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IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

Claim No. CL-2024-000487

IN THE MATTER OF the Arbitration Act 1996

AND IN THE MATTER OF an arbitration between

THALASSA SHIPPING & LOGISTICS SA (Claimant / Judgment Creditor)

— and —

KORINTHIAN MARITIME HOLDINGS LTD. (Respondent / Judgment Debtor)

APPLICATION NOTICE FOR AN INTERIM THIRD-PARTY DEBT ORDER PURSUANT TO CPR PART 72

Filed: 5 August 2024

Application under CPR Part 72 — Third Party Debt Orders

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SECTION 1: APPLICATION NOTICE

1.1 Title and Parties

This is the application of the Judgment Creditor for an interim third-party debt order pursuant to CPR Part 72, Rule 72.3. The parties to this application are identified as follows:

Judgment Creditor:

Thalassa Shipping & Logistics SA ("TSL"), a Société Anonyme (SA) organised and existing under the laws of the Hellenic Republic (Greece), with its registered and principal office at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece (Greek Tax Identification Number: EL-801456729). TSL is a substantial international shipping company engaged in the ownership, chartering, and commercial operation of dry bulk and tanker vessels. TSL is the Claimant in LCIA Arbitration Case No. 224718 and the Judgment Creditor in these proceedings.

Judgment Debtor:

Korinthian Maritime Holdings Ltd. ("KMH"), a private limited company incorporated in the Republic of Cyprus under the Companies Law, Cap. 113, bearing Registration Number HE 387421, with its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus. KMH was the Respondent in LCIA Arbitration Case No. 224718 and is the Judgment Debtor in these proceedings. KMH operates as a holding company for a group of shipping entities engaged in the chartering and operation of vessels in the international dry bulk market.

Third Party (Garnishee):

Meridian Trust Bank Ltd. ("Meridian Trust" or the "Third Party"), a bank incorporated in England and Wales and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with its principal place of business and address for service at 50 Lombard Street, London EC3V 9EA, United Kingdom. Meridian Trust is the Third Party within the meaning of CPR Part 72.2 and is believed to hold sums standing to the credit of the Judgment Debtor.

Solicitors for the Judgment Creditor:

Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR (Reference: SE/LO/HB/PG). The Responsible Partner having conduct of this matter is Samuel Eklund, and the Lead Associate is Hannah Brinkley.

1.2 Nature of Application

This is an application by the Judgment Creditor, Thalassa Shipping & Logistics SA, for an interim third-party debt order pursuant to CPR Part 72, Rule 72.3.

By this application, the Judgment Creditor seeks an order that Meridian Trust Bank Ltd. shall not make any payment out of, or otherwise deal with, any debt owed by it to Korinthian Maritime Holdings Ltd. The debt in question comprises specifically, but is not limited to, all sums standing to the credit of any account or accounts held in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd. at Meridian Trust Bank Ltd., whether held in a single account or across multiple accounts, and whether denominated in pounds sterling, United States dollars, euros, or any other currency.

The Judgment Creditor seeks that such sums be frozen and retained by Meridian Trust Bank Ltd. pending a further hearing at which the Court will consider whether to make a final third-party debt order pursuant to CPR 72.7, directing that the sums so held be paid over to the Judgment Creditor in partial or full satisfaction of the judgment debt.

The Judgment Creditor further seeks that Meridian Trust Bank Ltd. be required to provide information as to the nature and amount of any debt owed to the Judgment Debtor, including account numbers, account types, currencies, and balances, so as to enable the Court and the parties to assess the extent of the funds available for the purposes of the final order hearing.

This application is made without notice to the Judgment Debtor and the Third Party, as required by CPR 72.3(1), which provides that the application for an interim third-party debt order must be made without notice. The justification for proceeding on a without-notice basis is further addressed at Section 2.4 below.

1.3 Relief Sought

The Judgment Creditor respectfully seeks the following relief from this Honourable Court:

(1) An interim third-party debt order pursuant to CPR 72.3 requiring Meridian Trust Bank Ltd. to freeze and retain all sums standing to the credit of Korinthian Maritime Holdings Ltd. in any and all accounts maintained at Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA, up to the amount of the judgment debt together with accrued and accruing post-award interest and costs, such that Meridian Trust Bank Ltd. shall not make any payment out of, or otherwise deal with, any such sums pending the determination of the application for a final third-party debt order;

(2) Directions for service of the interim order on both the Judgment Debtor (Korinthian Maritime Holdings Ltd.) and the Third Party (Meridian Trust Bank Ltd.), as set out in the draft order appended hereto;

(3) A date to be fixed for the hearing of the application for a final third-party debt order under CPR 72.7, at which the Court will consider whether to make the interim order final, such hearing to take place not less than 28 days after the date of service of the interim order on both the Third Party and the Judgment Debtor;

(4) An order that Meridian Trust Bank Ltd. provide to the Court and to the Judgment Creditor's solicitors (Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, Ref: SE/LO/HB/PG), within 7 days of service of the interim order, information specifying the amount of any debt owed by it to the Judgment Debtor, including:

(a) whether Meridian Trust Bank Ltd. holds any accounts in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd.;

(b) the account number(s), type(s), and currency(ies) of any such account(s);

(d) whether any other person or persons claim an interest in the funds held in any such account(s), and if so, the nature and basis of such claim;

(5) That all sums so identified be paid over to the Judgment Creditor (or as the Court may direct) pursuant to any final third-party debt order made following the hearing under CPR 72.7; and

(6) The costs of and occasioned by this application.

1.4 Amount of Judgment Debt

The judgment debt in respect of which this application is made arises from the enforcement of LCIA Award No. 224718 dated 28 June 2024 (the "Award"). Permission to enforce the Award as a judgment of the High Court of England and Wales was granted by Mr. Justice Ashworth on 2 August 2024 pursuant to section 66 of the Arbitration Act 1996, in these proceedings (Claim No. CL-2024-000487).

The total amount of the Award, together with costs allocated to the Judgment Debtor by the Tribunal, is as follows:

Total Award Amount: £96,450,000, comprising:

(i) Damages for wrongful early redelivery of M/V Aegean Fortuna (IMO 9784521): £42,300,000. The Tribunal found that KMH redelivered this vessel to TSL approximately 14 months before the expiry of the charter-party period, constituting a repudiatory breach of the time charter-party dated 15 March 2019. The damages were assessed on the basis of the difference between the contractual charter rate and the market rate prevailing at the date of redelivery, applied over the unexpired charter period, together with consequential losses;

(ii) Outstanding hire and damages for M/V Crimson Horizon (IMO 9801334): £28,150,000. The Tribunal found that KMH failed to pay hire due under the time charter-party dated 22 January 2020 from 1 July 2022, accumulating arrears of £4,280,000 before TSL exercised its right to withdraw the vessel on 15 September 2022. The balance of the award comprises damages for wrongful repudiation of the charter-party assessed on the same market differential basis;

(iii) Restitution of fabricated off-hire deductions for M/V Volga Spirit (IMO 9756892): £2,740,000. The Tribunal found that KMH had made off-hire deductions totalling approximately £2,740,000 under the time charter-party dated 10 June 2021 that were without any factual or contractual basis, constituting fabricated claims advanced in bad faith;

(iv) Loss of profit and market differential damages: £16,480,000. The Tribunal assessed additional losses flowing from KMH's breaches, including TSL's lost profit on substitute employment of the vessels and market differential losses arising from the timing of the breaches during a period of significant market disruption; and

(v) Pre-award interest at the rate of 5.25% per annum simple: £6,780,000. The Tribunal awarded simple interest at the rate of 5.25% per annum on the principal sums awarded, calculated from the respective dates on which each component of the damages accrued to the date of the Award.

Costs allocated to KMH (85%): £12,150,000, comprising:

(i) LCIA administrative and tribunal costs (85% of the total): £3,240,000. The Tribunal directed that KMH bear 85% of the costs of the arbitration, including the fees and expenses of the Tribunal and the administrative charges of the LCIA; and

(ii) TSL's legal costs (85% of the total): £8,910,000. The Tribunal directed that KMH bear 85% of TSL's reasonable legal costs incurred in the arbitration, following a detailed assessment of the costs schedules submitted by both parties.

Total Judgment Debt (Award plus Costs): £108,600,000.

In addition, post-award interest is accruing at the rate of 5.25% per annum simple on the unpaid principal sum of £96,450,000 from 29 June 2024 (the day following the date of the Award) until payment, in accordance with the terms of the Award and section 49 of the Arbitration Act 1996. Post-award interest accrues at a daily rate of approximately £13,876.03.

For reference, the USD equivalent of the total judgment debt is approximately USD $120,000,000 at the exchange rate of £1 = USD $1.2441 prevailing on the date of the Award (28 June 2024).

