Ship funds and holdings are mostly closed funds whose accumulated capital is invested in the construction or acquisition of seagoing vessels. They have long been considered a safe and profitable form of investment. For this reason, many investors have opted for this type of capital investment without first having someone examine it from a legal perspective.
Since the contributions of the company’s investors normally come in the form of equity capital, they are not entitled to an exact repayment date or to receive a fixed rate of interest. Instead, they share in the investment company’s financial results. Unfortunately, the shipping industry is among those that have experienced a collapse as a result of the global financial crisis.
The advertised ship holdings represent stakes in companies that would normally be expected to generate a high yield potential. However, a large number of ship funds are currently feeling the effects of the shipping crisis, with many of them already thought to be insolvent or undergoing restructuring.
The most widely promoted funds include:
- Atlantic Flottenfonds
- Atlantic Star
- Cape Banks
- Cape Byron
- East Star
- Hanse Capital Container Flottenfonds
- HT Flottenfonds V
- Lloyd Fonds LF 16 MS Rosenheim
- Lloyd Fonds MS Wehr Nienstedt
- Mar Campania
- MS Agaman
- MS MCP Blankenese
- MS Pacific Sun
- MS Stadt Lübeck
- Beluga Reederei
- Castor Kapital
- CFB Fonds
- Dr. Peters Schiffsfonds
- EEH Elbe Emissionshaus
- Fondshaus Hamburg FHH Schiffsfonds
- GEBAB Unternehmensgruppe
- GHF Reederei Global Hanseatic Shipping (GHS)
- Hannover Leasing Schiffsfonds
- Hansa Treuhand Schiffsbeteiligungs GmbH & Co. KG
- Hanse Capital Gruppe
- HC-Hanse Capital Emissionshaus GmbH
- HCI Schiffsfonds und Flottenfonds
- KGAL GmbH & Co. KG Schiffsfonds
- König & Cie. Schiffsfonds
- Lloyd Fonds AG
- MPC Schiffsfonds
- Nordcapital GmbH Schiffsfonds
- Ownership Emissionshaus GmbH
- Werse Gruppe
The difficulties faced by many of these funds stem most notably from the low charter rates for transport vessels.
Those investing in these kinds of ship and fleet funds run the risk of losing their entire investment capital. The relevant parties are often unaware of whether and how their investments can be salvaged. We at MTR Rechtsanwälte can provide them with comprehensive advice about their legal rights and, more specifically, an overview of this complex and complicated topic.
In addition to reviewing the investment agreement, one of our legal experts can assess using a comprehensive checklist whether and against whom you may be entitled to assert claims. In particular, we will examine whether you were fully informed about the risks associated with this type of investment. Our attorneys at MTR Rechtsanwälte will also investigate whether your contribution has been invested appropriately, which involves looking at, among other things, the ship’s calculated running costs and whether the price paid to purchase it was reasonable.
If you are affected by any of this and took out a loan to finance your investment, thus incurring a financial loss, you should have your rights and potential claims reviewed by a lawyer. Given the short statutory limitation periods, you should take action immediately.