ABSTRACT

The founder of Laval Maritime Inc. (LMI), Pierre Laval, enjoyed great respectability and admiration in the shipping world. After 35 years of intensive involvement in the maritime industry, Pierre passed away in the middle of 1981. When his son Jean Laval, who had joined the company 16 years before, took charge of the family interest, he was left with a strong and well-known shipping company. However, in the previous two years, the combination of unsuccessful investments and high interest rates had been hurting LMI’s cash flows, though not to the extent of threatening the company’s existence.