No part of the judgment debt has been satisfied to date. Despite the passage of more than five weeks since the Award was issued, and notwithstanding the order of Mr. Justice Ashworth granting permission to enforce, KMH has made no payment whatsoever in respect of the Award, the costs, or any accruing interest. The Judgment Creditor has received no communication from KMH or its solicitors indicating any intention to satisfy the judgment debt voluntarily.

SECTION 2: GROUNDS OF APPLICATION

2.1 The Underlying Judgment

The judgment debt that forms the basis of this application arises from a final and binding arbitration award issued by a tribunal constituted under the rules of the London Court of International Arbitration ("LCIA") in Case No. 224718, with London as the juridical seat of the arbitration. The arbitration was governed by English law, both as to the substance of the disputes and as to the procedural law of the arbitration.

The Tribunal was constituted as follows:

(a) Sir Malcolm Fenton-Clarke — Presiding Arbitrator, appointed by the LCIA Court pursuant to Article 5.8 of the LCIA Rules (2020). Sir Malcolm is a retired Lord Justice of Appeal and a distinguished practitioner in shipping and commercial law, with over forty years of experience in maritime disputes;

(b) Professor Athena Drakopoulos — Co-Arbitrator, nominated by the Claimant (TSL) pursuant to Article 7 of the LCIA Rules. Professor Drakopoulos holds the Chair of Maritime Law at King's College London and is a Fellow of the Chartered Institute of Arbitrators; and

(c) Dr. Henrik Dalmqvist — Co-Arbitrator, nominated by the Respondent (KMH) pursuant to Article 7 of the LCIA Rules. Dr. Dalmqvist is a former partner of a leading Scandinavian maritime law firm and is recognised internationally for his expertise in charter-party and bills of lading disputes.

Ms. Fiona Beckett served as Tribunal Secretary throughout the proceedings.

The Final Award was issued on 28 June 2024 following a comprehensive arbitral process, including extensive disclosure, witness statements (both factual and expert), and a 10-day evidentiary hearing held at the International Dispute Resolution Centre ("IDRC"), 70 Fleet Street, London EC4Y 1EU, from 11 September to 22 September 2023. The hearing involved the examination of twelve factual witnesses and four expert witnesses (two shipping market experts and two forensic accounting experts). Post-hearing briefs were exchanged in December 2023, and the Tribunal reserved its award.

The disputes that gave rise to the arbitration arose from three separate time charter-party agreements entered into between TSL (as disponent owner or head charterer) and KMH (as charterer or sub-charterer) between 2019 and 2021, each of which contained an LCIA arbitration clause with London as the seat. The three charter-parties related to the following vessels:

(a) M/V *Aegean Fortuna (IMO 9784521) — Time Charter-Party dated 15 March 2019. This was a long-term time charter for a period of approximately 60 months (five years) at a daily hire rate of USD $22,500 (subsequently adjusted). KMH wrongfully redelivered the vessel to TSL approximately 14 months before the contractual redelivery date, on 18 June 2022*, during a period of historically elevated freight rates in the dry bulk market. The Tribunal found that the early redelivery constituted a repudiatory breach of the charter-party and that TSL was entitled to damages assessed on the basis of the difference between the contractual rate and the (then significantly higher) market rate for the unexpired charter period;

(b) M/V *Crimson Horizon (IMO 9801334) — Time Charter-Party dated 22 January 2020. This was a time charter for a period of approximately 36 months at a daily hire rate of USD $18,750 (subsequently adjusted). KMH failed to pay hire due under the charter from 1 July 2022, accumulating arrears of approximately £4,280,000 before TSL exercised its contractual right to withdraw the vessel on 15 September 2022*. The Tribunal found that the failure to pay hire constituted a repudiatory breach entitling TSL to damages for the balance of the charter period; and

(c) M/V *Volga Spirit (IMO 9756892) — Time Charter-Party dated 10 June 2021. This was a time charter for a period of approximately 24 months at a daily hire rate of USD $20,000. KMH made off-hire deductions totalling approximately £2,740,000* under this charter-party that the Tribunal found were entirely without factual or contractual basis. The Tribunal described KMH's off-hire claims as "fabricated" and "advanced in bad faith," noting that the purported off-hire events either did not occur at all or were attributable to KMH's own acts or omissions.

The Tribunal's findings included specific findings of dishonesty and bad faith on the part of KMH's management, particularly in relation to the fabricated off-hire deductions under the M/V Volga Spirit charter. The Tribunal noted that the documentary evidence demonstrated that KMH's off-hire claims had been manufactured by its chartering department at the direction of senior management, and that fabricated survey reports had been submitted in support of the claims.

Permission to enforce the Award as a judgment of the High Court of England and Wales was granted by Mr. Justice Ashworth on 2 August 2024 under section 66 of the Arbitration Act 1996 in these proceedings (Claim No. CL-2024-000487). The order of Mr. Justice Ashworth provides that the Award may be enforced in the same manner as a judgment of the Court, and that judgment may be entered in the terms of the Award. A sealed copy of the order is exhibited as Exhibit HB-1 to the witness statement of Hannah Brinkley.

No application has been made by KMH to challenge or set aside the Award under sections 67, 68, or 69 of the Arbitration Act 1996, and the time for making any such application has now expired.

2.2 Worldwide Freezing Order

In light of the substantial judgment debt and the Judgment Creditor's well-founded concerns regarding the dissipation of KMH's assets, the Judgment Creditor applied to this Court for freezing relief.

A Worldwide Freezing Order ("WFO") was granted by Mr. Justice Ashworth without notice on 16 July 2024, restraining KMH from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets, whether located within the jurisdiction or elsewhere, up to the value of £108,600,000. The WFO was granted on the basis that there was a good arguable case (the Award having been issued and being plainly enforceable) and that there was a real risk that KMH would dissipate its assets so as to render any judgment unenforceable.

The WFO was continued with modifications on the return date of 30 July 2024, following a contested inter partes hearing at which KMH was represented by Harkness Whitford & Co. At the return date hearing, Mr. Justice Ashworth was satisfied that the grounds for the WFO remained established and that the evidence of dissipation risk had, if anything, strengthened in the intervening period. The modifications made at the return date included certain clarifications to the scope of the ordinary living expenses and ordinary course of business exceptions, but the core prohibitions of the WFO were maintained in full.

The WFO includes ancillary disclosure provisions requiring KMH to disclose, by way of affidavit sworn within 14 days of the date of the original order, all of its assets worldwide exceeding £25,000 in value, identifying them by category, location, value, and the name and address of the person holding or controlling each asset. The disclosure was required to include, without limitation, details of all bank accounts, securities, vessels, real property, receivables, intercompany loans, and interests in corporate entities.

KMH's compliance with its disclosure obligations has been, in the Judgment Creditor's respectful submission, incomplete and evasive. KMH provided a disclosure affidavit that the Judgment Creditor considers to be materially deficient in several respects, as detailed in the witness statement of Hannah Brinkley. Notwithstanding these deficiencies, information obtained through the WFO disclosure process, together with the independent asset tracing work conducted by Hartwell Pemberton LLP (forensic accountants engaged by Calderwood & Harkness LLP on behalf of TSL), has identified accounts maintained by KMH at Meridian Trust Bank Ltd. in London.

The identification of these accounts provides the factual basis for the present application.

2.3 Debt Owed by Meridian Trust Bank Ltd. to KMH

The information available to the Judgment Creditor indicates that Korinthian Maritime Holdings Ltd. maintains one or more accounts at Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA. Meridian Trust Bank Ltd. is understood to serve as KMH's primary London correspondent bank, through which KMH conducts its sterling and US dollar banking operations in the United Kingdom, including the receipt of charter hire payments, the servicing of vessel-related obligations, and the movement of funds between its various group entities.

As a matter of law, the sums standing to the credit of such account(s) constitute a debt owed by Meridian Trust Bank Ltd. (as banker) to KMH (as account holder) within the well-established principle that the relationship between banker and customer is one of debtor and creditor: see Foley v Hill [1848] 2 HLC 28. This debt falls squarely within the definition of a debt amenable to a third-party debt order under CPR 72.2, which applies to any debt due or accruing due from the third party to the judgment debtor.

The details of the accounts and sums held, to the extent currently known to the Judgment Creditor, are set out in the witness statement of Hannah Brinkley, Lead Associate at Calderwood & Harkness LLP, dated 5 August 2024, which accompanies this application. Ms. Brinkley's evidence addresses the basis upon which the Judgment Creditor believes that KMH maintains accounts at Meridian Trust Bank Ltd. and that significant sums stand to KMH's credit in those accounts.

The information underpinning the application was obtained through two principal sources:

(a) KMH's disclosure pursuant to the ancillary disclosure provisions of the Worldwide Freezing Order, in which KMH identified (among other banking relationships) accounts held at Meridian Trust Bank Ltd., although the Judgment Creditor believes that the disclosure provided by KMH is incomplete; and

(b) The asset tracing conducted by Hartwell Pemberton LLP, a specialist forensic accounting and investigative services firm. The asset tracing work was led by Rebecca Saunders (Partner, Forensic & Investigative Services) and Mark Huxley (Director), and involved analysis of publicly available information, corporate registry filings, shipping databases, and other open-source intelligence regarding KMH's corporate structure, banking relationships, and asset holdings. Hartwell Pemberton LLP's preliminary asset tracing report dated 15 August 2024 identified KMH's banking relationships, including at Meridian Trust Bank Ltd., and assessed the likely magnitude of funds held at that institution. The relevant extracts from that report are exhibited as Exhibit HB-4 to Ms. Brinkley's witness statement.

