IN THE HIGH COURT OF THE REPUBLIC OF SINGAPORE GENERAL DIVISION
ORIGINATING SUMMONS NO. 872 OF 2024
SUMMONS NO. __ OF 2024
BETWEEN
THALASSA SHIPPING & LOGISTICS SA (Société Anonyme organised under the laws of the Hellenic Republic) (AFM: EL-801456729) 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece
... Judgment Creditor / Applicant
AND
KORINTHIAN MARITIME HOLDINGS LTD. (Private limited company incorporated in the Republic of Cyprus) (Registration No. HE 387421) 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus
... Judgment Debtor
AND
PINNACLE BANK (SINGAPORE) LTD. 6 Battery Road, #20-01, Singapore 049909
... Garnishee
APPLICATION FOR GARNISHEE ORDER TO SHOW CAUSE PURSUANT TO ORDER 49 OF THE RULES OF COURT 2021
Filed by Straits Meridian LLP, Solicitors for the Judgment Creditor, 1 Raffles Place, #44-01 One Raffles Place Tower 2, Singapore 048616. Instructed by Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, United Kingdom (lead enforcement counsel).
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1. TITLE AND NATURE OF APPLICATION
1. This is an application by the Judgment Creditor, Thalassa Shipping & Logistics SA ("TSL" or the "Applicant"), for a Garnishee Order to Show Cause pursuant to Order 49 of the Rules of Court 2021 (the "ROC 2021"), directed to Pinnacle Bank (Singapore) Ltd. (the "Garnishee"), requiring the Garnishee to attend before this Honourable Court and show cause why it should not pay to the Judgment Creditor the debts due or accruing due from the Garnishee to the Judgment Debtor, Korinthian Maritime Holdings Ltd. ("KMH" or the "Judgment Debtor"), and/or its wholly-owned subsidiary, Korinthian Bulkers (Singapore) Pte. Ltd. ("KBSPL"), sufficient to satisfy the judgment debt.
2. This application is filed in connection with Originating Summons No. 872 of 2024 ("OS 872/2024"), by which the Judgment Creditor obtained leave of this Honourable Court to enforce a final arbitration award issued by a tribunal constituted under the Rules of the London Court of International Arbitration ("LCIA") in LCIA Arbitration Case No. 224718, dated 28 June 2024 (the "Award"), as a judgment of the Singapore High Court pursuant to Section 19 of the International Arbitration Act (Cap. 143A) (the "IAA") and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards done at New York on 10 June 1958 (the "New York Convention"), as incorporated into Singapore law.
3. Leave to enforce the Award was granted by this Honourable Court on 6 September 2024. The Award has thereby been recognised and is enforceable as a judgment of the Singapore High Court. Notwithstanding the grant of leave to enforce, the Judgment Debtor has failed to satisfy the Award, whether in whole or in part (save for amounts garnished in other jurisdictions as set out below), and remains substantially indebted to the Judgment Creditor.
2. ORDERS SOUGHT
4. The Judgment Creditor respectfully seeks the following orders from this Honourable Court:
2.1 Garnishee Order to Show Cause
5. An order that the Garnishee, Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909), attend before this Honourable Court on a date to be fixed and show cause why it should not pay to the Judgment Creditor all debts due or accruing due from the Garnishee to the Judgment Debtor and/or to KBSPL (80 Robinson Road, #14-02, Singapore 068898), being a wholly-owned subsidiary of the Judgment Debtor, sufficient to satisfy the judgment debt.
6. Specifically, the Applicant seeks that the Garnishee show cause why it should not pay the sum of SGD $31,200,000 (Singapore Dollars Thirty-One Million Two Hundred Thousand) or such amount as stands to the credit of any and all accounts held by KBSPL and/or KMH at Pinnacle Bank (Singapore) Ltd., or so much thereof as may be sufficient to satisfy the judgment debt, together with interest accrued thereon and the costs of this application.
7. Pending the hearing of the Garnishee Order to Show Cause, the Garnishee be restrained from making any payment out of, transferring, dealing with, diminishing, or otherwise disposing of any funds standing to the credit of any account held in the name of KBSPL and/or KMH at Pinnacle Bank (Singapore) Ltd.
2.2 Garnishee Order Absolute
8. That, upon the Garnishee failing to show sufficient cause at the return date hearing, the Garnishee Order to Show Cause be made absolute and the Garnishee be ordered to pay to the Judgment Creditor the sums standing to the credit of the Judgment Debtor and/or KBSPL at Pinnacle Bank (Singapore) Ltd., up to the amount of the outstanding judgment debt, inclusive of post-award interest and costs.
