Parties facilitating financing in shipping industry must consider law of transferor’s domicile

A recent Maritime and Commercial Court case concerned two Danish OW Bunker companies that had given a foreign bank security against their ordinary claims and subsequently became subject to insolvency proceedings. The judgment stressed that parties facilitating financing in the shipping industry must consider the law of the transferor’s domicile and undertake due diligence in accordance with this law in order to protect their interests in the event of the transferor’s insolvency.