IN THE HIGH COURT OF THE REPUBLIC OF SINGAPORE
ORIGINATING SUMMONS NO. 872 OF 2024
And in the matter of the International Arbitration Act (Cap. 143A)
And in the matter of an arbitration award dated 28 June 2024 issued by a tribunal constituted under the rules of the London Court of International Arbitration (LCIA Case Reference No. 224718)
Related Admiralty Action: In Rem Writ of Summons against M/V Crimson Horizon (IMO 9801334)
AFFIDAVIT OF CAPTAIN DIMITRIOS KOURETAS
Filed in support of:
(i) Application for leave to enforce LCIA Award No. 224718 as a judgment of the Singapore High Court under s. 19 of the International Arbitration Act (Cap. 143A); and
(ii) Application for arrest of M/V Crimson Horizon (IMO 9801334).
AFFIDAVIT OF CAPTAIN DIMITRIOS KOURETAS
I, Captain Dimitrios Kouretas, of 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece, do solemnly and sincerely affirm and say as follows:
1. INTRODUCTION AND DEPONENT'S IDENTITY
1. My full name is Captain Dimitrios Kouretas. I am a citizen of the Hellenic Republic (Greece) and I hold Greek Passport No. AK4782356. I am above the age of 21 years and am competent to make this affidavit.
2. I am the Head of Chartering & Operations at Thalassa Shipping & Logistics SA ("TSL" or the "Applicant"), a Société Anonyme (SA) organized and existing under the laws of the Hellenic Republic, with its registered and principal office at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece. TSL's Greek Tax Identification Number (AFM) is EL-801456729.
3. I make this affidavit from my own personal knowledge of the facts set out herein, and from information derived from TSL's records and documents to which I have direct access in my capacity as Head of Chartering & Operations. Where I depose to matters on the basis of information and belief, I identify the source or sources of such information, and I verily believe such information to be true and accurate. The matters herein are, unless otherwise stated, within my own personal knowledge, having been directly involved in or responsible for the chartering operations, vessel management, and commercial activities that are the subject of the underlying dispute and the LCIA Award now sought to be enforced.
4. This affidavit is made in support of TSL's application in Originating Summons No. 872 of 2024 ("OS 872/2024") for:
(a) leave to enforce LCIA Award No. 224718 dated 28 June 2024 (the "Award") as a judgment of the Singapore High Court pursuant to s. 19 of the International Arbitration Act (Cap. 143A) (the "IAA"); and
(b) the arrest of M/V Crimson Horizon (IMO 9801334) as security for the enforcement of the Award.
5. By way of professional background, I have over 25 years of experience in the international shipping industry. I obtained my Master Mariner's certificate (Class I) from the Merchant Marine Academy of Aspropyrgos, Greece, in 1996, and subsequently served at sea for approximately eight years aboard bulk carriers and tankers operating in the Mediterranean, Black Sea, Arabian Gulf, and East Asian trade routes. I transitioned to shore-based commercial roles in 2004, joining TSL initially as a chartering manager. I was promoted to my current position of Head of Chartering & Operations in 2012. In this capacity, I am responsible for the chartering, commercial management, and day-to-day operations of TSL's fleet of 34 vessels, which comprises bulk carriers, tankers, and container feeders operating across the Mediterranean, Black Sea, and Arabian Gulf. I regularly negotiate and execute charter-party agreements, manage vessel deployments, oversee voyage and time-charter performance, and coordinate with TSL's legal and finance teams on all matters arising from the company's chartering activities.
6. I am intimately familiar with the facts giving rise to the dispute between TSL and Korinthian Maritime Holdings Ltd. ("KMH" or the "Respondent"), the LCIA arbitration proceedings, the Award, and the subsequent enforcement proceedings. I was personally involved in the negotiation and execution of the charter-party agreements that are the subject of this matter, and I gave factual evidence before the LCIA tribunal during the evidentiary hearing.
2. BACKGROUND OF THALASSA SHIPPING & LOGISTICS SA
7. TSL was founded in 1987 by the Papadimitriou family, a well-established Greek shipping family with deep roots in the Piraeus maritime community. Since its founding, TSL has grown to become a significant participant in the international dry-bulk and tanker shipping markets, with a reputation for reliability, operational excellence, and commercial integrity.
8. TSL is a privately held company. Its current ownership structure is as follows:
(a) Approximately 72% of TSL's issued share capital is held by the Papadimitriou Family Trust, a trust established under Greek law for the benefit of members of the Papadimitriou family; and
(b) The remaining approximately 28% of TSL's issued share capital is held by Aegean Capital Partners SA, a Greek institutional investor based in Athens that has been a strategic minority shareholder in TSL since 2009.
9. TSL's senior management team comprises the following key individuals:
(a) Nikolaos Papadimitriou — Chairman and Chief Executive Officer. Mr. Papadimitriou is the son of the company's founder and has led TSL since 2005. He is a graduate of the London School of Economics and holds an MBA from INSEAD.