2.3 Costs
9. That the costs of and incidental to this application, including but not limited to the costs of obtaining the Garnishee Order to Show Cause, the costs of service, and the costs of the return date hearing, be borne by the Judgment Debtor and be added to the judgment debt.
10. Such further or other relief as this Honourable Court deems fit.
3. GROUNDS OF APPLICATION
3.1 The Underlying Judgment — Enforcement of LCIA Award No. 224718
11. On 28 June 2024, a final arbitration award was issued in LCIA Case No. 224718 (the "Award") by a tribunal duly constituted under the LCIA Arbitration Rules 2020, with the seat of arbitration in London, England. The tribunal was composed of the following members:
(a) Presiding Arbitrator: Sir Malcolm Fenton-Clarke;
(b) Co-Arbitrator (nominated by the Claimant, Thalassa Shipping & Logistics SA): Professor Athena Drakopoulos;
(c) Co-Arbitrator (nominated by the Respondent, Korinthian Maritime Holdings Ltd.): Dr. Henrik Dalmqvist; and
(d) Tribunal Secretary: Ms. Fiona Beckett.
12. The Award was rendered in favour of Thalassa Shipping & Logistics SA, as Claimant in the arbitration, against Korinthian Maritime Holdings Ltd., as Respondent in the arbitration. The arbitral proceedings were conducted over a period of approximately eighteen months, with an evidentiary hearing held in London over fifteen sitting days between 11 March 2024 and 4 April 2024. The tribunal received extensive written and oral evidence, including expert evidence on market rates, vessel valuations, and quantum of loss.
13. The dispute giving rise to the arbitration arose from three time charter-party agreements, each governed by English law, entered into between the parties between 2019 and 2021 for the charter of three dry-bulk carriers:
(a) M/V *Aegean Fortuna* (IMO 9784521) — Time Charter-Party dated 15 March 2019, for a period of 60 months;
(b) M/V *Crimson Horizon* (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag) — Time Charter-Party dated 22 January 2020, for a period of 48 months; and
(c) M/V *Volga Spirit* (IMO 9756892) — Time Charter-Party dated 10 June 2021, for a period of 36 months.
14. The tribunal found, on the merits, that KMH had engaged in repudiatory breaches of each of the three charter-party agreements, as follows:
(a) Wrongful early redelivery of M/V *Aegean Fortuna*: KMH redelivered the vessel on 18 June 2022, approximately 14 months prior to the contractual redelivery date, without any contractual entitlement to do so and in circumstances constituting a renunciation of its obligations under the charter-party. The tribunal rejected KMH's purported reliance on a force majeure clause and found that the early redelivery was motivated by a decline in freight rates which had rendered the charter uneconomic for KMH.
(b) Failure to pay hire on M/V *Crimson Horizon*: KMH failed to make any payment of hire from 1 July 2022 onwards, in deliberate and sustained breach of its payment obligations under the charter-party. By the time TSL exercised its contractual right of withdrawal on 15 September 2022, arrears of £4,280,000 had accrued. The tribunal found that KMH's non-payment was wilful and formed part of a broader strategy to extract itself from its charter commitments at a time of declining market conditions.
(c) Fabricated off-hire deductions on M/V *Volga Spirit*: KMH applied a series of off-hire deductions totalling approximately £2,740,000 against hire payments due under the M/V Volga Spirit charter-party. The tribunal found that these deductions were fabricated and not supported by any genuine off-hire events. The tribunal made express findings that KMH had submitted falsified survey reports and engineer's logs in support of its off-hire claims.
15. The tribunal's findings on liability were unanimous. Its findings on quantum, as set out in the following section, were also unanimous.
3.2 Award Amounts
16. The tribunal awarded the following sums to TSL:
(a) Damages for wrongful early redelivery of M/V *Aegean Fortuna*: £42,300,000, computed as the difference between the charter-party rate and the market rate for the unexpired period of the charter, together with incidental losses arising from the early redelivery, including repositioning costs and lost employment opportunities.
(b) Outstanding hire and damages for M/V *Crimson Horizon*: £28,150,000, comprising:
(i) Outstanding hire arrears of £4,280,000, representing the unpaid hire for the period from 1 July 2022 to 15 September 2022; and
(ii) Loss of bargain damages of £23,870,000, representing the net present value of the hire that would have been earned over the remaining charter-party period, less the earnings that TSL was able to obtain through mitigation.
