Contract analysis

1. Purpose and Summary The purpose of this memorandum is to analyze in detail the procedure, timeline, and practical considerations for the judicial sale of M/V Crimson Horizon (IMO 9801334) following her arrest in Singapore waters on 20 August 2024, and to outline the steps required to bring the vessel to sale and distribute the sale proceeds toward satisfaction of LCIA Award No. 224718. This memorandum is intended

2. Background 2.1 The Underlying Award The arbitration giving rise to the present enforcement proceedings was conducted under the auspices of the London Court of International Arbitration ("LCIA") under LCIA Case Reference No. 224718. The arbitration was seated in London and governed by English law, both as to the substance of the disputes and the law of the arbitration. The underlying disputes arose out of a series

3. Legal Framework for Judicial Sale in Singapore 3.1 Governing Legislation and Rules The judicial sale of arrested vessels in Singapore is governed by a well-established body of legislation, procedural rules, and judicial practice. The principal legislative and procedural instruments are as follows: (a) High Court (Admiralty Jurisdiction) Act (Cap. 123) — This Act confers admiralty jurisdiction on the Singapore High

4. Application for Appraisement and Sale 4.1 Filing the Application The application for appraisement and sale of M/V Crimson Horizon is to be made by summons within the existing admiralty action in the Singapore High Court. Straits Meridian LLP will prepare and file the application on behalf of TSL. The application must be supported by an affidavit — to be affirmed by David Teo Wei Lin or Priya Subramaniam on behalf

5. Sale Process — Requirements and Procedure 5.1 Advertising The Sheriff is required by the Rules of Court and the Practice Directions to give notice of the sale by advertisement. The purpose of the advertising requirement is to ensure that the sale is brought to the attention of the widest possible pool of prospective purchasers, thereby maximizing the price achieved at auction. The advertising requirements are as f

6. Distribution of Proceeds and Priority of Claims 6.1 Priority Ranking The proceeds of the judicial sale of an arrested vessel in Singapore are distributed according to the well-established priority of maritime claims. The priority ranking applicable to the distribution of the proceeds of the sale of M/V Crimson Horizon is as follows:

1. Sheriff's costs and expenses — First priority. This includes all costs incurred by the Sheriff in connection with the custody and maintenance of the vessel during the arrest period, including custodian charges, crew wages paid during the arrest, crew provisions, port charges, bunker costs, insurance premiums, and the costs of the appraisement, advertising, and sale itself. The Sheriff's costs are a first charge on

2. Maritime liens — Second priority. Maritime liens arise by operation of law and attach to the vessel regardless of changes in ownership. They include crew wage claims (to the extent not already paid by the Sheriff from the arrest fund), salvage claims, claims for damage done by the ship, and claims for bottomry and respondentia. Maritime liens rank ahead of all other claims, including registered mortgages.

3. Registered mortgages — Third priority. If any mortgages are registered against M/V Crimson Horizon on the Liberian ship registry, the mortgagee(s) will have a claim against the sale proceeds ranking after maritime liens but ahead of statutory liens and the arresting party's claim. The tracing work conducted by Hartwell Pemberton LLP and the registry searches to be conducted by Straits Meridian LLP (discussed at Se

4. Statutory liens / possessory liens — Fourth priority. These include claims by necessaries suppliers, repairers, and others who have provided goods or services to the vessel and who hold statutory liens under the High Court (Admiralty Jurisdiction) Act. Possessory liens — held by parties in physical possession of the vessel or its appurtenances — also fall within this category.

5. The arresting party's claim — Fifth priority. TSL's enforcement claim under LCIA Award No. 224718, to the extent that sale proceeds remain after satisfaction of all senior claims. It is in this category that TSL's recovery from the vessel sale will be realized.

6. Other in rem claimants — Sixth priority. Any other parties who have commenced or who commence in rem proceedings against the vessel and who file claims against the sale proceeds. Such claimants rank pari passu among themselves and behind the arresting party.

7. Surplus to registered owner — Any surplus remaining after satisfaction of all claims will be returned to Korinthian Bulkers (Singapore) Pte. Ltd. as the registered owner of the vessel. This priority ranking is well-established in Singapore admiralty law and follows the general principles applicable in common law admiralty jurisdictions. The practical effect of this ranking is that TSL's recovery from the vessel sa

7. Expected Timeline 7.1 Estimated Timeline — Arrest to Distribution The following table sets out the estimated timeline for each phase of the judicial sale process, from the date of arrest through to the distribution of proceeds: Total estimated timeline from arrest (20 August 2024) to sale completion: approximately 2–3 months. An additional period of 4–8 weeks should be allowed for the claims determination and dist

8. Practical Considerations and Recommendations 8.1 Coordination with Parallel Enforcement Proceedings The judicial sale of M/V Crimson Horizon is one element of the broader multi-jurisdictional enforcement campaign being conducted by C&H on behalf of TSL. The vessel sale proceeds must be carefully tracked and accounted for within the overall recovery framework. In particular: (a) Multi-jurisdictional recovery tracke

9. Cost Implications The costs associated with the judicial sale process are summarized as follows: (a) Sheriff's costs and expenses: The costs of the judicial sale application, the appraisement, advertising, and the auction itself will be borne in the first instance by the court out of the sale proceeds. As noted above, the Sheriff's costs are a first charge on the sale proceeds and will be deducted before any distr

10. Next Steps The following action items should be pursued as a matter of priority:

1. Straits Meridian LLP to file the application for appraisement and sale at the earliest practicable date. We recommend that the application be filed no later than the first week of October 2024. C&H will provide any additional instructions and supporting materials required by Straits Meridian for the preparation of the supporting affidavit.

2. Northcape Maritime Advisory to complete and deliver the independent valuation report within the agreed 14-day timeline from the date of instruction. C&H will follow up with Captain Forsyth to ensure that the report is on track for delivery.

3. Straits Meridian LLP to conduct a Liberian Ship Registry search for any registered mortgages, charges, or other encumbrances against M/V Crimson Horizon (IMO 9801334). The search results should be reported to C&H as soon as they are available.

4. C&H to brief TSL on the judicial sale timeline, the estimated net proceeds, and the protective bidding question. We recommend scheduling a call with Nikolaos Papadimitriou and Ioanna Christodoulou to discuss these matters and to seek TSL's instructions on protective bidding.

5. C&H to coordinate with Straits Meridian LLP on the advertising strategy to maximize auction participation, including recommendations on the publications, platforms, and duration of advertising.

6. Ongoing monitoring of vessel condition and maintenance costs. Straits Meridian LLP to provide monthly reports on the vessel's condition, the custodian's performance, and the maintenance costs incurred.

7. C&H to update the multi-jurisdictional recovery tracker and to inform counsel in England and Wales (re: WFO), Cyprus, and the UAE of the anticipated Singapore vessel sale proceeds and the expected timeline for distribution.

8. Prepare wire transfer instructions for remittance of net proceeds to Ionian National Bank SA, Athens. TSL to confirm the relevant account details and banking instructions. I am available to discuss this memorandum and the recommended next steps at your convenience. I would suggest that we schedule a short meeting early next week to align on the priorities and to agree the timetable for communications with Straits