(b) Elena Stavridis — Chief Financial Officer. Ms. Stavridis has served as CFO since 2016 and oversees TSL's financial operations, treasury, and investor relations.
(c) Ioanna Christodoulou — General Counsel. Ms. Christodoulou joined TSL in 2011 and is responsible for all legal affairs, including the management of TSL's dispute resolution and arbitration matters.
(d) Captain Dimitrios Kouretas — Head of Chartering & Operations (myself).
10. TSL recorded annual revenues of approximately €620 million for the financial year ending 31 December 2023. The company currently operates a fleet of 34 vessels, consisting of bulk carriers, tankers, and container feeders. TSL provides integrated shipping and logistics services to a diverse client base across the Mediterranean, Black Sea, and Arabian Gulf regions, handling the transport of commodities including grain, coal, iron ore, petroleum products, and containerized goods.
11. TSL's commercial reputation and financial stability are of critical importance to its ongoing operations. The breaches committed by KMH, which are described in detail below, caused substantial disruption to TSL's chartering programme and commercial position, and the continued non-satisfaction of the Award compounds that harm.
3. BACKGROUND OF KORINTHIAN MARITIME HOLDINGS LTD. (THE RESPONDENT)
12. The Respondent is Korinthian Maritime Holdings Ltd. ("KMH"), a private limited company incorporated and registered under the laws of the Republic of Cyprus, bearing Registration No. HE 387421. KMH's registered address is at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.
13. KMH is a vessel-owning and chartering company that controls a fleet of approximately 18 dry-bulk carriers. KMH's fleet operations are conducted through a network of single-purpose vehicle ("SPV") subsidiaries incorporated across multiple jurisdictions, a corporate structure that I shall describe in further detail in Section 4 below.
14. KMH is beneficially owned by the Volkov family through a series of holding structures established in the British Virgin Islands and Cyprus. The ultimate beneficial owner and de facto director of KMH is Andrei Volkov, a Ukrainian national resident in Cyprus who exercises effective control over the entire KMH group, including its subsidiaries, fleet operations, and financial affairs. Mr. Volkov's involvement in the direction and management of KMH was extensively canvassed at the LCIA arbitration hearing, and the tribunal made specific findings regarding his role as the directing mind and will of KMH.
15. Other key personnel within the KMH group include:
(a) Sergei Volkov — Director. Mr. Sergei Volkov is the son of Andrei Volkov and serves as a director of KMH and several of its subsidiaries. He is involved in the day-to-day management of KMH's chartering operations.
(b) Marina Kazakova — Chief Financial Officer. Ms. Kazakova oversees the financial operations and treasury functions of the KMH group and its subsidiaries.
(c) Alexei Demidov — Director of Fleet Operations. Mr. Demidov is responsible for the technical and operational management of KMH's fleet of dry-bulk carriers.
16. Prior to the dispute with TSL, I estimate, based on my knowledge of KMH's fleet and market conditions at the relevant time, that the KMH group had an estimated net asset value of approximately USD $280 million. This estimate is based on the aggregate market value of KMH's fleet of approximately 18 dry-bulk carriers, less known encumbrances, and is consistent with valuations and financial information that came to light during the LCIA arbitration proceedings.
17. Critically, KMH was the disponent owner of the three vessels at the centre of the charter-party dispute with TSL. KMH entered into the relevant time charter-party agreements in its capacity as disponent owner, and it was KMH that committed the breaches that gave rise to the claims determined by the LCIA tribunal. KMH is the judgment debtor under the Award.
4. KMH'S CORPORATE STRUCTURE AND SINGAPORE SUBSIDIARY
4.1 Overview of KMH Group Structure
18. KMH operates through a network of SPV subsidiaries incorporated across multiple jurisdictions, including Cyprus, Singapore, the British Virgin Islands ("BVI"), and the United Arab Emirates ("UAE"). This multi-layered corporate structure is characteristic of shipping groups controlled by the Volkov family and, as I explain further below in the context of the dissipation evidence, has been deployed by KMH to disperse and shield assets from legitimate creditors.
19. The principal entities within the KMH group that are relevant to this application are as follows:
(a) KMH (the parent company): Korinthian Maritime Holdings Ltd., incorporated in Cyprus, Registration No. HE 387421, registered at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.
(b) Oceangate Ventures Ltd. (intermediate holding company): Incorporated in Cyprus, Registration No. HE 401293, registered at 28 Themistokli Dervi Avenue, Suite 604, Nicosia 1066, Cyprus. Oceangate Ventures Ltd. is a wholly-owned subsidiary of KMH and serves as an intermediate holding company through which KMH holds its fleet SPVs.
(c) Dnepr Shipholding Inc. (fleet SPV): Incorporated in the British Virgin Islands, BVI Company No. 2014876. The registered agent is Vantage Corporate Services Ltd., Road Town, Tortola, BVI. Dnepr Shipholding Inc. is the registered owner of certain vessels in the KMH fleet, including M/V Aegean Fortuna and M/V Volga Spirit.
