal Court decided that the suppliers did not have maritime liens and ranked their claims behind that of the bank. He decided that because the bank was not a party to the supply contracts, the choice of law clauses did not dictate which jurisdiction's substantive law applied.
The prothonotary applied a conflict of laws analysis to each supplier's claim to determine which jurisdiction had the most substantial connection to the transaction, examining factors such as the vessel's flag state, location of supply and base of operations of the vessel. He concluded that US law was not applicable and, since no other law had been proven, applied the lex fori, which was Canadian law. He concluded that each transaction gave rise to only a statutory right in rem, which was below the mortgage in priority.
Priorities Appeal
The suppliers appealed. The review judge also concluded that the appellants had only statutory rights in rem and not maritime liens, and that the choice of law clauses would be determinative only if the vessel's owner was personally liable under the contract. The judge found insufficient evidence that the vessel's manager had authority to bind the owner to the supply contracts, since the management agreement was not before the court. She too applied the substantial connection test to the transactions and found that US law did not apply.
Even though it was unnecessary given her conclusion on the applicable law, the judge also considered whether maritime liens could arise in the circumstances. She decided that they would not, on the basis of preferred expert evidence which showed that US law would not provide a lien where the necessaries were supplied by a foreign supplier to a foreign ship in a foreign country.
Federal Court of Appeal
A majority of the Federal Court of Appeal allowed the appeal on the basis that US law did apply and that it would recognize maritime liens in the circumstances. The court ordered that the suppliers' claims be paid from the proceeds of sale of the Lanner.
Despite the fact that maritime liens arise by operation of law, the court's analysis led to the conclusion that the appropriate conflict rules to be applied were those of contract. The chief justice decided that, although maritime liens are in rem rights, a choice of law clause in a supply contract should govern maritime transactions and the rights which arise therefrom.
The express choice of law provision was held to govern the contract, although, citing Imperial Oil Ltd v Petromar Inc (CA),(2) the court acknowledged that, given the extra-contractual nature of maritime liens, it remained possible that where a maritime transaction is so closely connected to a jurisdiction, that jurisdiction's substantive law may be held to apply rather than the choice of law in the contract. Thus, in Imperial Oil, a US choice of law clause was held not to apply as the vessel registration, the residences of the shipowner and charterer, and the place of supply delivery were all in Canada. In The Lanner, no substantial connection was established to override the choice of law clause in the supply contracts.
The court then considered whether US law operated to establish maritime liens where a non-US supplier provided necessaries to a foreign vessel in a foreign port.
After reviewing a series of US district and appeal court decisions from a number of circuits, the court held that Trans-Tec Asia v M/V Harmony Container(3) was the latest expression of the law on maritime liens, despite the fact that a decision of one US circuit is not binding on another. In Trans-Tec the Ninth Circuit Court of Appeal held that a US choice of law provision in a supply contract afforded a lien to a necessaries provider even though there was no other US connection to the case.
The court concluded that the circumstances of Trans-Tec were analogous to those of The Lanner and ruled that the suppliers held maritime liens against the ship.
Dissenting Judgment
The dissenting judge dismissed two of the appeals and allowed the third on the basis of a different conclusion as to which law applied to the supply contracts.
The dissenting judge held that the law of the Ninth Circuit, which recognized a maritime lien in these circumstances, differed from that of the Eleventh Circuit, which did not. As three of the transactions at issue in The Lanner were not connected to either jurisdiction, proof of foreign law failed. Consequently, the lex fori (again, in this case, the law of Canada) applied and no maritime lien was established.
However, in one transaction the choice of law clause specified Washington state, which is in the Ninth Circuit. As a result, the dissenting judge applied Trans-Tec and would have allowed the appeal.
Supreme Court of Canada
On June 4 2009 the Supreme Court of Canada dismissed the bank's application for leave to appeal (without reasons). Therefore, the Federal Court of Appeal's decision is now the law in Canada: unless there is a compelling case to be made that another jurisdiction has a closer and more substantial connection to the transaction, a supply contract that contains a valid US choice of law clause will give a necessaries provider the benefit of a maritime lien in US law, which will outrank a mortgagee's claim in Canada.
For further information on this topic please contact M Clete Purcell or Jason Kostyniuk at Bull, Housser & Tupper by telephone (+1 604 687 6575) or by fax (+1 604 641 4949) or by email (mcp@bht.com or jrk@bht.com).
Endnotes
(1) 2008 FCA 399.
(2) 2002 3 FC 190 (CA).
(3) 518 F 3d 1120 (Ninth Circuit 2008).
Daniel M Getz, articling student, also assisted in the preparation of this update.
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Investment opportunities in Greece's tourism and energy sectors presented in Cyprus
The conference, at the Nicosia Hilton, promoted the advantages of Greece as an attractive business and investment destination to Cypriot businesspeople. Participating were 50 companies from the sectors of energy, tourism, real estate, and construction, as well as major financial institutions, all known for their interest in foreign markets.
Source: http://www.investingreece.gov.gr/default.asp?pid=25&la=1&n=128