Laborde Marine, a premier offshore support vessel operator, faced a major financial and operational challenge during the construction of three offshore supply vessels (OSVs) in Manaus, Brazil. The project was severely impacted by currency exchange rate deterioration, resulting in a $10 million discrepancy on a $60 million contract. The shipyard claimed underpayment, the company believed it had overpaid, and the lender had funded according to the agreement but lacked full visibility into the project status. The shipyard ultimately halted work, jeopardizing vessel completion and contracted deployment.

• Diagnosing the root cause of the dispute—the USD to Brazilian Real exchange rate drop—and quantifying its impact on contract value.

• Conducting a detailed analysis of the vessels’ percentage completion, identifying remaining work, labor, and materials needed.

• Creating a funding and project completion plan to get the vessels back on track.

• Structuring a sharing agreement among the lender, borrower, and shipyard to distribute the additional funding burden and incentivize project completion.

• Implementing a monitoring system to track labor, materials, and progress milestones to ensure accountability and transparency.