(c) Restitution of fabricated off-hire deductions for M/V *Volga Spirit*: £2,740,000, representing the total amount of fabricated off-hire deductions wrongfully withheld by KMH from hire payments.
(d) Loss of profit / market differential damages: £16,480,000, representing additional losses suffered by TSL as a result of KMH's repudiatory breaches across the three charters, including the loss of favourable market conditions and the cost of cover chartering arrangements.
(e) Pre-award interest at 5.25% per annum simple: £6,780,000, calculated on the principal sums from the respective dates of accrual to the date of the Award.
17. The total principal amount of the Award is accordingly £96,450,000.
18. In addition, the tribunal ordered an allocation of costs, determining that KMH should bear 85% of the total costs of the arbitration. This allocation resulted in the following costs award:
(a) LCIA administrative costs and arbitrators' fees: £3,240,000; and
(b) TSL's legal costs (solicitors' fees, counsel's fees, expert fees, and disbursements): £8,910,000.
19. The total costs payable by KMH to TSL accordingly amount to £12,150,000.
20. The grand total of the Award, inclusive of costs, is £108,600,000 (approximately USD $120,000,000 at the prevailing exchange rate of £1 = USD $1.2441 as at the date of the Award, 28 June 2024).
21. The tribunal further ordered that post-award interest shall accrue on all unpaid sums at the rate of 5.25% per annum simple from 29 June 2024 until the date of payment. A computation of the judgment debt as at the date of this application, including accrued post-award interest and credits for amounts recovered in other jurisdictions, is set out in the Schedule annexed hereto.
3.3 Singapore Enforcement Order
22. On 14 August 2024, TSL filed Originating Summons No. 872 of 2024 in the Singapore High Court (General Division), seeking leave to enforce LCIA Award No. 224718 pursuant to Section 19 of the IAA and Articles II, III, and IV of the New York Convention, as incorporated into Singapore law by Section 27 of the IAA.
23. The application was heard on an ex parte basis and, by order dated 6 September 2024, this Honourable Court granted leave to TSL to enforce the Award in the same manner as a judgment of the High Court. A certified copy of the Order dated 6 September 2024 is exhibited at Exhibit 3.
24. The Award has thereby been recognised and is enforceable as a judgment of the Singapore High Court for all purposes, including for the purposes of garnishee proceedings under Order 49 of the ROC 2021.
25. The Judgment Debtor has not applied to set aside the order granting leave to enforce. The time for any such application has expired. The Judgment Debtor has failed and/or refused to satisfy the Award, whether in whole or in part (save for amounts garnished in England & Wales as described below). As at the date of this application, the Judgment Debtor remains substantially indebted to the Judgment Creditor in the sum set out in the Schedule hereto.
3.4 Identification of Debts Due from the Garnishee to the Judgment Debtor
26. The Judgment Creditor has identified that Pinnacle Bank (Singapore) Ltd. maintains one or more bank accounts in the name of Korinthian Bulkers (Singapore) Pte. Ltd. ("KBSPL"), a private limited company incorporated in Singapore with its registered address at 80 Robinson Road, #14-02, Singapore 068898.
27. KBSPL is a wholly-owned subsidiary of the Judgment Debtor, KMH. The shareholding structure is as follows: KMH (Registration No. HE 387421, Cyprus) holds 100% of the shares in Oceangate Ventures Ltd. (Registration No. HE 401293, Cyprus) (the "Intermediate Holding Company"), which in turn holds 100% of the shares in KBSPL. The corporate registry records establishing this ownership chain are exhibited at Exhibit 5.
28. The funds standing to the credit of KBSPL at Pinnacle Bank (Singapore) Ltd. include, inter alia, proceeds from the sale and operation of vessels, including proceeds from the sale of M/V Crimson Horizon (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag), which was formerly owned by KBSPL. It is a matter of particular significance that M/V Crimson Horizon was one of the three vessels that was the subject of the underlying charter-party disputes and the Award.
29. Asset tracing investigations have been conducted by Hartwell Pemberton LLP, a firm of forensic accountants based at 25 Old Broad Street, London EC2N 1HN, under the direction of Ms. Rebecca Saunders (Partner) and Mr. Mark Huxley (Director). The preliminary findings of those investigations are set out in the Asset Tracing Report dated 15 August 2024 (the "Preliminary Report"), exhibited at Exhibit 4.
