Our Cases
⚓ Crisis Management in the Maritime Sector: How Shiprights Prevented the Bankruptcy of a Shipping Company
A shipping company client operating in international trade faced a severe financial crisis due to post-pandemic economic fluctuations, sudden drops in freight rates, and rising operational costs.
The company’s debt-to-asset ratio had become unsustainable, loan payments had defaulted, suppliers and fuel companies initiated enforcement proceedings, insurance premiums were unpaid, and the company’s vessels were at risk of being seized under maritime liens.
In short, the client was on the brink of bankruptcy.
That’s when Shiprights – Maritime Law & Consultancy stepped in with a strategic, multi-layered legal intervention plan....
🔍 Initial Legal Diagnosis
We started with a comprehensive assessment of the company’s financial, operational, and legal situation.
This included a deep dive into financial statements, ship mortgage structures, ongoing enforcement actions, vessel charter agreements, and potential labor claims from unpaid crew salaries.
⚖️ Our Legal Strategies
Bankruptcy Postponement & Concordat Alternatives
Although the client was temporarily unable to pay its debts, we identified that the business still had core operational potential.
We immediately prepared filings to request postponement of bankruptcy, presenting detailed cash flow projections and a business recovery plan to persuade the court not to proceed with liquidation.In parallel, we evaluated concordat (creditor settlement) as a secondary route and notified all major creditors with legal justification for deferred and restructured payments.
Negotiations with Creditors
We reached out to key creditors individually with formal restructuring protocols.
By invoking the invalidity of certain unfair clauses in supplier contracts, we negotiated new payment plans, extended deadlines, and in some cases secured debt reductions in exchange for collateral swaps.We also succeeded in obtaining temporary halts on certain enforcement proceedings through court petitions and interim protection measures.
Protecting Against Ship Arrests and Maritime Liens
For vessels operating in international waters, we identified jurisdictions where ship arrest attempts had begun.
We swiftly obtained precautionary injunctions to prevent these actions and ensured that international clients and charterers remained contractually engaged.
We also launched negotiations with crew members to prevent labor lawsuits from escalating into legal obstacles for port entries.New Investment and Financial Recovery
Thanks to the clear legal framework we constructed and the restructuring of the debt, the company became an attractive target for investment.
Within weeks, we facilitated preliminary agreements with two investor groups, resulting in a 40% equity acquisition in return for capital injection.
📈 Outcome: Operational Continuity Secured
Today, our client continues to operate with a stabilized fleet, a restructured debt load, and fully protected contractual obligations.
The bankruptcy risk has been completely eliminated. The company is now preparing to execute new expansion plans with long-term financial security.
⛴️ At Shiprights, we don’t just resolve maritime disputes – we safeguard the future of companies by legally navigating them through financial crises.
📌 Maritime & Commercial Law
📌 Bankruptcy, Concordat, Debt Restructuring
📌 Ship Finance and Creditor Settlements
📌 International Arrest & Injunction Strategies
📍 Shiprights – Maritime Law & Consultancy
🌐 www.shiprights.com
📩 info@shiprights.com 📞+90 553 802 92 64
⚓ Successful Use of ADR: Shiprights Resolves International Shipping Dispute through Mediation and Arbitration
A major dispute arose between two international shipping companies over a time charter agreement, where the charterer returned the vessel before the agreed period, failed to fulfill payment obligations, and allegedly caused technical damage to the ship. Our client, the shipowner, faced significant financial losses due to unpaid charter fees, early termination, and delays.
Although litigation was initially considered, the contract included a clause stating that disputes would be resolved under ICC Arbitration Rules, with mediation as a prerequisite. Based on this clause, an alternative dispute resolution (ADR) path was pursued.
This is where Shiprights – Maritime Law & Consultancy intervened..
🔍 Dispute Overview
Parties: Turkish-flagged shipowner (client) & UK-based charterer
Issues: Early termination, unpaid hire fees, voyage delays, and technical damage to the vessel
Claim Amount: Approx. USD 1.8 million
Dispute Resolution Clause: ICC Arbitration Rules, with mandatory mediation before arbitration
⚖️ Our Solution Strategy: Mediation and Arbitration in Tandem
1. Pre-Arbitration Mediation: Constructive Negotiation Approach
In compliance with the contract, an ICC mediation process was initiated before arbitration. During this phase:
We submitted detailed expert reports on the vessel’s condition and damages.
We invalidated the charterer’s reasons for delayed or unpaid rent with strong legal arguments.
We offered flexible settlement structures, including payment schedules and security mechanisms.
While partial consensus was achieved, no final agreement could be reached on the amount of compensation or liability limits — thus, arbitration commenced.