The Judgment Creditor believes, on the basis of the information available, that significant sums are presently standing to KMH's credit at Meridian Trust Bank Ltd., although the precise quantum will only be ascertainable once Meridian Trust Bank Ltd. provides the information required by the interim order sought.

2.4 Justification for Without-Notice Application

This application is made without notice to the Judgment Debtor and the Third Party pursuant to CPR 72.3(1), which provides in mandatory terms that an application for an interim third-party debt order "must be made without notice." The procedure established by CPR Part 72 reflects a deliberate legislative choice that the initial interim order should be made ex parte, so as to prevent the judgment debtor from dissipating or removing the funds before the order takes effect. The safeguards for the judgment debtor and the third party are built into the subsequent stages of the procedure: the interim order must be served on both the judgment debtor and the third party, and a further hearing must be fixed at which the court considers whether to make the order final, at which hearing both the judgment debtor and the third party have the right to be heard and to raise objections.

In the present case, even beyond the mandatory requirement of CPR 72.3(1), there is compelling justification for proceeding without notice, given the serious and demonstrated risk of dissipation of assets by KMH. The evidence before the Court in connection with the Worldwide Freezing Order, and the further evidence obtained since the grant of that order, discloses the following pattern of conduct by KMH and its beneficial owners:

(a) Post-award asset transfers. Following the issuance of the Award on 28 June 2024, KMH engaged in a series of transactions designed to disperse its assets internationally through a network of related entities. These entities include Korinthian Bulkers (Singapore) Pte. Ltd. (a Singapore-incorporated subsidiary), Dnepr Shipholding Inc. (a British Virgin Islands company, BVI Company No. 2014876), Korinthian DMCC (a company registered in the Dubai Multi Commodities Centre), and Oceangate Ventures Ltd. (a Cypriot company, Registration No. HE 401293). The transfers included the movement of substantial funds from KMH's accounts to these entities, apparently without commercial justification;

(b) Attempted sale of M/V *Crimson Horizon*. In the period immediately following the Award, KMH took steps to dispose of the M/V Crimson Horizon, one of the three vessels that were the subject of the arbitration. The attempted sale was halted only by the intervention of the Worldwide Freezing Order. This conduct is significant because the M/V Crimson Horizon represents one of KMH's most valuable identifiable assets;

(c) Complex ownership and holding structures. KMH is beneficially owned by the Volkov family, specifically by Andrei Volkov (who is the ultimate beneficial owner ("UBO") and de facto director of KMH, although he does not appear on the Cypriot corporate register as a de jure director) and Sergei Volkov (who is a registered Director of KMH). The Volkov family controls KMH through multiple layers of BVI and Cypriot holding structures, which Hartwell Pemberton LLP's investigations have shown to be designed to facilitate the movement and concealment of assets rather than serving any legitimate commercial purpose; and

(d) Evidence of planned further transfers. The urgency of this application is further underscored by evidence identified by Hartwell Pemberton LLP of planned transfers from KMH's accounts, including accounts held at Meridian Trust Bank Ltd. This evidence, which is described in the witness statement of Hannah Brinkley and in the relevant extracts from the Hartwell Pemberton LLP report, indicates that KMH may be taking or planning to take steps to move funds out of its Meridian Trust Bank Ltd. accounts, potentially in breach of the existing Worldwide Freezing Order.

In these circumstances, the Judgment Creditor submits that there is a real and imminent risk that, if the application were made on notice, the Judgment Debtor would take steps to remove or dissipate the funds held at Meridian Trust Bank Ltd. before the interim order could take effect. The without-notice procedure mandated by CPR 72.3(1) is therefore both procedurally required and substantively justified.

The Judgment Creditor confirms that it has complied with its duty of full and frank disclosure in making this without-notice application. All material facts known to the Judgment Creditor have been disclosed, including matters that are or might be adverse to the application.

2.5 Satisfaction of CPR Part 72 Requirements

The Judgment Creditor submits that all of the requirements for the grant of an interim third-party debt order under CPR Part 72 are satisfied in the present case:

(a) Enforceable judgment. The Judgment Creditor has an enforceable judgment within the meaning of CPR 72.2(a). The LCIA Award dated 28 June 2024 has been granted permission to enforce as a judgment of this Court under section 66 of the Arbitration Act 1996 by the order of Mr. Justice Ashworth dated 2 August 2024. By virtue of that order, the Award has the same force and effect as a judgment of the High Court, and may be enforced accordingly. There is no outstanding challenge to the Award, and the time for any such challenge has expired;

(b) Unsatisfied judgment debt. The judgment debt has not been satisfied in whole or in part. Despite the passage of more than five weeks since the date of the Award and three days since the grant of permission to enforce, KMH has made no payment whatsoever. No communication has been received from KMH or its solicitors indicating any intention or ability to satisfy the judgment;

(c) Third party within the jurisdiction. The Third Party, Meridian Trust Bank Ltd., is a bank incorporated in England and Wales and carrying on business within the jurisdiction. It has its principal office at 50 Lombard Street, London EC3V 9EA. The Third Party is therefore clearly within the jurisdiction of this Court for the purposes of CPR Part 72;

(d) Debt due or accruing due. The debt owed by the Third Party to the Judgment Debtor — being the sums standing to the credit of KMH's account(s) at Meridian Trust Bank Ltd. — is a present debt, due and accruing due to KMH. It is well established that a credit balance on a bank account constitutes a debt owed by the bank to the customer that is amenable to a third-party debt order: see Foley v Hill [1848] 2 HLC 28; Rogers v Whiteley [1892] AC 118; Société Eram Shipping Co Ltd v Cie Internationale de Navigation [2003] UKHL 30, [2004] 1 AC 260 at [26]. The debt is presently due and payable on demand and is therefore within the scope of CPR 72.2; and

(e) Supporting evidence. The application is supported by the witness statement of Hannah Brinkley dated 5 August 2024, which provides the evidence required by CPR 72.3, including evidence of the judgment debt, the identity of the Third Party, the existence of the debt owed by the Third Party to the Judgment Debtor, and the grounds for the application.

The Judgment Creditor therefore respectfully invites the Court to make an interim third-party debt order in the terms of the draft order appended to this application.

SECTION 3: EVIDENCE IN SUPPORT

3.1 Witness Statement of Hannah Brinkley

This application is supported by the first witness statement of Hannah Brinkley, Lead Associate in the International Disputes and Enforcement Group at Calderwood & Harkness LLP, solicitors for the Judgment Creditor. Ms. Brinkley's witness statement is dated 5 August 2024 and is verified by a statement of truth in accordance with CPR Part 32.

Ms. Brinkley has had day-to-day conduct of this matter on behalf of TSL since the commencement of enforcement proceedings and has personal knowledge of the facts and matters deposed to in her statement, or has set out the source and basis of her knowledge where information has been obtained from other persons or from documents.

Ms. Brinkley's witness statement addresses the following matters in detail:

(a) Background of the charter-party dispute and the LCIA arbitration. Ms. Brinkley provides a narrative account of the commercial relationship between TSL and KMH, the three charter-party agreements, the disputes that arose, the commencement and conduct of the LCIA arbitration (Case No. 224718), and the key findings of the Tribunal;

(b) The Final Award dated 28 June 2024. Ms. Brinkley exhibits a certified copy of the Award and summarises its principal terms, including the total sum awarded (£96,450,000), the breakdown of damages and interest, the allocation of costs (85% to KMH, totalling £12,150,000), and the provisions for post-award interest;

(c) The order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce the Award under section 66 of the Arbitration Act 1996. Ms. Brinkley exhibits the sealed order and describes the circumstances in which it was obtained;

(d) The Worldwide Freezing Order granted 16 July 2024 and continued 30 July 2024. Ms. Brinkley exhibits the sealed WFO and describes its terms, the return date hearing, the disclosure obligations imposed on KMH, and the extent of KMH's compliance (or non-compliance) with those obligations;

(e) Information obtained regarding KMH's accounts at Meridian Trust Bank Ltd. Ms. Brinkley sets out in detail the basis for the Judgment Creditor's belief that sums are standing to KMH's credit at Meridian Trust Bank Ltd. She describes the information obtained from KMH's disclosure and from the independent investigations conducted by Hartwell Pemberton LLP, and explains the significance of the accounts identified. She confirms that Meridian Trust Bank Ltd. is understood to be KMH's primary London correspondent bank;

(f) The urgency of the application. Ms. Brinkley addresses the evidence of planned transfers from KMH's accounts, including at Meridian Trust Bank Ltd., and KMH's pattern of asset dissipation and evasion in the post-award period. She identifies specific transactions and steps taken by KMH that demonstrate the risk that funds held at Meridian Trust Bank Ltd. may be removed or dissipated if the application is not dealt with urgently; and

(g) Reference to the asset tracing findings of Hartwell Pemberton LLP. Ms. Brinkley refers to and exhibits relevant extracts from the preliminary asset tracing report prepared by Hartwell Pemberton LLP, led by Rebecca Saunders (Partner, Forensic & Investigative Services) and Mark Huxley (Director). The report identifies KMH's corporate structure, its network of related entities, its banking relationships (including at Meridian Trust Bank Ltd.), and the movement of funds through the group in the post-award period.