(d) Korinthian DMCC (UAE subsidiary): Established in the Dubai Multi Commodities Centre, with its registered address at Unit 3407, Almas Tower, Jumeirah Lake Towers (JLT), Dubai, UAE. Korinthian DMCC is used for certain commercial and agency functions in the Arabian Gulf region.
(e) Korinthian Bulkers (Singapore) Pte. Ltd. (Singapore subsidiary): Described in further detail in Section 4.2 below.
20. The common thread connecting all of these entities is the ultimate beneficial ownership and control exercised by Andrei Volkov and the Volkov family. Funds, charter hire, and vessel sale proceeds flow between these entities according to the directions of Mr. Volkov, and the SPV subsidiaries do not operate independently of KMH's central management.
4.2 Korinthian Bulkers (Singapore) Pte. Ltd.
21. Of particular relevance to this application is Korinthian Bulkers (Singapore) Pte. Ltd. ("Korinthian Singapore"), a private limited company incorporated in the Republic of Singapore. Korinthian Singapore's registered address is at 80 Robinson Road, #14-02, Singapore 068898.
22. Korinthian Singapore is a wholly-owned subsidiary of KMH, held through the intermediate holding company Oceangate Ventures Ltd. (Cyprus, HE 401293). Specifically, Oceangate Ventures Ltd. holds 100% of the issued share capital of Korinthian Singapore, and Oceangate Ventures Ltd. is in turn 100% owned by KMH. The ultimate beneficial owner of Korinthian Singapore is therefore Andrei Volkov and the Volkov family, through their ownership and control of KMH.
23. Korinthian Singapore is the registered owner of M/V Crimson Horizon (IMO 9801334), the vessel that is the subject of the arrest application before this Honourable Court. The vessel is registered in the name of Korinthian Singapore under the Liberian flag.
24. In addition to being the registered owner of M/V Crimson Horizon, Korinthian Singapore maintained operating accounts at Pinnacle Bank (Singapore) Ltd., located at 6 Battery Road, #20-01, Singapore 049909. These accounts were used to receive and hold proceeds from vessel operations, charter hire receivables, and other commercial revenues generated by the operation of M/V Crimson Horizon and other Singapore-based activities of the KMH group. I address these accounts in further detail in Section 11 below.
25. It is important to emphasise that, notwithstanding the fact that M/V Crimson Horizon is registered in the name of Korinthian Singapore (a Singapore-incorporated SPV), the vessel was at all material times under the effective ownership, direction, and commercial management of KMH. It was KMH — not Korinthian Singapore — that entered into the charter-party with TSL as disponent owner of M/V Crimson Horizon, that negotiated the charter terms, and that was responsible for the performance of the charter-party obligations. Korinthian Singapore functioned as a bare registered owner holding the vessel on behalf of the KMH group.
5. THE CHARTER-PARTY AGREEMENTS
26. The dispute between TSL and KMH arises out of three time charter-party agreements entered into between 2019 and 2021, each of which was governed by English law and contained an arbitration clause providing for arbitration under the rules of the London Court of International Arbitration ("LCIA") with the seat of arbitration in London. I now set out the material particulars of each charter-party.
5.1 Charter-Party for M/V *Aegean Fortuna*
27. On 15 March 2019, TSL (as charterer) and KMH (as disponent owner) entered into a time charter-party in respect of the vessel M/V Aegean Fortuna. The key particulars of this charter-party are as follows:
(a) Vessel: M/V Aegean Fortuna, IMO No. 9784521, Supramax Bulk Carrier, 58,200 DWT, marshall Islands flag.
(b) SPV Owner: Dnepr Shipholding Inc. (BVI Company No. 2014876). KMH was the disponent owner and entered into the charter-party in that capacity.
(c) Date of Charter-Party: 15 March 2019.
(d) Parties: TSL (as charterer) and KMH (as disponent owner).
(e) Governing Law: English law.
(f) Arbitration Clause: Clause 45 of the charter-party provided for disputes to be referred to arbitration under the rules of the LCIA, with the seat of arbitration in London. The arbitration clause further provided that the tribunal would consist of three arbitrators.
(g) Charter Period: The charter-party was for a period of 36 months, with an option for TSL to extend for a further 12 months, commencing from the date of delivery of the vessel to TSL. The vessel was delivered to TSL on 28 March 2019.
(h) Hire Rate: The agreed hire rate was USD $16,800 per day for the first 24 months, escalating to USD $17,500 per day for the balance of the charter period, reflecting market conditions prevailing at the time of fixture.
(i) Trading Limits: Worldwide, excluding designated war risk and sanctioned areas as specified in Clause 31.
28. The M/V Aegean Fortuna charter-party was the first of the three fixtures between TSL and KMH, and it established the commercial framework and trust upon which the subsequent charter-party relationships were built.
5.2 Charter-Party for M/V *Crimson Horizon*
29. On 22 January 2020, TSL (as charterer) and KMH (as disponent owner) entered into a time charter-party in respect of the vessel M/V Crimson Horizon. The key particulars of this charter-party are as follows:
(a) Vessel: M/V Crimson Horizon, IMO No. 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag.
