Vessel Loan Coming Due
Prepare a refinancing or extension proposal before the existing facility reaches maturity.
Creditor Negotiation and Replacement Capital
Shipping Debt Restructuring Advisory Services
Financely advises shipowners and maritime operators facing vessel loan maturities, covenant pressure, arrears or debt-service obligations that no longer fit the operating cash flow. We analyze the existing facility, prepare a restructuring case, support creditor negotiations and place replacement or rescue capital where required.
Restructuring can preserve a viable maritime operation when existing debt terms no longer reflect vessel earnings or market conditions.
Address the Capital Structure Before the Lender Controls the Outcome
A near-term maturity, covenant breach or missed payment can quickly reduce a shipowner’s options. Waiting until enforcement begins may weaken negotiating leverage and restrict access to replacement capital.
Our offer is clear. We prepare the financial restructuring proposal, engage with the existing creditor and run a targeted process for refinancing, rescue debt or asset-backed capital where the business remains viable.
Request a Debt Restructuring ReviewSituations We Review
Financial or LTV Breach
Address covenant pressure caused by lower vessel values, weaker earnings or temporary disruption.
Unsustainable Amortization
Rework repayment terms where current debt service is constraining an otherwise viable operation.
Restructuring is most credible when the underlying operation remains viable. The proposal must show how revised terms, new capital or asset actions create a sustainable repayment path.
Conventional takeout financing may be considered through our maritime asset refinancing service. Broader creditor situations can also be reviewed under debt restructuring advisory or distressed debt and turnaround finance.
Restructuring Solutions
Amend-and-Extend Negotiation
We prepare a creditor proposal covering maturity extension, revised amortization, covenant resets, payment deferrals and additional reporting or security.
Replacement Vessel Financing
A new lender may refinance the current facility where vessel value, earnings and borrower support satisfy updated underwriting requirements.
Super-Senior or Rescue Capital
New-money capital can address urgent liquidity, maintenance or creditor requirements when an acceptable priority and repayment structure can be agreed.
Sale-Leaseback or Controlled Asset Sale
The solution may involve monetizing a vessel, refinancing through a lease or selling a non-core asset to reduce debt and preserve the wider operation.
What We Deliver
We review the current loan documents, repayment schedule, collateral, covenant position and creditor correspondence. We then model the revised debt capacity using current vessel values, charter income, operating expenses, maintenance requirements and downside scenarios.
The resulting package can include a restructuring memorandum, updated financial model, repayment proposal, sources and uses, lender presentation and supporting diligence file. Where replacement funding is required, we manage a targeted debt placement and loan packaging process.
Our Process
1
Position Review
We assess the debt, defaults, collateral, vessel economics and available time.
2
Restructuring Plan
We model revised payments, new money and creditor recovery scenarios.
3
Negotiation and Placement
We support creditor discussions and approach suitable replacement providers.
4
Execution Support
We coordinate diligence, term alignment and definitive documentation.
Present Creditors With a Financeable Solution
Submit the current loan agreement, outstanding balance, payment status, vessel valuation, charter information and operating financials for an initial assessment.
Submit a Shipping Debt MandateFrequently Asked Questions
What does shipping debt restructuring advisory include?
It can include debt analysis, cash-flow modeling, creditor proposals, negotiation support and placement of refinancing or rescue capital.
Can a vessel loan be restructured after a covenant breach?
Potentially. The creditor will assess the severity of the breach, vessel value, repayment prospects and credibility of the proposed solution.
Can new capital be raised while an existing lender remains in place?
Yes, when priority, security and intercreditor terms can be agreed with the existing lender and the new capital provider.
Does restructuring require a distressed asset sale?
No. Solutions may include an extension, revised amortization, refinancing, new-money capital, sale-leaseback or selective asset disposal.
Does Financely make the final restructuring decision?
No. Existing creditors and new capital providers make their own decisions. Financely provides commercial advisory, preparation, negotiation support and placement services.
This page is provided for general information and does not constitute legal advice, insolvency advice or a commitment to provide financing. Financely works on a best-efforts basis. All mandates remain subject to KYC and AML review, sanctions screening, creditor cooperation, asset diligence, provider approval and definitive documentation.