3.2 Exhibits

The following exhibits are appended to and accompany the witness statement of Hannah Brinkley:

Exhibit HB-1: Sealed order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment of the High Court of England and Wales pursuant to section 66 of the Arbitration Act 1996;

Exhibit HB-2: Certified copy of LCIA Award No. 224718 dated 28 June 2024, as issued by the Tribunal comprising Sir Malcolm Fenton-Clarke (Presiding Arbitrator), Professor Athena Drakopoulos (Co-Arbitrator), and Dr. Henrik Dalmqvist (Co-Arbitrator);

Exhibit HB-3: Sealed Worldwide Freezing Order dated 16 July 2024, as continued with modifications on the return date of 30 July 2024, together with the endorsed order from the return date hearing;

Exhibit HB-4: Relevant extracts from Hartwell Pemberton LLP's preliminary asset tracing report dated 15 August 2024, identifying KMH's banking relationships, including accounts maintained at Meridian Trust Bank Ltd., and describing the movement of funds through KMH's corporate group in the post-award period; and

Exhibit HB-5: Copies of the three charter-party agreements that gave rise to the disputes and the arbitration:

(i) Time Charter-Party for M/V Aegean Fortuna, dated 15 March 2019, between Thalassa Shipping & Logistics SA and Korinthian Maritime Holdings Ltd.;

(ii) Time Charter-Party for M/V Crimson Horizon, dated 22 January 2020, between Thalassa Shipping & Logistics SA and Korinthian Maritime Holdings Ltd.; and

(iii) Time Charter-Party for M/V Volga Spirit, dated 10 June 2021, between Thalassa Shipping & Logistics SA and Korinthian Maritime Holdings Ltd.,

each of which contains an LCIA arbitration clause designating London as the seat of arbitration and English law as the governing law.

SECTION 4: DRAFT INTERIM THIRD-PARTY DEBT ORDER

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

Claim No. CL-2024-000487

IN THE MATTER OF the Arbitration Act 1996

AND IN THE MATTER OF an arbitration between

THALASSA SHIPPING & LOGISTICS SA (Claimant / Judgment Creditor)

— and —

KORINTHIAN MARITIME HOLDINGS LTD. (Respondent / Judgment Debtor)

INTERIM THIRD-PARTY DEBT ORDER

(Made pursuant to CPR Part 72, Rule 72.3)

[Date to be inserted by the Court]

4.1 Preamble

Upon the application of the Judgment Creditor, Thalassa Shipping & Logistics SA, by application notice filed on 5 August 2024;

And upon reading the said application notice and the first witness statement of Hannah Brinkley, Lead Associate at Calderwood & Harkness LLP, dated 5 August 2024, together with Exhibits HB-1 to HB-5 thereto;

And this application having been considered without a hearing pursuant to CPR 72.3;

And the Court being satisfied that:

(a) the Judgment Creditor has an enforceable judgment against the Judgment Debtor in the sum of £108,600,000 (comprising the Award of £96,450,000 and costs of £12,150,000), together with post-award interest accruing on the principal sum, by virtue of the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment under section 66 of the Arbitration Act 1996;

(b) the judgment debt has not been satisfied in whole or in part;

(d) there is reason to believe that the Third Party owes a debt to the Judgment Debtor, being sums standing to the credit of the Judgment Debtor's account(s) at Meridian Trust Bank Ltd.; and

(e) it is just and convenient to make an interim order;

IT IS ORDERED THAT:

4.2 Operative Provisions

1. Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA (the "Third Party"), must not make any payment out of, or otherwise deal with or dispose of, any debt owed by it to the Judgment Debtor, Korinthian Maritime Holdings Ltd. (Cyprus Registration No. HE 387421), including without limitation all sums standing to the credit of any and all accounts held in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd. at Meridian Trust Bank Ltd., whether such accounts are denominated in pounds sterling, United States dollars, euros, or any other currency, and whether such accounts are current accounts, deposit accounts, savings accounts, money market accounts, or accounts of any other description.

2. The amount restrained pursuant to paragraph 1 of this order shall not exceed £108,600,000 (one hundred and eight million six hundred thousand pounds sterling), being the total of the Award of £96,450,000 (ninety-six million four hundred and fifty thousand pounds sterling) and costs of £12,150,000 (twelve million one hundred and fifty thousand pounds sterling), together with:

(a) post-award interest accruing at the rate of 5.25% per annum simple from 29 June 2024 on the sum of £96,450,000 until payment or further order; and

(b) the costs of this application, to be assessed if not agreed.

3. Meridian Trust Bank Ltd. shall, within 7 days of service of this order upon it, provide to the Court and to the Judgment Creditor's solicitors (Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, Reference: SE/LO/HB/PG) written confirmation of the following:

(a) whether Meridian Trust Bank Ltd. holds any accounts in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd.;

(b) the account number(s), type(s), and currency(ies) of any such account(s);

(d) whether any other person or persons claim an interest in the funds held in any such account(s), and if so, the identity of such person(s) and the nature and basis of their claimed interest.

4. Korinthian Maritime Holdings Ltd. (the "Judgment Debtor") must not take any step to instruct, request, authorise, or cause Meridian Trust Bank Ltd. to transfer, remove, pay away, or otherwise deal with any sums held in any account or accounts in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd. at Meridian Trust Bank Ltd.

4.3 Directions for Service

5. This interim order, together with the application notice dated 5 August 2024 and the first witness statement of Hannah Brinkley dated 5 August 2024 (and Exhibits HB-1 to HB-5 thereto), shall be served on:

(a) Meridian Trust Bank Ltd. at 50 Lombard Street, London EC3V 9EA, marked for the attention of the Legal / Compliance Department; and

(b) Korinthian Maritime Holdings Ltd. at its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus, and also care of its solicitors on the record in these proceedings, Harkness Whitford & Co. (SRA No. 614823), 12 Fetter Lane, London EC4A 1JP.

6. Service shall be effected within 7 days of the date of this order. Service on Harkness Whitford & Co. shall constitute good service on the Judgment Debtor for the purposes of this order.

4.4 Directions for Final Order Hearing

7. A hearing shall be fixed for the consideration of a final third-party debt order under CPR 72.7, such hearing to take place not less than 28 days after the date of service of this interim order on both the Third Party and the Judgment Debtor (or the last of them to be served, if they are served on different dates).

8. At that hearing, the Court will consider whether to make a final third-party debt order requiring Meridian Trust Bank Ltd. to pay over to the Judgment Creditor (or as the Court may direct) all sums standing to the credit of the Judgment Debtor's account(s) at Meridian Trust Bank Ltd., up to the total amount of the judgment debt together with accrued post-award interest and costs.

9. Any objection by Meridian Trust Bank Ltd. or by Korinthian Maritime Holdings Ltd. to the making of a final third-party debt order must be filed with the Court and served on all other parties not less than 3 days before the date fixed for the hearing, and must be accompanied by written evidence setting out the grounds of the objection.

4.5 Costs

10. The costs of and occasioned by this application are reserved to the hearing of the application for a final third-party debt order.

4.6 Liberty to Apply

11. There is liberty to the Judgment Creditor, the Judgment Debtor, or Meridian Trust Bank Ltd. to apply to vary or discharge this order on not less than 48 hours' written notice to the other parties, such notice to be given to the solicitors for the Judgment Creditor (Calderwood & Harkness LLP) and the solicitors for the Judgment Debtor (Harkness Whitford & Co.) at the addresses set out in Section 6 below, and to Meridian Trust Bank Ltd. at its address for service set out in paragraph 5(a) above.

SECTION 5: STATEMENT OF TRUTH

I, Samuel Eklund, Responsible Partner at Calderwood & Harkness LLP, solicitors for the Judgment Creditor, Thalassa Shipping & Logistics SA, confirm that I am duly authorised by the Judgment Creditor to make this statement on its behalf.

I believe that the facts stated in this application notice are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.

The Judgment Creditor, Thalassa Shipping & Logistics SA, believes that the facts stated in this application notice are true. The Judgment Creditor understands that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.