30. On the basis of the Preliminary Report and further supplementary investigations, it is believed that the sum of approximately SGD $31,200,000 stands to the credit of one or more accounts held in the name of KBSPL at Pinnacle Bank (Singapore) Ltd. as at the date of this application. These funds include:
(a) Proceeds from the sale of M/V Crimson Horizon, which was sold by KBSPL on or about 12 July 2024, after the date of the Award, for a sale price believed to be in the region of USD $22,000,000;
(b) Accumulated freight earnings and charter hire payments received by KBSPL in the ordinary course of its operations on behalf of the KMH group; and
(c) Other operational revenues deposited into the accounts.
31. These funds constitute debts due or accruing due from the Garnishee (Pinnacle Bank (Singapore) Ltd.) to KBSPL, and by extension to the Judgment Debtor (KMH), and are amenable to garnishment under Order 49 of the ROC 2021.
3.5 The Corporate Relationship — Basis for Garnishing the Subsidiary's Accounts
32. The Judgment Creditor submits that the funds held by KBSPL at Pinnacle Bank (Singapore) Ltd. are properly amenable to garnishment in satisfaction of the judgment debt owed by KMH, on the following grounds.
33. KBSPL is a wholly-owned subsidiary of the Judgment Debtor through the following corporate chain:
Korinthian Maritime Holdings Ltd. (HE 387421, Cyprus) → 100% owner of → Oceangate Ventures Ltd. (HE 401293, Cyprus) → 100% owner of → Korinthian Bulkers (Singapore) Pte. Ltd. (Singapore)
34. KBSPL does not operate independently but functions as the operational and fund-holding entity for KMH's Singapore operations. The evidence demonstrates that:
(a) KBSPL acts as a conduit through which KMH channels revenues from its Singapore-based shipping operations, including charter hire, freight earnings, and vessel sale proceeds;
(b) The Judgment Debtor, through its ultimate beneficial owner, Mr. Andrei Volkov, and its director, Mr. Sergei Volkov (the son of Mr. Andrei Volkov), exercises complete de facto control over KBSPL, including the deployment and disposition of its funds. Mr. Sergei Volkov is a director of both KMH and KBSPL;
(c) Key operational decisions concerning KBSPL are made by officers of the KMH group, specifically Mr. Alexei Demidov, Director of Fleet Operations, and Ms. Marina Kazakova, Chief Financial Officer, both of whom manage the operational activities of KBSPL on behalf of KMH and report directly to Mr. Sergei Volkov;
(d) KBSPL has no independent commercial purpose apart from serving the interests of the KMH group and does not carry on any business activities that are not directed and controlled by KMH;
(e) Funds have been moved freely between KMH, Oceangate Ventures Ltd., and KBSPL without regard to corporate formalities, as documented in the asset tracing reports prepared by Hartwell Pemberton LLP.
35. In the circumstances, the funds held by KBSPL at Pinnacle Bank (Singapore) Ltd. properly constitute assets available for enforcement of the judgment debt. The Judgment Creditor relies upon the analysis prepared by Calderwood & Harkness LLP and Hartwell Pemberton LLP on the beneficial ownership chain, as set out in the asset tracing reports dated 15 August 2024 and 1 October 2024, exhibited at Exhibits 4 and 7 respectively.
36. The Judgment Creditor further submits that, to the extent necessary, KBSPL should be treated as the alter ego of the Judgment Debtor for the purposes of enforcement, given the complete unity of interest and ownership between the two entities and the use of the corporate structure to hold assets beyond the reach of creditors.
3.6 Urgency and Risk of Dissipation
37. There is a real and imminent risk that the Judgment Debtor will seek to dissipate, transfer, or otherwise remove the funds held at Pinnacle Bank (Singapore) Ltd. beyond the reach of this Honourable Court and the Judgment Creditor. The Judgment Creditor relies on the following matters in support of this submission.
38. First, evidence of post-award asset dissipation by KMH has been documented by Hartwell Pemberton LLP in its supplementary asset tracing report dated 1 October 2024 (extracts exhibited at Exhibit 7). In the period between 28 June 2024 (the date of the Award) and 28 August 2024 (a period of two months), the following transactions were identified:
(a) Transfers from accounts held by KMH and its subsidiaries to entities controlled by the Volkov family, including transfers to accounts held in the names of family members and family-controlled trusts in jurisdictions including the British Virgin Islands and the United Arab Emirates;
(b) The sale of M/V Crimson Horizon by KBSPL on or about 12 July 2024, shortly after the Award was issued, in circumstances suggesting that the sale was effected for the purpose of converting the vessel into liquid funds which could be more easily dissipated;
(c) Transfers of funds from KBSPL's accounts at Pinnacle Bank (Singapore) Ltd. to accounts held by Korinthian DMCC (Unit 3407, Almas Tower, Jumeirah Lake Towers, Dubai) at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai), a UAE entity within the KMH group structure, in amounts which Hartwell Pemberton LLP estimates to exceed USD $8,000,000 in aggregate.