(b) SPV Owner: Korinthian Bulkers (Singapore) Pte. Ltd. KMH was the disponent owner and entered into the charter-party in that capacity.
(c) Date of Charter-Party: 22 January 2020.
(d) Parties: TSL (as charterer) and KMH (as disponent owner).
(e) Governing Law: English law.
(f) Arbitration Clause: Clause 45 of the charter-party contained an LCIA arbitration clause identical in all material respects to that in the M/V Aegean Fortuna charter-party, providing for arbitration under the LCIA Rules with the seat of arbitration in London and a tribunal of three arbitrators.
(g) Charter Period: The charter-party was for a period of 30 months, with an option for TSL to extend for a further 12 months, commencing from the date of delivery. The vessel was delivered to TSL on 12 February 2020.
(h) Hire Rate: The agreed hire rate was USD $13,250 per day for the initial 18 months, escalating to USD $14,000 per day thereafter, reflecting the lower rate environment at the time of fixture for Handymax tonnage.
(i) Trading Limits: Worldwide, excluding designated war risk and sanctioned areas as specified in Clause 31.
30. I note that M/V Crimson Horizon — the very vessel that is the subject of the arrest application now before this Honourable Court — was one of the charter-party vessels in the underlying dispute. This vessel was operated under the charter-party for a period of approximately 29 months before KMH ceased paying hire, as I describe in Section 6.2 below.
5.3 Charter-Party for M/V *Volga Spirit*
31. On 10 June 2021, TSL (as charterer) and KMH (as disponent owner) entered into a time charter-party in respect of the vessel M/V Volga Spirit. The key particulars of this charter-party are as follows:
(a) Vessel: M/V Volga Spirit, IMO No. 9756892, Panamax Bulk Carrier, 76,400 DWT, Cyprus flag.
(b) SPV Owner: Dnepr Shipholding Inc. (BVI Company No. 2014876). KMH was the disponent owner and entered into the charter-party in that capacity.
(c) Date of Charter-Party: 10 June 2021.
(d) Parties: TSL (as charterer) and KMH (as disponent owner).
(e) Governing Law: English law.
(f) Arbitration Clause: Clause 45 of the charter-party contained an LCIA arbitration clause on identical terms to those in the M/V Aegean Fortuna and M/V Crimson Horizon charter-parties.
(g) Charter Period: The charter-party was for a period of 24 months, commencing from the date of delivery. The vessel was delivered to TSL on 1 July 2021.
(h) Hire Rate: The agreed hire rate was USD $22,750 per day, reflecting the significantly improved dry-bulk freight market in mid-2021.
(i) Trading Limits: Worldwide, excluding designated war risk and sanctioned areas as specified in Clause 31.
32. The M/V Volga Spirit charter-party was the last of the three fixtures entered into between TSL and KMH. It was agreed at a time when the dry-bulk market was experiencing a strong upcycle, and the hire rate reflected the favourable market conditions prevailing at the date of fixture.
5.4 Exhibit References
33. Copies of the three time charter-party agreements described above are exhibited hereto and marked collectively as Exhibit "DK-1". I draw attention in particular to Clause 45 of each agreement, which contains the LCIA arbitration clause upon which the jurisdiction of the LCIA tribunal was founded. The charter-party agreements are as follows:
(a) Time charter-party for M/V Aegean Fortuna dated 15 March 2019;
(b) Time charter-party for M/V Crimson Horizon dated 22 January 2020; and
(c) Time charter-party for M/V Volga Spirit dated 10 June 2021.
6. KMH'S BREACHES OF THE CHARTER-PARTY AGREEMENTS
34. I now turn to describe the breaches of the charter-party agreements committed by KMH, which gave rise to TSL's claims in the LCIA arbitration and the Award that is now sought to be enforced. Each of these breaches was found by the LCIA tribunal to constitute a repudiatory breach of the relevant charter-party.
6.1 Wrongful Early Redelivery of M/V *Aegean Fortuna*
35. On 18 June 2022, KMH wrongfully redelivered M/V Aegean Fortuna to TSL. This redelivery was effected without the consent or agreement of TSL and occurred approximately 14 months before the contractual redelivery date under the charter-party. The vessel was redelivered at the port of Piraeus, Greece, after discharge of a cargo of Ukrainian grain that had been loaded at the port of Pivdennyi (Yuzhny).
36. The charter-party for M/V Aegean Fortuna had a minimum duration of 36 months from the date of delivery (28 March 2019), which meant that the earliest permissible redelivery date was on or about 28 March 2022, with the charter period potentially extending to 28 March 2023 if TSL exercised its 12-month extension option. TSL had in fact exercised its extension option by written notice dated 15 December 2021. KMH's purported redelivery on 18 June 2022 was therefore approximately 14 months premature and was carried out in defiance of TSL's valid exercise of the extension option.