Signed: ________

Samuel Eklund Responsible Partner Calderwood & Harkness LLP 45 Moorgate, London EC2R 6AR

Date: 5 August 2024

The Judgment Creditor's solicitors, Calderwood & Harkness LLP, confirm that they are authorised to sign this statement of truth on behalf of the Judgment Creditor pursuant to CPR Part 22, Practice Direction 22, paragraph 3.7.

SECTION 6: SERVICE DETAILS AND CORRESPONDENCE ADDRESS

6.1 Judgment Creditor's Solicitors

Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR

Reference: SE/LO/HB/PG

Responsible Partner: Samuel Eklund Lead Associate: Hannah Brinkley

Telephone: +44 (0)20 7946 0123

Email: samuel.eklund@calderwoodharkness.com / hannah.brinkley@calderwoodharkness.com

DX: DX 527 London/City

All documents for service on the Judgment Creditor in these proceedings should be served at the above address, marked for the attention of Hannah Brinkley, Reference SE/LO/HB/PG.

6.2 Judgment Debtor's Solicitors (for service)

Harkness Whitford & Co. 12 Fetter Lane London EC4A 1JP

SRA Registration No.: 614823

Reference: RH/CW/JT (Richard Harkness / Catherine Whitford / James Thornbury)

Telephone: +44 (0)20 7822 4500 DX: DX 412 London/Chancery Lane

Harkness Whitford & Co. are the solicitors on the record for the Judgment Debtor, Korinthian Maritime Holdings Ltd., in these proceedings and have accepted service of process on behalf of KMH. Service of this interim order and the accompanying documents on Harkness Whitford & Co. at the above address shall constitute good service on the Judgment Debtor.

6.3 Third Party Bank Address (for service)

Meridian Trust Bank Ltd. 50 Lombard Street London EC3V 9EA

Attention: Legal / Compliance Department

Service of this interim order and the accompanying documents on Meridian Trust Bank Ltd. shall be effected at the above address, marked for the attention of the Legal / Compliance Department.