39. Second, the Commercial Court of England and Wales has already made an express finding of a real risk of dissipation. On 16 July 2024, Mr. Justice Ashworth of the Commercial Court granted a Worldwide Freezing Order in Claim No. CL-2024-000487 (the "WFO") freezing KMH's assets worldwide up to the value of £108,600,000. A certified copy of the WFO is exhibited at Exhibit 6. On the return date hearing on 30 July 2024, the WFO was continued with modifications, the learned judge having been satisfied that there was a real risk that the Judgment Debtor would dissipate its assets so as to render any judgment or award unenforceable or substantially more difficult to enforce.
40. Third, the evidence demonstrates that KMH has dispersed its assets internationally through a complex structure of entities incorporated in the British Virgin Islands, the Republic of Cyprus, Singapore, and the United Arab Emirates, designed to frustrate the collection efforts of its creditors. The KMH group structure is characterised by the use of multiple layers of intermediate holding companies, nominee directors, and opaque beneficial ownership arrangements, all of which are designed to conceal the true location and ownership of assets.
41. In the circumstances, the Judgment Creditor respectfully submits that there is an urgent need for a Garnishee Order to Show Cause to be granted, together with an interim restraint on the Garnishee preventing any payment out of or dealing with the relevant accounts, in order to preserve the funds pending the return date hearing.
3.7 Parallel Enforcement Proceedings
42. The Judgment Creditor wishes to inform this Honourable Court, in the interests of full and frank disclosure, that enforcement proceedings in respect of the Award are being pursued in multiple jurisdictions, as set out below. The Applicant undertakes to credit any amounts recovered in other jurisdictions against the total judgment debt so as to prevent double recovery.
England and Wales
43. Permission to enforce the Award as a judgment of the High Court of England and Wales was granted on 2 August 2024 in Claim No. CL-2024-000487 in the Commercial Court.
44. A third-party debt order was sought against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA), the Judgment Debtor's London bankers. An interim third-party debt order was granted on 5 August 2024, and a final third-party debt order was made on 3 September 2024, resulting in the garnishment of £18,720,000 from accounts held by KMH at Meridian Trust Bank Ltd.
45. KMH filed an application to set aside the Award on 19 August 2024 under Sections 68 and 69 of the Arbitration Act 1996 (England and Wales), alleging serious irregularity and errors of law. That application was heard and dismissed by Mr. Justice Ashworth on 11 October 2024. The learned judge held that none of the grounds raised by KMH disclosed any serious irregularity within the meaning of Section 68 or any error of law within the meaning of Section 69. No appeal has been lodged.
Cyprus.
46. An application for recognition and enforcement of the Award was filed on 9 August 2024 in the Nicosia District Court (Case No. 2247/2024). A freezing injunction over KMH's assets in Cyprus was granted on 12 August 2024.
47. Local counsel acting for TSL in Cyprus are Kyprianos Makrides & Partners (Mr. Andreas Kyprianos and Ms. Nadia Makrides), 15 Grivas Digenis Avenue, Nicosia 1066, Cyprus. Opposing counsel acting for KMH in the Cyprus proceedings are Vassiliadis & Economou LLC (Mr. Georgios Vassiliadis and Ms. Eleni Economou).
48. The Cyprus enforcement proceedings remain pending as at the date of this application.
United Arab Emirates
49. An enforcement application was filed on 22 August 2024 in the Dubai Court of First Instance (Case No. 1893/2024). A precautionary attachment was granted on 28 August 2024 over the accounts of Korinthian DMCC (Unit 3407, Almas Tower, Jumeirah Lake Towers, Dubai) held at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai).
50. Local counsel acting for TSL in the UAE are Al-Rashid Hatem & Associates (Mr. Tariq Al-Rashid and Ms. Leila Hatem), Office 1802, Emirates Financial Towers (South Tower), DIFC, Dubai, United Arab Emirates.