37. KMH's purported justification for the early redelivery was that the charter-party had been frustrated by sanctions and geopolitical events in the Black Sea region. The LCIA tribunal rejected this defence in its entirety. The tribunal found, at paragraphs 187 to 214 of the Award, that the charter-party had not been frustrated and that KMH's unilateral redelivery constituted a clear repudiatory breach of the charter-party.
38. TSL suffered significant loss as a result of KMH's wrongful early redelivery. TSL was deprived of the use of the vessel for the remaining 14 months of the charter period at a time when the dry-bulk freight market was highly favourable and the hire rate under the charter-party represented an advantageous fixture. The LCIA tribunal assessed damages for this breach in the sum of £42,300,000, reflecting the market differential between the contractual hire rate and the replacement cost of equivalent tonnage over the remaining 14-month period, together with consequential losses.
6.2 Failure to Pay Hire on M/V *Crimson Horizon*
39. From 1 July 2022, KMH ceased making timely payment of hire under the charter-party for M/V Crimson Horizon. Despite repeated demands from TSL's chartering department — including formal written notices that I personally reviewed and approved — KMH failed to cure the default. Hire arrears accrued progressively over the period from 1 July 2022 to 15 September 2022, by which date the total outstanding hire stood at £4,280,000.
40. On 15 September 2022, having exhausted all reasonable efforts to obtain payment and having served the requisite anti-technicality notice, TSL exercised its contractual right to withdraw M/V Crimson Horizon from the charter. The vessel was withdrawn at the port of Singapore and subsequently redelivered to KMH's agents.
41. The LCIA tribunal found that KMH's persistent failure to pay hire constituted a repudiatory breach of the charter-party. The tribunal further found that TSL's withdrawal of the vessel was lawful and justified. In respect of this breach, the tribunal awarded TSL the sum of £28,150,000, comprising:
(a) Outstanding hire arrears: £4,280,000; and
(b) Loss of bargain damages: £23,870,000, representing the difference between the contractual hire rate and the market rate for the remainder of the charter period, together with consequential losses arising from the early termination.
6.3 Fabricated Off-Hire Deductions on M/V *Volga Spirit*
42. In the course of performing the charter-party for M/V Volga Spirit, KMH made a series of off-hire deductions from the hire payable to TSL. These deductions totalled approximately £2,740,000 and were purportedly based on claims that the vessel had been off-hire due to mechanical breakdowns, port delays attributable to the vessel's condition, and alleged deficiencies in the vessel's performance.
43. TSL disputed these deductions throughout the charter period and maintained that the deductions were unjustified and unsupported by the facts. At the LCIA arbitration, the tribunal conducted a detailed examination of the evidence underlying each off-hire deduction claimed by KMH. The tribunal found, at paragraphs 298 to 341 of the Award, that the deductions were fabricated. Specifically, the tribunal found that:
(a) The maintenance logs and surveyor reports relied upon by KMH had been altered or backdated;
(b) The alleged mechanical breakdowns either did not occur or were of a nature and duration that did not entitle KMH to place the vessel off-hire under the charter-party terms;
(c) KMH had deliberately inflated or manufactured off-hire claims in order to reduce its net hire payment obligations to TSL; and
(d) KMH's witnesses, including Mr. Alexei Demidov (Director of Fleet Operations), were not credible in their evidence regarding the off-hire events.
44. The tribunal awarded TSL restitution of £2,740,000 in respect of the fabricated off-hire deductions, representing the full amount that KMH had wrongfully withheld from the hire payable under the M/V Volga Spirit charter-party.
6.4 Pattern of Repudiatory Breach
45. From my position overseeing TSL's chartering operations, I can state that KMH's conduct beginning in mid-2022 constituted what I regard as a deliberate and coordinated pattern of repudiatory breach across all three charter-party agreements. The timing and nature of the breaches — the wrongful redelivery of M/V Aegean Fortuna in June 2022, the cessation of hire payments on M/V Crimson Horizon from July 2022, and the fabricated off-hire deductions on M/V Volga Spirit throughout the latter part of 2022 — strongly suggest that KMH made a calculated decision to repudiate its obligations under all three charters simultaneously.
46. I believe, based on my experience in the shipping industry and my direct dealings with KMH's principals, that this coordinated pattern of breach was motivated by KMH's desire to take advantage of the rising dry-bulk freight market in 2022, which had increased the spot market rates for the three charter-party vessels well above the contractual hire rates fixed with TSL. By redelivering the vessels early or ceasing to pay hire, KMH could re-let the vessels at substantially higher market rates for its own account, at the direct expense of TSL.
47. The impact on TSL's operations and commercial position was severe. TSL had committed to sub-charter, cargo, and logistics arrangements in reliance on the availability of the three charter-party vessels. KMH's breaches forced TSL to scramble to find replacement tonnage at significantly higher market rates, resulting in substantial additional costs and disruption to TSL's supply chain commitments to its own customers. The commercial damage extended beyond the direct financial losses and affected TSL's relationships with key cargo interests and trading partners.