2. ICC Arbitration: Evidence-Driven Representation
We represented our client before the ICC Arbitration Court in London.
Key steps included:
Submission of technical reports on vessel damage prepared by marine surveyors,
Use of AIS tracking data and voyage logs to verify the extent of delays and port operations,
Presentation of internal communications, witness statements, and commercial documentation proving bad faith and contractual breaches by the charterer.
We also requested and obtained expedited arbitration proceedings under ICC Rules to limit costs and duration.
📈 Result: Full Compensation Without Litigation
After approximately six months of arbitration proceedings:
The arbitral tribunal found the charterer 100% liable,
The charterer was ordered to pay USD 1,780,000, covering unpaid hire, damages, and delay compensation,
Full payment was made within 30 days following the award,
Our client obtained full recovery without going through local court litigation, which could have lasted years.
🌍 Evaluation: A Case Study in Effective ADR
This case once again demonstrated the power and efficiency of Alternative Dispute Resolution (ADR) methods — particularly mediation and international arbitration — in maritime disputes.
Mediation enabled early-stage negotiation and understanding, while arbitration provided a fast, fair, and enforceable solution, allowing our client to continue business operations without disruption.
⚖️ At Shiprights, we don’t only advocate in court — we successfully represent our clients at international mediation and arbitration tables, securing practical and enforceable results in high-stakes maritime conflicts.
📌 ICC Arbitration & Mediation
📌 Time Charter Dispute Resolution
📌 Maritime Commercial Contracts
📌 Cross-Border ADR Strategies
📍 Shiprights – Maritime Law & Consultancy
🌐 www.shiprights.com
📩 info@shiprights.com 📞+90 553 802 92 64
⚓ Legal Victory at Sea: Shiprights Secures Compensation for the Family of Deceased Seafarer
Our client, a chief engineer working aboard an internationally operating bulk carrier, tragically lost his life in a sudden workplace accident.
Following the incident, the employer denied responsibility, alleging that the death resulted from the seafarer’s own negligence.
However, through our detailed investigation and technical analysis, it was clearly established that the accident occurred due to the employer’s failure to fulfill its occupational health and safety obligations.
At this point, Shiprights – Maritime Law & Consultancy stepped in and successfully led the family’s pursuit of justice.
🔍 Background of the Incident
Location: Bulk carrier vessel navigating in international waters
Deceased: 38-year-old Chief Engineer
Incident: A fatal accident occurred during a propeller inspection conducted below deck, without adherence to proper safety protocols
Employer’s Stance: Denial of liability and refusal to pay compensation
Legal Action: Civil lawsuit for pecuniary and non-pecuniary damages, based on maritime labor law and Turkish Code of Obligations
⚖️ Our Legal Strategy
Collection of Technical Evidence & Clarification of the Incident
We thoroughly examined digital schematics of the accident site, witness testimonies, and maintenance logs.
Additionally, an expert report prepared in collaboration with independent maritime safety specialists clearly demonstrated that the incident resulted from the employer’s negligence.
Establishing Employer’s Liability
It was proven that our client had not received periodic safety training, was not provided with essential protective equipment, and that there was a serious lack of supervision during the maintenance operation.
All of these factors constituted gross negligence under the Turkish Maritime Labor Law (Law No. 854) and the Occupational Health and Safety Law (Law No. 6331).
Application of International Conventions
Since the vessel was operating in international waters, ILO conventions and ITF rules related to the protection of seafarers were also invoked.
We demonstrated that the employer had violated not only national but also international obligations regarding crew safety.
Compensation Calculation & Psychosocial Impact Reports
Individual compensation calculations were prepared for the seafarer’s spouse and two children.
Furthermore, psychological evaluation reports documenting the family’s emotional trauma were submitted to support the non-pecuniary damage claims.
📈 Result: Justice for the Family, Precedent for the Industry
After approximately 9 months of litigation, the court ruled:
The employer was 100% at fault,
Awarded the family a total of TRY 2,340,000 in pecuniary and non-pecuniary damages,
The decision was finalized without appeal, and full payment was made within 3 months.
This case not only delivered justice for the bereaved family but also stands as an important precedent emphasizing the critical importance of crew safety in the maritime industry.
⚖️ At Shiprights, we are committed to defending the rights of every worker in the maritime sector.
From the aftermath of the incident to courtroom litigation, we provide unwavering support through our expert legal team to ensure justice is served.
📌 Maritime labor law
📌 Seafarer compensation claims
📌 Occupational health & safety violations
📌 International maritime conventions
📍 Shiprights – Maritime Law & Consultancy
🌐 www.shiprights.com
📩 info@shiprights.com 📞+90 553 802 92 64