51. The UAE enforcement proceedings remain pending as at the date of this application.
Coordination of Multi-Jurisdictional Enforcement
52. Calderwood & Harkness LLP, as lead enforcement counsel, is coordinating the multi-jurisdictional enforcement strategy on behalf of TSL. The Applicant undertakes to this Honourable Court that it will not seek to recover more than the total amount of the judgment debt (inclusive of post-award interest and costs) across all jurisdictions, and that any amounts recovered in other jurisdictions will be promptly credited against the outstanding balance so as to prevent double recovery. The Schedule annexed to this application sets out the current computation of the judgment debt, taking into account amounts already recovered.
4. SUPPORTING EVIDENCE
4.1 Affidavit in Support
53. This application is supported by the Affidavit of Captain Dimitrios Kouretas, Head of Chartering and Operations at Thalassa Shipping & Logistics SA, filed in OS 872/2024 (the "Supporting Affidavit"). Captain Kouretas' Supporting Affidavit sets out the factual background of the charter-party disputes, the conduct of the LCIA arbitration, the issuance of the Award, and the circumstances giving rise to the need for enforcement proceedings in Singapore. Captain Kouretas has personal knowledge of the commercial relationship between TSL and KMH and was directly involved in the management of the three charter-parties that formed the subject matter of the arbitration.
54. In addition, a supplemental affidavit verifying the matters set out in this application, including the identification of accounts held at Pinnacle Bank (Singapore) Ltd. and the basis for the garnishment sought, will be filed together with this application.
4.2 Exhibits to be Filed with this Application
55. The following exhibits are filed in support of this application:
Exhibit 1: Certified copy of LCIA Award No. 224718 dated 28 June 2024, including the tribunal's findings on liability, quantum, interest, and costs.
Exhibit 2: Certified copies of the arbitration agreements, being the arbitration clauses contained in each of the three charter-party agreements dated 15 March 2019, 22 January 2020, and 10 June 2021 respectively, each providing for LCIA arbitration seated in London and governed by English law.
Exhibit 3: Certified copy of the Order of the Singapore High Court (General Division) dated 6 September 2024, granting leave to enforce LCIA Award No. 224718 as a judgment of the High Court pursuant to Section 19 of the International Arbitration Act (Cap. 143A) (OS 872/2024).
Exhibit 4: Asset Tracing Report — Preliminary Findings prepared by Hartwell Pemberton LLP (Ms. Rebecca Saunders, Partner; Mr. Mark Huxley, Director), 25 Old Broad Street, London EC2N 1HN, dated 15 August 2024, identifying accounts maintained at Pinnacle Bank (Singapore) Ltd. in the name of Korinthian Bulkers (Singapore) Pte. Ltd. and the approximate balances held therein.
Exhibit 5: Corporate registry search records for Korinthian Bulkers (Singapore) Pte. Ltd. obtained from the Accounting and Corporate Regulatory Authority of Singapore ("ACRA"), together with corporate registry extracts from the Department of Registrar of Companies and Official Receiver of the Republic of Cyprus for Korinthian Maritime Holdings Ltd. (HE 387421) and Oceangate Ventures Ltd. (HE 401293), establishing the ownership chain from KMH through Oceangate Ventures Ltd. to KBSPL.
Exhibit 6: Certified copy of the Worldwide Freezing Order of the Commercial Court of England and Wales dated 16 July 2024, granted by Mr. Justice Ashworth in Claim No. CL-2024-000487, freezing the assets of KMH worldwide up to the value of £108,600,000, together with the order made on the return date hearing on 30 July 2024 continuing the WFO with modifications.
Exhibit 7: Evidence of post-award asset dissipation, comprising extracts from Hartwell Pemberton LLP's supplementary asset tracing report dated 1 October 2024 and Calderwood & Harkness LLP's analysis of post-award transfers, documenting the movement of funds from KMH and its subsidiaries to entities controlled by the Volkov family between 28 June 2024 and 28 August 2024.
5. LEGISLATIVE BASIS
56. This application is made pursuant to and in reliance upon the following legislative provisions:
(a) Order 49 of the Rules of Court 2021 (Singapore) — which governs garnishee proceedings and provides that, where a person (the judgment creditor) has obtained a judgment or order for the payment of money, and any other person within the jurisdiction (the garnishee) is indebted to the judgment debtor, the court may order the garnishee to pay the judgment creditor the amount of the debt due from the garnishee to the judgment debtor, or so much thereof as is sufficient to satisfy the judgment debt.
(b) Section 19 of the International Arbitration Act (Cap. 143A) — which provides that an award on an arbitration agreement may, by leave of the High Court, be enforced in the same manner as a judgment or order of the Court, and that where leave is so given, judgment may be entered in terms of the award.