48. The LCIA tribunal acknowledged this pattern of conduct in its Award, noting at paragraph 352 that "KMH's breaches were not isolated incidents but formed part of a deliberate strategy to extricate itself from charter-party commitments that had become commercially unfavourable to KMH in light of the rising freight market."
7. THE LCIA ARBITRATION (No. 224718)
7.1 Commencement and Constitution
49. On 14 November 2022, TSL filed its Request for Arbitration with the London Court of International Arbitration ("LCIA"), commencing arbitration proceedings against KMH. The LCIA assigned Case Reference No. 224718 to the proceedings.
50. The LCIA tribunal was constituted on 8 February 2023, following the appointment of arbitrators in accordance with the LCIA Rules and the arbitration clauses in the three charter-party agreements. The tribunal was composed as follows:
(a) Presiding Arbitrator: Sir Malcolm Fenton-Clarke, appointed by the LCIA Court. Sir Malcolm is a retired judge of the English Commercial Court and a well-known arbitrator specialising in shipping, commodities, and international trade disputes.
(b) Co-Arbitrator (Claimant-nominated): Professor Athena Drakopoulos, nominated by TSL. Professor Drakopoulos is a Professor of Maritime Law at the University of Athens and a practising arbitrator with extensive experience in international shipping disputes.
(c) Co-Arbitrator (Respondent-nominated): Dr. Henrik Dalmqvist, nominated by KMH. Dr. Dalmqvist is a partner at a leading Scandinavian law firm and a well-regarded arbitrator in the field of international commercial and maritime arbitration.
51. The Tribunal Secretary was Ms. Fiona Beckett, a solicitor based in London with experience in international arbitration.
52. The seat of arbitration was London, England, and the governing law of the charter-party agreements (and therefore of the substantive disputes) was English law. The procedural law of the arbitration was the Arbitration Act 1996 (England & Wales), as applicable to arbitrations seated in London.
7.2 Evidentiary Hearing
53. Following an extensive pre-hearing phase that included disclosure of documents, exchange of written witness statements and expert reports, and pre-hearing submissions, the evidentiary hearing took place over 10 hearing days from 11 September 2023 to 22 September 2023. The hearing was held at the International Dispute Resolution Centre ("IDRC"), 70 Fleet Street, London EC4Y 1EU.
54. Both parties were fully represented at the hearing. TSL was represented by Calderwood & Harkness LLP (led by Mr. Samuel Eklund and Ms. Hannah Brinkley), and KMH was represented by Harkness Whitford & Co. (led by Mr. Julian Harkness QC and Ms. Catherine Whitford). Both parties had a full and equal opportunity to present their respective cases, including the examination and cross-examination of factual and expert witnesses.
55. I personally gave factual evidence at the hearing on behalf of TSL. My evidence addressed the chartering operations, the negotiation and performance of the three charter-party agreements, the circumstances of KMH's breaches, and the impact of those breaches on TSL's operations and commercial position. I was cross-examined by Mr. Julian Harkness QC on behalf of KMH over the course of approximately one full hearing day. The tribunal found my evidence to be credible and reliable, as noted in the Award at paragraph 112.
56. The hearing also included the testimony of other factual witnesses for both parties, as well as expert evidence on market rates, vessel valuations, and quantum of damages.
7.3 The Final Award (28 June 2024)
57. Following post-hearing submissions and a period of deliberation, the LCIA tribunal issued its Final Award on 28 June 2024 (the "Award"). The Award was issued unanimously by the three members of the tribunal. A certified copy of the Award is exhibited hereto and marked as Exhibit "DK-2".
58. The tribunal found in TSL's favour on all of its principal claims and awarded damages as follows:
(a) Damages for wrongful early redelivery of M/V *Aegean Fortuna*: £42,300,000;
(b) Outstanding hire and damages for M/V *Crimson Horizon*: £28,150,000 (comprising £4,280,000 in outstanding hire arrears and £23,870,000 in loss of bargain damages);
(c) Restitution of fabricated off-hire deductions for M/V *Volga Spirit*: £2,740,000;
(d) Loss of profit / market differential damages (across all three charters): £16,480,000; and
(e) Pre-award interest at the rate of 5.25% per annum simple, calculated from the respective dates of breach to the date of the Award: £6,780,000.
59. The total amount of the Award (exclusive of costs) is therefore £96,450,000. At the prevailing exchange rate of £1 = USD $1.2441 as at 28 June 2024, this is equivalent to approximately USD $120,000,000.
60. In respect of the costs of the arbitration, the tribunal exercised its discretion to allocate costs on the basis that KMH, as the unsuccessful party, should bear 85% of the total costs. The costs were assessed as follows:
(a) LCIA administrative and tribunal costs: £3,240,000;
(b) TSL's legal costs (on a reasonable basis): £8,910,000;
(c) Total costs ordered against KMH (85% allocation): £12,150,000.
61. The grand total of the amounts payable by KMH under the Award is therefore £108,600,000 (being £96,450,000 in respect of damages and interest, plus £12,150,000 in respect of costs).
