Ocean King Maritime Ltd v Den Norske Bank ASA (The ‘Ocean King’) - High Court (Cape of Good Hope Provincial Division)(Tebbutt J) - 2 July 1998

Mortgage - Whether ship’s mortgagee entitled to arrest ship during currency of charterparty

The applicant purchased the vessel Ocean King with the assistance of a loan of US$5.8 million from the respondent bank. The applicant subsequently executed a second priority mortgage over the Ocean King and a deed of covenant, collateral to the mortgage, containing a guarantee of another company’s obligations under a separate loan agreement.