Asset Finance in Brief

Latest from Asset Finance in Brief

March 8, 2021

The transition away from LIBOR is imminent and lenders and borrowers should be thinking about how this will impact on both new and existing finance transactions. As USD is the most prevalent LIBOR currency used in shipping transactions, this article focuses on the current position as it relates to USD LIBOR.…

Asset Finance in Brief

Distressed Assets – The opportunity for a bargain but pitfalls abound

By Gerald Licnachan, Matthew Gorman, Zi Han Shiah & Johnny Lim

July 2, 2020

Purchasing or investing in distressed businesses gives rise to complexities and considerations that are not typically present in ‘good book’ deals. Considerations for buyers and investors in such circumstances include the need to pay careful attention to structuring the transaction from the outset, the applicability of insolvency laws and the extent and duration of due diligence. Buyers should also be mindful of the extent of the seller’s and/or target’s distress, the underlying interests of stakeholders,…

Asset Finance in Brief

Staying afloat: managing liquidity in the COVID-19 fallout

By Rohan Soni & Deena Smith

June 30, 2020

Presumably everyone is tired of hearing about COVID-19. However, there is no doubt that its all-encompassing impact on the world’s economic activity has adversely affected most industries, including transportation, and has ultimately affected companies’ balance sheets. IATA reported that in April 2020, global aviation demand was down by 94.3 percent compared to April 2019. By the end of May, however, daily flights had risen by 30 percent globally,[1] showing the aviation industry is attempting…

Asset Finance in Brief

New regime for ship leasing tax concessions in Hong Kong

By Lianjun Li, Peter Lee, Tat Pan & Arthur Lam

June 29, 2020

On June 19, 2020, the long-awaited Inland Revenue (Amendment) (Ship Leasing Tax Concessions) Ordinance 2020 (the Ordinance), which introduces concessionary tax regimes for qualifying ship lessors and ship leasing managers, finally came into effect. The Ordinance is a follow-up of the well-received tax concessions policy for aircraft leasing businesses in Hong Kong, and the new tax regime applies to revenue received on or after April 1, 2020. The Ordinance i. Tax rate The tax rates…

Asset Finance in Brief

Chattel paper in the electronic age

By Alexis Leventhal & Amir Shachmurove

May 12, 2020

The world is going digital and equipment lease transactions are no exception. Today, business is increasingly conducted online, and the necessity to do so has only been amplified with the COVID-19 health crisis. Luckily, because the movement of transactions into the digital space was already well underway prior to COVID-19, the law and the market have had time to adapt to provide relatively clear guidance as to best practices to ensure transactions, including equipment lease…

Asset Finance in Brief

Harder than it looks: the impact of COVID-19 on luxury transportation

By Ashleigh Standen, Rohan Soni & Will Hollins

May 4, 2020

The COVID-19 pandemic has taken the world largely by surprise, especially as regards the speed with which countries have closed their borders, restricted travel and seen a sharp drop in economic activity. The outbreak has had a significant negative impact on the aviation and shipping sectors, with an increasing number of countries partially or totally closing their borders,[1] coupled with a widespread awareness that people could catch or spread the virus through travel. The…

Asset Finance in Brief

JOL-ted into action: how leasing is changing asset finance

By Richard Hakes

January 16, 2020

Background Leasing has been a staple of the aviation industry for more than 40 years, and has become increasingly attractive to the shipping industry over the last five years, particularly given the scarcity of traditional bank finance. Until 2017, Chinese money was the dominant force – particularly in aviation finance. However, the Chinese government has since put pressure on domestic corporations to sell assets and deleverage. With Chinese money no longer so readily available, a…

Asset Finance in Brief

Ship Sale and Leaseback Transactions

By Zoe Jackson

October 23, 2019

The shipping industry has experienced a very turbulent and somewhat negative decade since the 2008 financial crisis. The banking industry is a lot more regulated post-recession era and risk management is paramount. Many of the traditional shipping banks have either sought to leave the shipping industry altogether or have drastically reduced their exposure in response to a significant number of defaults and non-performing loan portfolios. As a result, traditional financing is at most only available…

Asset Finance in Brief

Decarbonisation: new opportunities for financiers

By Niovi Antoniou

September 6, 2019

If the shipping industry were a country on its own, it would be the sixth largest greenhouse gas emitter worldwide. Economic and regulatory pressures, including the much-discussed IMO 2020, have been building up and there is no question that it is time for all maritime stakeholders to start preparing for new decarbonisation challenges. In this blog we explore an internal pricing mechanism and an external collaboration, which each provide new opportunities for financiers to aid…

Asset Finance in Brief

LNG for 2020: IMO Sulfur Limits and the LNG Alternative

By Noah Jaffe

May 24, 2019

This blog post compares the uses of liquefied natural gas (LNG) as a marine fuel with other options for complying with the more stringent sulfur emission requirements of the International Maritime Organization (IMO) beginning in 2020 and then discusses the development of LNG as a marine fuel. The IMO 2020 sulfur limit The IMO is the United Nations agency tasked with setting global standards for safety, security and environmental performance in global shipping. In 1973…

Asset Finance in Brief

Blog Authors

Preparing for the transition away from LIBOR: the options for ship finance lenders and borrowers

Distressed Assets – The opportunity for a bargain but pitfalls abound

Staying afloat: managing liquidity in the COVID-19 fallout

New regime for ship leasing tax concessions in Hong Kong

Chattel paper in the electronic age

Harder than it looks: the impact of COVID-19 on luxury transportation

JOL-ted into action: how leasing is changing asset finance

Ship Sale and Leaseback Transactions

Decarbonisation: new opportunities for financiers

LNG for 2020: IMO Sulfur Limits and the LNG Alternative

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