62. In addition, the tribunal awarded post-award interest at the rate of 5.25% per annum simple on all unpaid sums from 29 June 2024 until the date of payment. Post-award interest continues to accrue.
7.4 Non-Satisfaction of the Award
63. Despite the Award having been issued on 28 June 2024, KMH has failed to voluntarily satisfy any part of the Award. KMH has not made any payment whatsoever in respect of the Award.
64. A pre-enforcement demand was made on TSL's behalf by Calderwood & Harkness LLP to KMH's solicitors, Harkness Whitford & Co. (12 Fetter Lane, London EC4A 1JP, SRA No. 614823), by letter dated 8 July 2024. The letter demanded payment of the full amount of the Award within 14 days and warned that, in the event of non-compliance, TSL would pursue enforcement proceedings in all available jurisdictions. A copy of this demand letter is exhibited hereto and marked as Exhibit "DK-7".
65. KMH did not comply with the demand. No response was received within the 14-day period, and no response has been received to date. KMH has shown no willingness to honour the Award and has taken active steps to frustrate enforcement, as I describe in Sections 8 and 10 below.
66. TSL has accordingly been compelled to commence enforcement proceedings across multiple jurisdictions in order to recover the sums awarded to it by the tribunal. The present application before this Honourable Court is one component of that multi-jurisdictional enforcement campaign.
8. ENFORCEMENT PROCEEDINGS IN ENGLAND & WALES
67. Given that the Award was issued by a tribunal seated in London and governed by English law, TSL's first enforcement step was to apply to the English courts for recognition and enforcement of the Award. I now summarise the key steps taken in England and Wales, which provide relevant context for the present Singapore application and demonstrate the enforceability and finality of the Award.
68. On 15 July 2024, TSL filed an application in the Commercial Court of England & Wales (Queen's Bench Division, Business and Property Courts) under s. 66 of the Arbitration Act 1996 for permission to enforce the Award as a judgment of the English court. The claim was assigned reference Claim No. CL-2024-000487.
69. On 16 July 2024 — the day after the enforcement application was filed — TSL obtained, on an ex parte (without notice) basis, a Worldwide Freezing Order ("WFO") from Mr. Justice Ashworth of the Commercial Court. The WFO restrained KMH and its subsidiaries from disposing of or dealing with assets worldwide up to the value of £108,600,000. The WFO was granted on the basis that TSL had demonstrated a good arguable case (which, by virtue of the Award, was self-evident) and that there was a real risk of dissipation of assets by KMH. A copy of the WFO is exhibited hereto and marked as Exhibit "DK-5".
70. The WFO was served on KMH and its known subsidiaries, including Korinthian Singapore, and was notified to relevant financial institutions. The WFO was continued with minor modifications at the return date hearing on 30 July 2024, at which KMH was represented by counsel. The modifications principally related to KMH's ordinary course of business expenditure and the terms of the disclosure obligations.
71. On 2 August 2024, Mr. Justice Ashworth granted TSL permission to enforce the Award as a judgment of the Commercial Court under s. 66 of the Arbitration Act 1996. A copy of this order is exhibited hereto and marked as Exhibit "DK-6".
72. On 19 August 2024, KMH filed an application to set aside the Award pursuant to ss. 68 and 69 of the Arbitration Act 1996, contending (among other things) that there had been a serious irregularity affecting the tribunal's procedure and that the tribunal had erred on a point of law. This application was heard by Mr. Justice Ashworth on 7 October 2024 and was dismissed by judgment dated 11 October 2024. The court found that none of the grounds raised by KMH had any merit and that the Award was properly rendered. KMH has not sought permission to appeal the dismissal.
73. In parallel with the enforcement and set-aside proceedings, TSL obtained a third-party debt order against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA), where KMH maintained certain accounts. An interim third-party debt order was made on 5 August 2024, and a final third-party debt order was made on 3 September 2024. Pursuant to the final order, the sum of £18,720,000 was garnished from KMH's accounts at Meridian Trust Bank Ltd. and paid to TSL's solicitors in part satisfaction of the Award.
74. The English enforcement proceedings are of direct relevance to the present Singapore application for the following reasons:
(a) The Award has been found by the English Commercial Court — the supervisory court of the arbitration — to be enforceable, and KMH's challenge to the Award has been heard and dismissed;
(b) The grant of the WFO demonstrates that the English court was satisfied that there existed a real risk of dissipation of assets by KMH;
(c) The amount recovered through the third-party debt order in England (£18,720,000) constitutes only a fraction of the total Award of £108,600,000, leaving a very substantial unsatisfied balance; and
(d) TSL continues to pursue enforcement in multiple jurisdictions because KMH's assets are dispersed internationally and the English garnishment has been insufficient to satisfy the Award.
