Our client, a European bank, led a syndicated loan to a Turkish shipbuilding company. The loan was to finance the construction of a number of vessels for a Turkish shipping company. Although the loan was approved, it was decided to monitor discreetly the company’s performance.

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We subsequently observed that the order for ships was dramatically scaled back. We then investigated rumours that the shipbuilder was attempting to mortgage or sell vessels under construction without consulting our client as required by the loan agreement. These rumours proved to be partially accurate. Our client engaged in pre-emptive talks with the company and then assisted the shipyard in winning new orders, advancing further loans to meet cash flow demands.