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)
Claim No. CL-2024-000487
IN THE MATTER OF the Arbitration Act 1996
AND IN THE MATTER OF an arbitration between
THALASSA SHIPPING & LOGISTICS SA (Claimant / Judgment Creditor)
— and —
KORINTHIAN MARITIME HOLDINGS LTD. (Respondent / Judgment Debtor)
APPLICATION NOTICE FOR AN INTERIM THIRD-PARTY DEBT ORDER PURSUANT TO CPR PART 72
Filed: 5 August 2024
Application under CPR Part 72 — Third Party Debt Orders
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SECTION 1: APPLICATION NOTICE
1.1 Title and Parties
This is the application of the Judgment Creditor for an interim third-party debt order pursuant to CPR Part 72, Rule 72.3. The parties to this application are identified as follows:
Judgment Creditor:
Thalassa Shipping & Logistics SA ("TSL"), a Société Anonyme (SA) organised and existing under the laws of the Hellenic Republic (Greece), with its registered and principal office at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece (Greek Tax Identification Number: EL-801456729). TSL is a substantial international shipping company engaged in the ownership, chartering, and commercial operation of dry bulk and tanker vessels. TSL is the Claimant in LCIA Arbitration Case No. 224718 and the Judgment Creditor in these proceedings.
Judgment Debtor:
Korinthian Maritime Holdings Ltd. ("KMH"), a private limited company incorporated in the Republic of Cyprus under the Companies Law, Cap. 113, bearing Registration Number HE 387421, with its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus. KMH was the Respondent in LCIA Arbitration Case No. 224718 and is the Judgment Debtor in these proceedings. KMH operates as a holding company for a group of shipping entities engaged in the chartering and operation of vessels in the international dry bulk market.
Third Party (Garnishee):
Meridian Trust Bank Ltd. ("Meridian Trust" or the "Third Party"), a bank incorporated in England and Wales and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with its principal place of business and address for service at 50 Lombard Street, London EC3V 9EA, United Kingdom. Meridian Trust is the Third Party within the meaning of CPR Part 72.2 and is believed to hold sums standing to the credit of the Judgment Debtor.
Solicitors for the Judgment Creditor:
Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR (Reference: SE/LO/HB/PG). The Responsible Partner having conduct of this matter is Samuel Eklund, and the Lead Associate is Hannah Brinkley.
1.2 Nature of Application
This is an application by the Judgment Creditor, Thalassa Shipping & Logistics SA, for an interim third-party debt order pursuant to CPR Part 72, Rule 72.3.
By this application, the Judgment Creditor seeks an order that Meridian Trust Bank Ltd. shall not make any payment out of, or otherwise deal with, any debt owed by it to Korinthian Maritime Holdings Ltd. The debt in question comprises specifically, but is not limited to, all sums standing to the credit of any account or accounts held in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd. at Meridian Trust Bank Ltd., whether held in a single account or across multiple accounts, and whether denominated in pounds sterling, United States dollars, euros, or any other currency.
The Judgment Creditor seeks that such sums be frozen and retained by Meridian Trust Bank Ltd. pending a further hearing at which the Court will consider whether to make a final third-party debt order pursuant to CPR 72.7, directing that the sums so held be paid over to the Judgment Creditor in partial or full satisfaction of the judgment debt.
The Judgment Creditor further seeks that Meridian Trust Bank Ltd. be required to provide information as to the nature and amount of any debt owed to the Judgment Debtor, including account numbers, account types, currencies, and balances, so as to enable the Court and the parties to assess the extent of the funds available for the purposes of the final order hearing.
This application is made without notice to the Judgment Debtor and the Third Party, as required by CPR 72.3(1), which provides that the application for an interim third-party debt order must be made without notice. The justification for proceeding on a without-notice basis is further addressed at Section 2.4 below.
1.3 Relief Sought
The Judgment Creditor respectfully seeks the following relief from this Honourable Court:
(1) An interim third-party debt order pursuant to CPR 72.3 requiring Meridian Trust Bank Ltd. to freeze and retain all sums standing to the credit of Korinthian Maritime Holdings Ltd. in any and all accounts maintained at Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA, up to the amount of the judgment debt together with accrued and accruing post-award interest and costs, such that Meridian Trust Bank Ltd. shall not make any payment out of, or otherwise deal with, any such sums pending the determination of the application for a final third-party debt order;
(2) Directions for service of the interim order on both the Judgment Debtor (Korinthian Maritime Holdings Ltd.) and the Third Party (Meridian Trust Bank Ltd.), as set out in the draft order appended hereto;
(3) A date to be fixed for the hearing of the application for a final third-party debt order under CPR 72.7, at which the Court will consider whether to make the interim order final, such hearing to take place not less than 28 days after the date of service of the interim order on both the Third Party and the Judgment Debtor;
(4) An order that Meridian Trust Bank Ltd. provide to the Court and to the Judgment Creditor's solicitors (Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, Ref: SE/LO/HB/PG), within 7 days of service of the interim order, information specifying the amount of any debt owed by it to the Judgment Debtor, including:
(a) whether Meridian Trust Bank Ltd. holds any accounts in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd.;
(b) the account number(s), type(s), and currency(ies) of any such account(s);
(c) the balance standing to the credit of each such account as at the date of service of this order; and
(d) whether any other person or persons claim an interest in the funds held in any such account(s), and if so, the nature and basis of such claim;
(5) That all sums so identified be paid over to the Judgment Creditor (or as the Court may direct) pursuant to any final third-party debt order made following the hearing under CPR 72.7; and
(6) The costs of and occasioned by this application.
1.4 Amount of Judgment Debt
The judgment debt in respect of which this application is made arises from the enforcement of LCIA Award No. 224718 dated 28 June 2024 (the "Award"). Permission to enforce the Award as a judgment of the High Court of England and Wales was granted by Mr. Justice Ashworth on 2 August 2024 pursuant to section 66 of the Arbitration Act 1996, in these proceedings (Claim No. CL-2024-000487).
The total amount of the Award, together with costs allocated to the Judgment Debtor by the Tribunal, is as follows:
Total Award Amount: £96,450,000, comprising:
(i) Damages for wrongful early redelivery of M/V Aegean Fortuna (IMO 9784521): £42,300,000. The Tribunal found that KMH redelivered this vessel to TSL approximately 14 months before the expiry of the charter-party period, constituting a repudiatory breach of the time charter-party dated 15 March 2019. The damages were assessed on the basis of the difference between the contractual charter rate and the market rate prevailing at the date of redelivery, applied over the unexpired charter period, together with consequential losses;
(ii) Outstanding hire and damages for M/V Crimson Horizon (IMO 9801334): £28,150,000. The Tribunal found that KMH failed to pay hire due under the time charter-party dated 22 January 2020 from 1 July 2022, accumulating arrears of £4,280,000 before TSL exercised its right to withdraw the vessel on 15 September 2022. The balance of the award comprises damages for wrongful repudiation of the charter-party assessed on the same market differential basis;
(iii) Restitution of fabricated off-hire deductions for M/V Volga Spirit (IMO 9756892): £2,740,000. The Tribunal found that KMH had made off-hire deductions totalling approximately £2,740,000 under the time charter-party dated 10 June 2021 that were without any factual or contractual basis, constituting fabricated claims advanced in bad faith;
(iv) Loss of profit and market differential damages: £16,480,000. The Tribunal assessed additional losses flowing from KMH's breaches, including TSL's lost profit on substitute employment of the vessels and market differential losses arising from the timing of the breaches during a period of significant market disruption; and
(v) Pre-award interest at the rate of 5.25% per annum simple: £6,780,000. The Tribunal awarded simple interest at the rate of 5.25% per annum on the principal sums awarded, calculated from the respective dates on which each component of the damages accrued to the date of the Award.
Costs allocated to KMH (85%): £12,150,000, comprising:
(i) LCIA administrative and tribunal costs (85% of the total): £3,240,000. The Tribunal directed that KMH bear 85% of the costs of the arbitration, including the fees and expenses of the Tribunal and the administrative charges of the LCIA; and
(ii) TSL's legal costs (85% of the total): £8,910,000. The Tribunal directed that KMH bear 85% of TSL's reasonable legal costs incurred in the arbitration, following a detailed assessment of the costs schedules submitted by both parties.
Total Judgment Debt (Award plus Costs): £108,600,000.
In addition, post-award interest is accruing at the rate of 5.25% per annum simple on the unpaid principal sum of £96,450,000 from 29 June 2024 (the day following the date of the Award) until payment, in accordance with the terms of the Award and section 49 of the Arbitration Act 1996. Post-award interest accrues at a daily rate of approximately £13,876.03.
For reference, the USD equivalent of the total judgment debt is approximately USD $120,000,000 at the exchange rate of £1 = USD $1.2441 prevailing on the date of the Award (28 June 2024).
No part of the judgment debt has been satisfied to date. Despite the passage of more than five weeks since the Award was issued, and notwithstanding the order of Mr. Justice Ashworth granting permission to enforce, KMH has made no payment whatsoever in respect of the Award, the costs, or any accruing interest. The Judgment Creditor has received no communication from KMH or its solicitors indicating any intention to satisfy the judgment debt voluntarily.
SECTION 2: GROUNDS OF APPLICATION
2.1 The Underlying Judgment
The judgment debt that forms the basis of this application arises from a final and binding arbitration award issued by a tribunal constituted under the rules of the London Court of International Arbitration ("LCIA") in Case No. 224718, with London as the juridical seat of the arbitration. The arbitration was governed by English law, both as to the substance of the disputes and as to the procedural law of the arbitration.
The Tribunal was constituted as follows:
(a) Sir Malcolm Fenton-Clarke — Presiding Arbitrator, appointed by the LCIA Court pursuant to Article 5.8 of the LCIA Rules (2020). Sir Malcolm is a retired Lord Justice of Appeal and a distinguished practitioner in shipping and commercial law, with over forty years of experience in maritime disputes;
(b) Professor Athena Drakopoulos — Co-Arbitrator, nominated by the Claimant (TSL) pursuant to Article 7 of the LCIA Rules. Professor Drakopoulos holds the Chair of Maritime Law at King's College London and is a Fellow of the Chartered Institute of Arbitrators; and
(c) Dr. Henrik Dalmqvist — Co-Arbitrator, nominated by the Respondent (KMH) pursuant to Article 7 of the LCIA Rules. Dr. Dalmqvist is a former partner of a leading Scandinavian maritime law firm and is recognised internationally for his expertise in charter-party and bills of lading disputes.
Ms. Fiona Beckett served as Tribunal Secretary throughout the proceedings.
The Final Award was issued on 28 June 2024 following a comprehensive arbitral process, including extensive disclosure, witness statements (both factual and expert), and a 10-day evidentiary hearing held at the International Dispute Resolution Centre ("IDRC"), 70 Fleet Street, London EC4Y 1EU, from 11 September to 22 September 2023. The hearing involved the examination of twelve factual witnesses and four expert witnesses (two shipping market experts and two forensic accounting experts). Post-hearing briefs were exchanged in December 2023, and the Tribunal reserved its award.
The disputes that gave rise to the arbitration arose from three separate time charter-party agreements entered into between TSL (as disponent owner or head charterer) and KMH (as charterer or sub-charterer) between 2019 and 2021, each of which contained an LCIA arbitration clause with London as the seat. The three charter-parties related to the following vessels:
(a) M/V *Aegean Fortuna (IMO 9784521) — Time Charter-Party dated 15 March 2019. This was a long-term time charter for a period of approximately 60 months (five years) at a daily hire rate of USD $22,500 (subsequently adjusted). KMH wrongfully redelivered the vessel to TSL approximately 14 months before the contractual redelivery date, on 18 June 2022*, during a period of historically elevated freight rates in the dry bulk market. The Tribunal found that the early redelivery constituted a repudiatory breach of the charter-party and that TSL was entitled to damages assessed on the basis of the difference between the contractual rate and the (then significantly higher) market rate for the unexpired charter period;
(b) M/V *Crimson Horizon (IMO 9801334) — Time Charter-Party dated 22 January 2020. This was a time charter for a period of approximately 36 months at a daily hire rate of USD $18,750 (subsequently adjusted). KMH failed to pay hire due under the charter from 1 July 2022, accumulating arrears of approximately £4,280,000 before TSL exercised its contractual right to withdraw the vessel on 15 September 2022*. The Tribunal found that the failure to pay hire constituted a repudiatory breach entitling TSL to damages for the balance of the charter period; and
(c) M/V *Volga Spirit (IMO 9756892) — Time Charter-Party dated 10 June 2021. This was a time charter for a period of approximately 24 months at a daily hire rate of USD $20,000. KMH made off-hire deductions totalling approximately £2,740,000* under this charter-party that the Tribunal found were entirely without factual or contractual basis. The Tribunal described KMH's off-hire claims as "fabricated" and "advanced in bad faith," noting that the purported off-hire events either did not occur at all or were attributable to KMH's own acts or omissions.
The Tribunal's findings included specific findings of dishonesty and bad faith on the part of KMH's management, particularly in relation to the fabricated off-hire deductions under the M/V Volga Spirit charter. The Tribunal noted that the documentary evidence demonstrated that KMH's off-hire claims had been manufactured by its chartering department at the direction of senior management, and that fabricated survey reports had been submitted in support of the claims.
Permission to enforce the Award as a judgment of the High Court of England and Wales was granted by Mr. Justice Ashworth on 2 August 2024 under section 66 of the Arbitration Act 1996 in these proceedings (Claim No. CL-2024-000487). The order of Mr. Justice Ashworth provides that the Award may be enforced in the same manner as a judgment of the Court, and that judgment may be entered in the terms of the Award. A sealed copy of the order is exhibited as Exhibit HB-1 to the witness statement of Hannah Brinkley.
No application has been made by KMH to challenge or set aside the Award under sections 67, 68, or 69 of the Arbitration Act 1996, and the time for making any such application has now expired.
2.2 Worldwide Freezing Order
In light of the substantial judgment debt and the Judgment Creditor's well-founded concerns regarding the dissipation of KMH's assets, the Judgment Creditor applied to this Court for freezing relief.
A Worldwide Freezing Order ("WFO") was granted by Mr. Justice Ashworth without notice on 16 July 2024, restraining KMH from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets, whether located within the jurisdiction or elsewhere, up to the value of £108,600,000. The WFO was granted on the basis that there was a good arguable case (the Award having been issued and being plainly enforceable) and that there was a real risk that KMH would dissipate its assets so as to render any judgment unenforceable.
The WFO was continued with modifications on the return date of 30 July 2024, following a contested inter partes hearing at which KMH was represented by Harkness Whitford & Co. At the return date hearing, Mr. Justice Ashworth was satisfied that the grounds for the WFO remained established and that the evidence of dissipation risk had, if anything, strengthened in the intervening period. The modifications made at the return date included certain clarifications to the scope of the ordinary living expenses and ordinary course of business exceptions, but the core prohibitions of the WFO were maintained in full.
The WFO includes ancillary disclosure provisions requiring KMH to disclose, by way of affidavit sworn within 14 days of the date of the original order, all of its assets worldwide exceeding £25,000 in value, identifying them by category, location, value, and the name and address of the person holding or controlling each asset. The disclosure was required to include, without limitation, details of all bank accounts, securities, vessels, real property, receivables, intercompany loans, and interests in corporate entities.
KMH's compliance with its disclosure obligations has been, in the Judgment Creditor's respectful submission, incomplete and evasive. KMH provided a disclosure affidavit that the Judgment Creditor considers to be materially deficient in several respects, as detailed in the witness statement of Hannah Brinkley. Notwithstanding these deficiencies, information obtained through the WFO disclosure process, together with the independent asset tracing work conducted by Hartwell Pemberton LLP (forensic accountants engaged by Calderwood & Harkness LLP on behalf of TSL), has identified accounts maintained by KMH at Meridian Trust Bank Ltd. in London.
The identification of these accounts provides the factual basis for the present application.
2.3 Debt Owed by Meridian Trust Bank Ltd. to KMH
The information available to the Judgment Creditor indicates that Korinthian Maritime Holdings Ltd. maintains one or more accounts at Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA. Meridian Trust Bank Ltd. is understood to serve as KMH's primary London correspondent bank, through which KMH conducts its sterling and US dollar banking operations in the United Kingdom, including the receipt of charter hire payments, the servicing of vessel-related obligations, and the movement of funds between its various group entities.
As a matter of law, the sums standing to the credit of such account(s) constitute a debt owed by Meridian Trust Bank Ltd. (as banker) to KMH (as account holder) within the well-established principle that the relationship between banker and customer is one of debtor and creditor: see Foley v Hill [1848] 2 HLC 28. This debt falls squarely within the definition of a debt amenable to a third-party debt order under CPR 72.2, which applies to any debt due or accruing due from the third party to the judgment debtor.
The details of the accounts and sums held, to the extent currently known to the Judgment Creditor, are set out in the witness statement of Hannah Brinkley, Lead Associate at Calderwood & Harkness LLP, dated 5 August 2024, which accompanies this application. Ms. Brinkley's evidence addresses the basis upon which the Judgment Creditor believes that KMH maintains accounts at Meridian Trust Bank Ltd. and that significant sums stand to KMH's credit in those accounts.
The information underpinning the application was obtained through two principal sources:
(a) KMH's disclosure pursuant to the ancillary disclosure provisions of the Worldwide Freezing Order, in which KMH identified (among other banking relationships) accounts held at Meridian Trust Bank Ltd., although the Judgment Creditor believes that the disclosure provided by KMH is incomplete; and
(b) The asset tracing conducted by Hartwell Pemberton LLP, a specialist forensic accounting and investigative services firm. The asset tracing work was led by Rebecca Saunders (Partner, Forensic & Investigative Services) and Mark Huxley (Director), and involved analysis of publicly available information, corporate registry filings, shipping databases, and other open-source intelligence regarding KMH's corporate structure, banking relationships, and asset holdings. Hartwell Pemberton LLP's preliminary asset tracing report dated 15 August 2024 identified KMH's banking relationships, including at Meridian Trust Bank Ltd., and assessed the likely magnitude of funds held at that institution. The relevant extracts from that report are exhibited as Exhibit HB-4 to Ms. Brinkley's witness statement.
The Judgment Creditor believes, on the basis of the information available, that significant sums are presently standing to KMH's credit at Meridian Trust Bank Ltd., although the precise quantum will only be ascertainable once Meridian Trust Bank Ltd. provides the information required by the interim order sought.
2.4 Justification for Without-Notice Application
This application is made without notice to the Judgment Debtor and the Third Party pursuant to CPR 72.3(1), which provides in mandatory terms that an application for an interim third-party debt order "must be made without notice." The procedure established by CPR Part 72 reflects a deliberate legislative choice that the initial interim order should be made ex parte, so as to prevent the judgment debtor from dissipating or removing the funds before the order takes effect. The safeguards for the judgment debtor and the third party are built into the subsequent stages of the procedure: the interim order must be served on both the judgment debtor and the third party, and a further hearing must be fixed at which the court considers whether to make the order final, at which hearing both the judgment debtor and the third party have the right to be heard and to raise objections.
In the present case, even beyond the mandatory requirement of CPR 72.3(1), there is compelling justification for proceeding without notice, given the serious and demonstrated risk of dissipation of assets by KMH. The evidence before the Court in connection with the Worldwide Freezing Order, and the further evidence obtained since the grant of that order, discloses the following pattern of conduct by KMH and its beneficial owners:
(a) Post-award asset transfers. Following the issuance of the Award on 28 June 2024, KMH engaged in a series of transactions designed to disperse its assets internationally through a network of related entities. These entities include Korinthian Bulkers (Singapore) Pte. Ltd. (a Singapore-incorporated subsidiary), Dnepr Shipholding Inc. (a British Virgin Islands company, BVI Company No. 2014876), Korinthian DMCC (a company registered in the Dubai Multi Commodities Centre), and Oceangate Ventures Ltd. (a Cypriot company, Registration No. HE 401293). The transfers included the movement of substantial funds from KMH's accounts to these entities, apparently without commercial justification;
(b) Attempted sale of M/V *Crimson Horizon*. In the period immediately following the Award, KMH took steps to dispose of the M/V Crimson Horizon, one of the three vessels that were the subject of the arbitration. The attempted sale was halted only by the intervention of the Worldwide Freezing Order. This conduct is significant because the M/V Crimson Horizon represents one of KMH's most valuable identifiable assets;
(c) Complex ownership and holding structures. KMH is beneficially owned by the Volkov family, specifically by Andrei Volkov (who is the ultimate beneficial owner ("UBO") and de facto director of KMH, although he does not appear on the Cypriot corporate register as a de jure director) and Sergei Volkov (who is a registered Director of KMH). The Volkov family controls KMH through multiple layers of BVI and Cypriot holding structures, which Hartwell Pemberton LLP's investigations have shown to be designed to facilitate the movement and concealment of assets rather than serving any legitimate commercial purpose; and
(d) Evidence of planned further transfers. The urgency of this application is further underscored by evidence identified by Hartwell Pemberton LLP of planned transfers from KMH's accounts, including accounts held at Meridian Trust Bank Ltd. This evidence, which is described in the witness statement of Hannah Brinkley and in the relevant extracts from the Hartwell Pemberton LLP report, indicates that KMH may be taking or planning to take steps to move funds out of its Meridian Trust Bank Ltd. accounts, potentially in breach of the existing Worldwide Freezing Order.
In these circumstances, the Judgment Creditor submits that there is a real and imminent risk that, if the application were made on notice, the Judgment Debtor would take steps to remove or dissipate the funds held at Meridian Trust Bank Ltd. before the interim order could take effect. The without-notice procedure mandated by CPR 72.3(1) is therefore both procedurally required and substantively justified.