(c) Articles II, III, and IV of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) — as incorporated into Singapore law by Part III of the IAA — which require Contracting States to recognise and enforce foreign arbitral awards, subject only to the limited grounds for refusal set out in Article V.
57. The Award satisfies all of the requirements for enforcement under the IAA and the New York Convention: (a) it is a final and binding award on an arbitration agreement; (b) it was made in England, which is a Contracting State to the New York Convention; (c) it has been duly recognised by this Honourable Court; and (d) none of the grounds for refusal of recognition or enforcement under Article V of the New York Convention, or Section 31 of the IAA, are applicable. Leave to enforce has been granted and remains in force.
6. SERVICE
58. The Judgment Creditor proposes that notice of this application and the Garnishee Order to Show Cause (if granted) be served on the following parties:
(a) Pinnacle Bank (Singapore) Ltd. (the Garnishee), at its registered address: 6 Battery Road, #20-01, Singapore 049909;
(b) Korinthian Maritime Holdings Ltd. (the Judgment Debtor), at its registered address: 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus, and through its solicitors on record, Harkness Whitford & Co. (SRA Registration No. 614823), 12 Fetter Lane, London EC4A 1JP, who have accepted service on behalf of KMH in the related English proceedings and have been in correspondence with Calderwood & Harkness LLP in connection with the enforcement proceedings; and
(c) Korinthian Bulkers (Singapore) Pte. Ltd. (the account holder), at its registered address: 80 Robinson Road, #14-02, Singapore 068898.
59. Service on the Garnishee and on KBSPL can be effected within Singapore by personal service or by prepaid registered post in accordance with the ROC 2021. Service on the Judgment Debtor at its Cyprus registered address may be effected by international registered post and/or through its solicitors, Harkness Whitford & Co., who have authority to accept service on its behalf.
7. SOLICITORS' DETAILS
60. This application is filed by:
Straits Meridian LLP Solicitors for the Judgment Creditor in Singapore 1 Raffles Place, #44-01 One Raffles Place Tower 2 Singapore 048616
Partner having conduct: David Teo Wei Lin Senior Associate: Priya Subramaniam
Telephone: +65 6221 8800 Facsimile: +65 6221 8801
Email: david.teo@straitsmeridian.com.sg / priya.subramaniam@straitsmeridian.com.sg
Reference: DTW/PS/KOR/2024-0872
61. Straits Meridian LLP acts on the instructions of lead enforcement counsel:
Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom
Responsible Partner: Samuel Eklund Lead Associate: Hannah Brinkley Working Associate: Patrick Gallagher
Telephone: +44 20 7490 6000 Facsimile: +44 20 7490 6001
Email: s.eklund@calderwoodharkness.com / h.brinkley@calderwoodharkness.com
Reference: SE/HB/PG/TSL-KMH/2024
62. All communications in respect of this application should be directed to Straits Meridian LLP, with copies to Calderwood & Harkness LLP as lead enforcement counsel.
8. SIGNATURE AND DATE
Dated this __ day of __ 2024.
STRAITS MERIDIAN LLP Solicitors for the Judgment Creditor
By: ________
Name: David Teo Wei Lin
Title: Partner
Straits Meridian LLP 1 Raffles Place, #44-01 One Raffles Place Tower 2 Singapore 048616
SCHEDULE — COMPUTATION OF JUDGMENT DEBT
A. Award Amount
B. Costs (85% Allocated to KMH)
C. Sub-Total (Award + Costs)
D. Post-Award Interest
Post-award interest accrues at 5.25% per annum simple on the principal sum of £96,450,000 from 29 June 2024 to the date of this application.
Note: The exact computation of post-award interest will be updated to reflect the actual date of filing of this application. By way of illustration, post-award interest for a period of approximately 100 days (29 June 2024 to approximately 7 October 2024) would amount to approximately £1,387,500 (being £96,450,000 × 5.25% × 100/365).
E. Less: Amounts Recovered in Other Jurisdictions
F. Net Amount Enforceable
G. Amount Sought in this Garnishee Application
The amount sought in this garnishee application is SGD $31,200,000, being the approximate balance believed to be held by the Garnishee (Pinnacle Bank (Singapore) Ltd.) to the credit of accounts in the name of Korinthian Bulkers (Singapore) Pte. Ltd. and/or Korinthian Maritime Holdings Ltd., or so much thereof as is sufficient to satisfy the outstanding judgment debt.
