Transfer of vessel – Liability of buyer for vessel’s debts – Greece
Under Greek law, when we have a transfer of an enterprise as a whole, the buyer is jointly liable with the seller up to the value of the asset transferred for already existing debts.
This is also applicable where a vessel is transferred, provided the vessel represents the sole or the biggest part of the assets of the transferor. For the buyer to be liable, he should be in a position to assess the transferred property is indeed the sole or biggest part of the assets of the transferor. Such knowledge is deemed to exist if, under the circumstances of the sale, the buyer was aware of the situation of the seller and of his assets in general. Further, in case an enterprise is transferred in its entirety above, knowledge of the buyers is deemed to exist.
Piraeus Court of Appeal Judgment no 676/ 2013, President: P. Tsandekidou, Rapporteur Judge: K. Oikonomou, Attorneys at law: G. Pologiorgis, A. Koutsofios, Maritime Law Review vol. 41, p. 409.
NOTE: The issue of transferree’s liability is a factor that should be taken into account when a vessel is transferred under Greek law. Due diligence should take place; the seller is of course liable both primarily and towards the buyer, however he might be unsuable in the case he sells is only asset / his entire enterprise. The vesse is considered to constitute an enterprise on its own.