Contract analysis

From: David Teo Wei Lin <d.teo@straitsmeridian.com.sg> To: Hannah Brinkley <h.brinkley@calderwoodharkness.com> Cc: Priya Subramaniam <p.subramaniam@straitsmeridian.com.sg> Date: Tue, 20 Aug 2024 17:42:00 -0000 Subject: URGENT — Arrest of M/V *Crimson Horizon* (IMO 9801334) — Confirmation of Execution

I am pleased to confirm that M/V *Crimson Horizon* (IMO 9801334) has been successfully arrested in Singapore waters today, 20 August 2024, by the Sheriff of the Supreme Court of Singapore, pursuant to the warrant of arrest issued by the Singapore High Court (Admiralty Division) on the basis of the in rem writ of summons filed in these proceedings. This follows your instruction letter dated 10 August 2024 and the orig

**Vessel Particulars and Arrest Details**

- **Vessel:** M/V *Crimson Horizon* - **IMO Number:** 9801334 - **Type:** Handymax Bulk Carrier - **DWT:** 37,500 - **Flag:** Liberia - **Registered Owner:** Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898)

The arrest was effected by the Sheriff at approximately 14:15 SGT while the vessel was at anchorage at the Eastern Anchorage (Anchorage Designation: EA-7), Singapore Straits. The warrant of arrest was duly served on the master of the vessel. The vessel is now under arrest and may not depart Singapore waters without leave of the court. The Sheriff has posted the arrest notice on the vessel and at the Admiralty Registr

By way of brief recap, the arrest is in support of the enforcement of LCIA Award No. 224718 dated 28 June 2024, rendered in the amount of £96,450,000 plus costs of £12,150,000 (total: £108,600,000) in favour of Thalassa Shipping & Logistics SA against Korinthian Maritime Holdings Ltd. ("KMH").

The arrest relies on the associated ship doctrine under the High Court (Admiralty Jurisdiction) Act, on the basis that the registered owner of M/V *Crimson Horizon* — Korinthian Bulkers (Singapore) Pte. Ltd. — is a wholly-owned subsidiary of KMH through the intermediate holding company Oceangate Ventures Ltd. (Cyprus Reg. No. HE 401293), thereby rendering the vessel an "associated ship" of the judgment debtor within

As of the time of writing, no offer of security has been made by or on behalf of KMH, Korinthian Bulkers (Singapore) Pte. Ltd., or any solicitors acting for them to secure the release of the vessel. We have not received any communication whatsoever from solicitors acting for KMH or the vessel owner in Singapore in response to the arrest. Should any such contact be made, we will notify you immediately. The vessel will

1. **OS No. 872/2024** (application for leave to enforce the LCIA award under the International Arbitration Act, Cap. 143A) remains pending before the High Court. Leave to enforce has not yet been granted and we await a hearing date.

2. **Garnishee proceedings** against Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in respect of accounts held by Korinthian Bulkers (Singapore) Pte. Ltd. are being progressed in parallel. We will provide a separate update on the status of that application shortly.

We propose the following next steps for your consideration and instructions:

1. **Custodial arrangements.** The Sheriff will appoint a custodian for the vessel. We are liaising with the Sheriff's office regarding crew welfare, bunker supply, and port charges during the arrest period. These costs will accrue as part of the arrest expenses and will constitute a first charge on the vessel and/or any sale proceeds.

2. **Application for appraisement and sale.** If no security is offered within a reasonable period and the enforcement order under OS No. 872/2024 is obtained, we recommend applying for an order for appraisement and judicial sale of M/V *Crimson Horizon*. We will prepare a draft application for your review in due course. For your planning purposes, the process from arrest through to completion of a judicial sale in S

3. **Vessel valuation.** We would be grateful if you could arrange for Northcape Maritime Advisory Ltd. to provide an independent valuation of the vessel on both a fair market value and a forced sale value basis, to support the appraisement application and to benchmark any offers received during a judicial sale process.

4. **Caveat against release.** We have filed a caveat against release with the Admiralty Registry to ensure that we receive notice in the event any party applies to release the vessel from arrest.

5. **Monitoring for KMH response.** We will monitor closely for any application by KMH or the vessel owner to set aside the arrest or to provide alternative security, and will respond as necessary.

We would be grateful for your guidance on one point: should any communication regarding the arrest be directed by us to Harkness Whitford & Co. (KMH's English counsel), or would you prefer that we await contact from solicitors appointed by KMH or the vessel owner in Singapore? Please advise on your preferred approach.

We will provide a formal cost estimate for the arrest and judicial sale proceedings phase in due course. In the meantime, we confirm that our fee arrangement remains as set out in your instruction letter of 10 August 2024.

A certified copy of the executed warrant of arrest will be forwarded to you separately once obtained from the Sheriff's office / Admiralty Registry.

We would be grateful if you could confirm your instructions on the above next steps at your earliest convenience, in particular regarding (a) the timing and preparation of the judicial sale application and (b) whether to proceed with the Northcape Maritime Advisory valuation instruction. We are happy to arrange a call with your team at a time convenient to you to discuss these matters — please let us know your availa

**David Teo Wei Lin** Partner Straits Meridian LLP

1 Raffles Place, #44-01 One Raffles Place Tower 2 Singapore 048616

T: +65 6332 8800 D: +65 6332 8812 M: +65 9188 4527 E: d.teo@straitsmeridian.com.sg

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