Introduction
In the current economic climate, many mortgagees have considered
the possibility of court sales of mortgaged ships. A court sale in
a recognised admiralty jurisdiction results in title to the ship
passing to the buyer free of all claims, liens and encumbrances,
accruing up to the date of the court sale. Favourable jurisdictions
for ship mortgage enforcement include England, The Netherlands,
Gibraltar, Hong Kong and Singapore. These jurisdictions have
long-established procedures for the judicial sale of ships and the
courts in these jurisdictions deal with such matters frequently
and, usually, quite quickly. In the period between arrest and sale,
costs relating to such matters as crew wages, insurance, bunkers,
and stores, will accrue. These costs will be minimised, if the sale
procedure is accelerated. The usual method of court sale has a
public element. The fact that the ship is to be the subject of a
judicial sale is widely advertised and prospective