9. M/V *CRIMSON HORIZON* — VESSEL PARTICULARS AND BENEFICIAL OWNERSHIP
9.1 Vessel Particulars
75. The vessel that is the subject of the arrest application before this Honourable Court is M/V Crimson Horizon. The key particulars of the vessel are as follows:
76. The vessel was built in 2018 at the Penmark Corporation yard in Numakuma, Japan, and is classed with Bureau Veritas. Based on my knowledge and experience in the shipping industry, M/V Crimson Horizon is a modern, well-maintained vessel with significant remaining commercial life. The vessel has been employed in the dry-bulk trade, primarily carrying grain, coal, and minor bulk cargoes in the Asia-Pacific and Indian Ocean regions.
9.2 Beneficial Ownership Chain
77. M/V Crimson Horizon is registered in the name of Korinthian Bulkers (Singapore) Pte. Ltd. ("Korinthian Singapore"), the Singapore-incorporated SPV that I have described in Section 4.2 above.
78. However, as I have explained, Korinthian Singapore is merely a registered owner holding the vessel as part of the KMH group structure. The beneficial ownership chain is as follows:
(a) M/V Crimson Horizon is registered in the name of Korinthian Bulkers (Singapore) Pte. Ltd., a Singapore-incorporated company;
(b) Korinthian Singapore is a wholly-owned subsidiary of Oceangate Ventures Ltd. (Cyprus, Registration No. HE 401293), an intermediate holding company within the KMH group;
(c) Oceangate Ventures Ltd. is in turn 100% owned by Korinthian Maritime Holdings Ltd. (Cyprus, Registration No. HE 387421), the Respondent and judgment debtor under the Award; and
(d) KMH is ultimately beneficially owned and controlled by Andrei Volkov and the Volkov family through a series of BVI and Cypriot holding structures.
79. The beneficial ownership chain has been confirmed by a forensic analysis conducted by Hartwell Pemberton LLP, a specialist corporate intelligence and asset-tracing firm instructed by Calderwood & Harkness LLP on behalf of TSL. Hartwell Pemberton's analysis traced the corporate ownership records, shareholder registers, and financial flows between KMH and Korinthian Singapore, confirming that Korinthian Singapore is a wholly-owned subsidiary of KMH (held through Oceangate Ventures Ltd.) and that the vessel is beneficially owned by KMH. Relevant extracts from Hartwell Pemberton's findings are exhibited hereto and marked as Exhibit "DK-8".
80. A corporate structure chart illustrating the ownership chain from KMH through Oceangate Ventures Ltd. to Korinthian Bulkers (Singapore) Pte. Ltd. and ultimately to M/V Crimson Horizon is exhibited hereto and marked as Exhibit "DK-3".
81. Relevant corporate registry extracts and filings evidencing the beneficial ownership chain, including extracts from the Cyprus Registrar of Companies (for KMH and Oceangate Ventures Ltd.) and the Singapore Accounting and Corporate Regulatory Authority ("ACRA") (for Korinthian Singapore), are exhibited hereto and marked as Exhibit "DK-4".
82. I further note that KMH controlled the chartering, operations, and commercial management of M/V Crimson Horizon through Korinthian Singapore at all material times. As I have described in Section 5.2 above, it was KMH — not Korinthian Singapore — that entered into the charter-party with TSL as disponent owner. Charter hire payments were invoiced by KMH, commercial instructions to the vessel's master were issued by KMH's chartering department (with which I dealt directly), and the proceeds of the vessel's operations flowed through Korinthian Singapore's accounts at Pinnacle Bank (Singapore) Ltd. and were ultimately repatriated to KMH and its other subsidiaries.
9.3 Basis for Arrest — Associated Ship / Beneficial Ownership
83. The arrest of M/V Crimson Horizon is sought on the basis that the vessel is beneficially owned by KMH, the judgment debtor under the Award, and is therefore an "associated ship" within the meaning of Singapore admiralty law.
84. Under the High Court (Admiralty Jurisdiction) Act (Cap. 123) of Singapore, the court has jurisdiction to hear and determine admiralty claims in rem, and an action in rem may be brought against a ship that is beneficially owned by the person who would be liable on the claim in an action in personam. Where the person who would be liable in personam is the beneficial owner of a vessel, and that vessel is within Singapore jurisdiction, the vessel may be arrested as security for the claim.
85. In the present case:
(a) KMH is the judgment debtor under the Award and would be liable in personam in respect of the claim underlying the enforcement judgment sought in OS 872/2024;
(b) KMH is the beneficial owner of M/V Crimson Horizon, held through the wholly-owned intermediary chain described above (KMH → Oceangate Ventures Ltd. → Korinthian Singapore → M/V Crimson Horizon);
(c) M/V Crimson Horizon is within Singapore jurisdiction, having been present in Singapore waters as at the date of filing of this application; and
(d) M/V Crimson Horizon is one of the very vessels that was at the centre of the underlying charter-party dispute, having been the subject of the charter-party described in Section 5.2 above.
86. Accordingly, the arrest of M/V Crimson Horizon is sought as security for the enforcement of the Award, and I respectfully submit that the conditions for arrest under Singapore admiralty law are satisfied.
10. RISK OF DISSIPATION AND URGENCY OF ARREST
10.1 Post-Award Asset Dissipation by KMH