If your estate is subject to insolvency proceedings for the purpose of:
- Debt rescheduling
- Contractual arrangement with creditors
- Compulsory arrangement with creditors
- Reconstruction proceedings (previously called suspension of payments)
- Liquidation of companies
– you must notify the Register of Shipping when the proceedings commence. The Register of Shipping will enter in the ship record that estate administration has commenced.
While bankruptcy or reconstruction proceedings are pending, the administrator has the power to deal with the ship. In the case of liquidation – voluntary or compulsory – the liquidator has that power. In the case of debt rescheduling and compulsory arrangements, you as owner retain the power to deal with the ship. In the case of contractual arrangements with creditors, it depends on the arrangement made.
In the case of bankruptcy, debt rescheduling, contractual or compulsory arrangements or reconstruction by court order, the Register of Shipping must be notified. We must receive an original transcript of the records of proceedings signed by the court. Alternatively, you can request the court to send the transcript to the Register of Shipping via the court’s e-Boks.
If a solvent company enters into liquidation proceedings, you need not notify us. If the company is subsequently dissolved and the ship changes owner, the Register of Shipping must receive an original certified transcript from the Bankruptcy Court or a transcript via the court’s e-Boks. At the same time, the Register must be notified of the new owner. If the ship is to be deleted from the Register, this must be notified.
Note – as from 1 March 2018, the Register of Shipping will delete pleasure craft of less than 20 GT on its own initiative if the ships are free from registered mortgages and encumbrances.