The amount of SGD $31,200,000 is substantially less than the net amount enforceable (approximately £91,267,500, equivalent to approximately SGD $157,000,000 at prevailing exchange rates), and accordingly there is no risk of over-recovery through this application alone.
ANNEXURE
DRAFT GARNISHEE ORDER TO SHOW CAUSE
IN THE HIGH COURT OF THE REPUBLIC OF SINGAPORE GENERAL DIVISION
ORIGINATING SUMMONS NO. 872 OF 2024 SUMMONS NO. __ OF 2024
BETWEEN
THALASSA SHIPPING & LOGISTICS SA ... Judgment Creditor
AND
KORINTHIAN MARITIME HOLDINGS LTD. ... Judgment Debtor
AND
PINNACLE BANK (SINGAPORE) LTD. ... Garnishee
GARNISHEE ORDER TO SHOW CAUSE Made pursuant to Order 49 of the Rules of Court 2021
RECITALS
WHEREAS:
(A) By a final arbitration award dated 28 June 2024 made in LCIA Arbitration Case No. 224718 (the "Award"), a tribunal constituted under the LCIA Arbitration Rules 2020, seated in London, England, and comprised of Sir Malcolm Fenton-Clarke (Presiding Arbitrator), Professor Athena Drakopoulos (Co-Arbitrator), and Dr. Henrik Dalmqvist (Co-Arbitrator), awarded the Judgment Creditor, Thalassa Shipping & Logistics SA, the sum of £96,450,000 in damages and interest, together with costs of £12,150,000, against the Judgment Debtor, Korinthian Maritime Holdings Ltd.
(B) By Order of this Honourable Court dated 6 September 2024 in Originating Summons No. 872 of 2024, the Judgment Creditor was granted leave to enforce the Award in the same manner as a judgment of the High Court, pursuant to Section 19 of the International Arbitration Act (Cap. 143A) and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "Enforcement Order").
(C) The Judgment Debtor has not satisfied the judgment debt, and after crediting amounts recovered in other jurisdictions, there remains outstanding a substantial balance of the judgment debt, inclusive of post-award interest accruing at 5.25% per annum simple from 29 June 2024.
(D) The Garnishee, Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909), is indebted to and/or holds funds on account for Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898), a wholly-owned subsidiary of the Judgment Debtor, in the sum of approximately SGD $31,200,000 or such other sum as stands to the credit of the relevant accounts.
(E) The Judgment Creditor has applied by Summons No. __ of 2024 for a Garnishee Order to Show Cause pursuant to Order 49 of the Rules of Court 2021.
IT IS ORDERED THAT:
1. The Garnishee, Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909), do attend before this Honourable Court on [date to be fixed] at [time to be fixed] and show cause why it should not pay to the Judgment Creditor, Thalassa Shipping & Logistics SA, the sum of SGD $31,200,000 (Singapore Dollars Thirty-One Million Two Hundred Thousand), or such lesser amount as stands to the credit of any and all accounts held in the name of Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898) and/or Korinthian Maritime Holdings Ltd. (28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus) at Pinnacle Bank (Singapore) Ltd., out of the debt due from the Garnishee to the said Korinthian Bulkers (Singapore) Pte. Ltd. and/or Korinthian Maritime Holdings Ltd., or so much thereof as may be sufficient to satisfy the judgment debt, inclusive of post-award interest and costs.
2. Pending the return date fixed in paragraph 1 above, the Garnishee, Pinnacle Bank (Singapore) Ltd., is hereby restrained from making any payment out of, transferring, removing, disposing of, dealing with, diminishing the value of, or otherwise parting with possession of any funds, monies, or credits standing to the credit of any account or accounts (whether current, savings, fixed deposit, or any other form of account) held in the name of:
(a) Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898); and/or
(b) Korinthian Maritime Holdings Ltd. (28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus),
at Pinnacle Bank (Singapore) Ltd., up to the amount of SGD $31,200,000 or such other amount as may stand to the credit of such accounts, without the prior leave of this Honourable Court.
3. A copy of this Order, together with a copy of the application by the Judgment Creditor (Summons No. __ of 2024), the supporting affidavit, and all exhibits thereto, shall be served on:
(a) the Garnishee, Pinnacle Bank (Singapore) Ltd., at 6 Battery Road, #20-01, Singapore 049909;
(b) the Judgment Debtor, Korinthian Maritime Holdings Ltd., at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus, and/or through its solicitors, Harkness Whitford & Co. (SRA No. 614823), 12 Fetter Lane, London EC4A 1JP; and