Penningtons Manches Cooper ship finance team advises Condor Ferries on financing and purchase of passenger ferry

Posted: 05/06/2023

Penningtons Manches Cooper’s ship finance team has advised UK and Channel Islands based ferry operator Condor Ferries on the financing and purchase of the ro-ro passenger ferry m.v. ‘Condor Islander’ (formerly m.v. ‘Straitsman’). 

Partner Grant Eldred and associate Ellis van der Vos, with additional advice from partner James Severn, led the team on the complex transaction which involved dealing with multiple jurisdictions and time zones, coordinating with New Zealand and Bahamas ship registries, escrow arrangements in Singapore, a joint venture structure, financing documentation incorporating funding from the States of Guernsey government, and chartering arrangements.

The vessel was purchased from StraitsNZ in New Zealand and is currently en route from New Zealand to Europe to undergo refit works, before entering service in the Channel Islands later this year.

As well as providing passenger ferry services, the vessel also forms a key part of the supply chain for the Channel Islands, and the transaction will help provide vital services for the islands.

The team at Penningtons Manches Cooper dealt with a number of cross-jurisdictional issues and complex financing structures in order to finalise the transaction, with completion and delivery of the vessel in New Zealand. The Condor Islander has now passed through the Panama Canal and is underway to join the rest of the Condor Ferries fleet.

Partner Grant Eldred commented: “This was certainly not a transaction without challenges, but it was great to work with such a professional team and to be part of building the maritime infrastructure for the Channel Islands.”

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