Managing problem shipping loans can be time consuming and distracting; the use of Quantum to supplement the client’s own team ensures that normal lending activities and new opportunities do not have to take second place because of a crisis work out situation with a small portion of the portfolio.
Jean Richards, Quantum’s Chairman, has been providing commercial assistance to shipping investors and bankers since 1984 in her former role as Director of Fairwind Shipping Ltd and more recently at Quantum.
We can provide strategic assistance with due diligence, vessel inspection and asset valuation, and risk appraisal at commencement of restructuring and can provide management support when practical actions need to be taken. Finally, when needed, we can operate as the de-facto owner of the assets buying back from auction to trade into a better place in the shipping cycle.
Commercial Management Services are provided through our sister company SecondWind Shipping Ltd
Quantum is well placed to provide an independent review of a complete shipping portfolio at an early stage in a down cycle to highlight those vessels/owners most likely to be at risk in a prolonged shipping slump. We would draw on historical data, current market trends, vessel specifics, purchase price, chartering strategy, chartering relationships and extensive commercial experience to identify highest risk companies.
We can also work with loan officers to develop a crisis strategy in order to facilitate swift actions when problems do arise.
For more information, refer to our Valuation service
A visit to an owner’s office at an early stage can assist the owner in preparation of a realistic cash forecast to present to the credit committee as the basis of restructuring a defaulting loan. The cost of the activity would be dependent on the size, age and type of shipping fleet.
For more information, refer to our Due Diligence services
Strategic Review – Repossession or Support the Owner
Part of the strategic decision making process of a work-out involves establishing the cost effectiveness of a repossession strategy and the real costs of putting an asset through judicial sale at auction.
Quantum’s Chairman, Jean Richards, has been involved in auctions in approximately 10 jurisdictions and has twenty years of work-out experience to assist lenders in finding the right solution.
As one would expect, we understand the need for absolute client confidentiality. Please contact us for more details on our work-out services, provided in conjunction with our sister company SecondWind Shipping Ltd
Full Crisis Management
Quantum has set up a network of professionals able to assist on the full range of ship owning services from full technical to broking and commercial management, and custodial management. With personnel who have more than thirty years of ship owning, broking and operating, we are able to act as commercial manager and full de-facto owner when the need arises.