The Judgment Creditor confirms that it has complied with its duty of full and frank disclosure in making this without-notice application. All material facts known to the Judgment Creditor have been disclosed, including matters that are or might be adverse to the application.
2.5 Satisfaction of CPR Part 72 Requirements
The Judgment Creditor submits that all of the requirements for the grant of an interim third-party debt order under CPR Part 72 are satisfied in the present case:
(a) Enforceable judgment. The Judgment Creditor has an enforceable judgment within the meaning of CPR 72.2(a). The LCIA Award dated 28 June 2024 has been granted permission to enforce as a judgment of this Court under section 66 of the Arbitration Act 1996 by the order of Mr. Justice Ashworth dated 2 August 2024. By virtue of that order, the Award has the same force and effect as a judgment of the High Court, and may be enforced accordingly. There is no outstanding challenge to the Award, and the time for any such challenge has expired;
(b) Unsatisfied judgment debt. The judgment debt has not been satisfied in whole or in part. Despite the passage of more than five weeks since the date of the Award and three days since the grant of permission to enforce, KMH has made no payment whatsoever. No communication has been received from KMH or its solicitors indicating any intention or ability to satisfy the judgment;
(c) Third party within the jurisdiction. The Third Party, Meridian Trust Bank Ltd., is a bank incorporated in England and Wales and carrying on business within the jurisdiction. It has its principal office at 50 Lombard Street, London EC3V 9EA. The Third Party is therefore clearly within the jurisdiction of this Court for the purposes of CPR Part 72;
(d) Debt due or accruing due. The debt owed by the Third Party to the Judgment Debtor — being the sums standing to the credit of KMH's account(s) at Meridian Trust Bank Ltd. — is a present debt, due and accruing due to KMH. It is well established that a credit balance on a bank account constitutes a debt owed by the bank to the customer that is amenable to a third-party debt order: see Foley v Hill [1848] 2 HLC 28; Rogers v Whiteley [1892] AC 118; Société Eram Shipping Co Ltd v Cie Internationale de Navigation [2003] UKHL 30, [2004] 1 AC 260 at [26]. The debt is presently due and payable on demand and is therefore within the scope of CPR 72.2; and
(e) Supporting evidence. The application is supported by the witness statement of Hannah Brinkley dated 5 August 2024, which provides the evidence required by CPR 72.3, including evidence of the judgment debt, the identity of the Third Party, the existence of the debt owed by the Third Party to the Judgment Debtor, and the grounds for the application.
The Judgment Creditor therefore respectfully invites the Court to make an interim third-party debt order in the terms of the draft order appended to this application.
SECTION 3: EVIDENCE IN SUPPORT
3.1 Witness Statement of Hannah Brinkley
This application is supported by the first witness statement of Hannah Brinkley, Lead Associate in the International Disputes and Enforcement Group at Calderwood & Harkness LLP, solicitors for the Judgment Creditor. Ms. Brinkley's witness statement is dated 5 August 2024 and is verified by a statement of truth in accordance with CPR Part 32.
Ms. Brinkley has had day-to-day conduct of this matter on behalf of TSL since the commencement of enforcement proceedings and has personal knowledge of the facts and matters deposed to in her statement, or has set out the source and basis of her knowledge where information has been obtained from other persons or from documents.
Ms. Brinkley's witness statement addresses the following matters in detail:
(a) Background of the charter-party dispute and the LCIA arbitration. Ms. Brinkley provides a narrative account of the commercial relationship between TSL and KMH, the three charter-party agreements, the disputes that arose, the commencement and conduct of the LCIA arbitration (Case No. 224718), and the key findings of the Tribunal;
(b) The Final Award dated 28 June 2024. Ms. Brinkley exhibits a certified copy of the Award and summarises its principal terms, including the total sum awarded (£96,450,000), the breakdown of damages and interest, the allocation of costs (85% to KMH, totalling £12,150,000), and the provisions for post-award interest;
(c) The order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce the Award under section 66 of the Arbitration Act 1996. Ms. Brinkley exhibits the sealed order and describes the circumstances in which it was obtained;
(d) The Worldwide Freezing Order granted 16 July 2024 and continued 30 July 2024. Ms. Brinkley exhibits the sealed WFO and describes its terms, the return date hearing, the disclosure obligations imposed on KMH, and the extent of KMH's compliance (or non-compliance) with those obligations;
(e) Information obtained regarding KMH's accounts at Meridian Trust Bank Ltd. Ms. Brinkley sets out in detail the basis for the Judgment Creditor's belief that sums are standing to KMH's credit at Meridian Trust Bank Ltd. She describes the information obtained from KMH's disclosure and from the independent investigations conducted by Hartwell Pemberton LLP, and explains the significance of the accounts identified. She confirms that Meridian Trust Bank Ltd. is understood to be KMH's primary London correspondent bank;
(f) The urgency of the application. Ms. Brinkley addresses the evidence of planned transfers from KMH's accounts, including at Meridian Trust Bank Ltd., and KMH's pattern of asset dissipation and evasion in the post-award period. She identifies specific transactions and steps taken by KMH that demonstrate the risk that funds held at Meridian Trust Bank Ltd. may be removed or dissipated if the application is not dealt with urgently; and
(g) Reference to the asset tracing findings of Hartwell Pemberton LLP. Ms. Brinkley refers to and exhibits relevant extracts from the preliminary asset tracing report prepared by Hartwell Pemberton LLP, led by Rebecca Saunders (Partner, Forensic & Investigative Services) and Mark Huxley (Director). The report identifies KMH's corporate structure, its network of related entities, its banking relationships (including at Meridian Trust Bank Ltd.), and the movement of funds through the group in the post-award period.
3.2 Exhibits
The following exhibits are appended to and accompany the witness statement of Hannah Brinkley:
Exhibit HB-1: Sealed order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment of the High Court of England and Wales pursuant to section 66 of the Arbitration Act 1996;
Exhibit HB-2: Certified copy of LCIA Award No. 224718 dated 28 June 2024, as issued by the Tribunal comprising Sir Malcolm Fenton-Clarke (Presiding Arbitrator), Professor Athena Drakopoulos (Co-Arbitrator), and Dr. Henrik Dalmqvist (Co-Arbitrator);
Exhibit HB-3: Sealed Worldwide Freezing Order dated 16 July 2024, as continued with modifications on the return date of 30 July 2024, together with the endorsed order from the return date hearing;
Exhibit HB-4: Relevant extracts from Hartwell Pemberton LLP's preliminary asset tracing report dated 15 August 2024, identifying KMH's banking relationships, including accounts maintained at Meridian Trust Bank Ltd., and describing the movement of funds through KMH's corporate group in the post-award period; and
Exhibit HB-5: Copies of the three charter-party agreements that gave rise to the disputes and the arbitration:
(i) Time Charter-Party for M/V Aegean Fortuna, dated 15 March 2019, between Thalassa Shipping & Logistics SA and Korinthian Maritime Holdings Ltd.;
(ii) Time Charter-Party for M/V Crimson Horizon, dated 22 January 2020, between Thalassa Shipping & Logistics SA and Korinthian Maritime Holdings Ltd.; and
(iii) Time Charter-Party for M/V Volga Spirit, dated 10 June 2021, between Thalassa Shipping & Logistics SA and Korinthian Maritime Holdings Ltd.,
each of which contains an LCIA arbitration clause designating London as the seat of arbitration and English law as the governing law.
SECTION 4: DRAFT INTERIM THIRD-PARTY DEBT ORDER
IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)
Claim No. CL-2024-000487
IN THE MATTER OF the Arbitration Act 1996
AND IN THE MATTER OF an arbitration between
THALASSA SHIPPING & LOGISTICS SA (Claimant / Judgment Creditor)
— and —
KORINTHIAN MARITIME HOLDINGS LTD. (Respondent / Judgment Debtor)
INTERIM THIRD-PARTY DEBT ORDER
(Made pursuant to CPR Part 72, Rule 72.3)
[Date to be inserted by the Court]
4.1 Preamble
Upon the application of the Judgment Creditor, Thalassa Shipping & Logistics SA, by application notice filed on 5 August 2024;
And upon reading the said application notice and the first witness statement of Hannah Brinkley, Lead Associate at Calderwood & Harkness LLP, dated 5 August 2024, together with Exhibits HB-1 to HB-5 thereto;
And this application having been considered without a hearing pursuant to CPR 72.3;
And the Court being satisfied that:
(a) the Judgment Creditor has an enforceable judgment against the Judgment Debtor in the sum of £108,600,000 (comprising the Award of £96,450,000 and costs of £12,150,000), together with post-award interest accruing on the principal sum, by virtue of the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment under section 66 of the Arbitration Act 1996;
(b) the judgment debt has not been satisfied in whole or in part;
(c) the Third Party, Meridian Trust Bank Ltd., is within the jurisdiction;
(d) there is reason to believe that the Third Party owes a debt to the Judgment Debtor, being sums standing to the credit of the Judgment Debtor's account(s) at Meridian Trust Bank Ltd.; and
(e) it is just and convenient to make an interim order;
IT IS ORDERED THAT:
4.2 Operative Provisions
1. Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA (the "Third Party"), must not make any payment out of, or otherwise deal with or dispose of, any debt owed by it to the Judgment Debtor, Korinthian Maritime Holdings Ltd. (Cyprus Registration No. HE 387421), including without limitation all sums standing to the credit of any and all accounts held in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd. at Meridian Trust Bank Ltd., whether such accounts are denominated in pounds sterling, United States dollars, euros, or any other currency, and whether such accounts are current accounts, deposit accounts, savings accounts, money market accounts, or accounts of any other description.
2. The amount restrained pursuant to paragraph 1 of this order shall not exceed £108,600,000 (one hundred and eight million six hundred thousand pounds sterling), being the total of the Award of £96,450,000 (ninety-six million four hundred and fifty thousand pounds sterling) and costs of £12,150,000 (twelve million one hundred and fifty thousand pounds sterling), together with:
(a) post-award interest accruing at the rate of 5.25% per annum simple from 29 June 2024 on the sum of £96,450,000 until payment or further order; and
(b) the costs of this application, to be assessed if not agreed.
3. Meridian Trust Bank Ltd. shall, within 7 days of service of this order upon it, provide to the Court and to the Judgment Creditor's solicitors (Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, Reference: SE/LO/HB/PG) written confirmation of the following:
(a) whether Meridian Trust Bank Ltd. holds any accounts in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd.;
(b) the account number(s), type(s), and currency(ies) of any such account(s);
(c) the balance standing to the credit of each such account as at the date of service of this order; and
(d) whether any other person or persons claim an interest in the funds held in any such account(s), and if so, the identity of such person(s) and the nature and basis of their claimed interest.
4. Korinthian Maritime Holdings Ltd. (the "Judgment Debtor") must not take any step to instruct, request, authorise, or cause Meridian Trust Bank Ltd. to transfer, remove, pay away, or otherwise deal with any sums held in any account or accounts in the name of, or for the benefit of, Korinthian Maritime Holdings Ltd. at Meridian Trust Bank Ltd.
4.3 Directions for Service
5. This interim order, together with the application notice dated 5 August 2024 and the first witness statement of Hannah Brinkley dated 5 August 2024 (and Exhibits HB-1 to HB-5 thereto), shall be served on:
(a) Meridian Trust Bank Ltd. at 50 Lombard Street, London EC3V 9EA, marked for the attention of the Legal / Compliance Department; and
(b) Korinthian Maritime Holdings Ltd. at its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus, and also care of its solicitors on the record in these proceedings, Harkness Whitford & Co. (SRA No. 614823), 12 Fetter Lane, London EC4A 1JP.
6. Service shall be effected within 7 days of the date of this order. Service on Harkness Whitford & Co. shall constitute good service on the Judgment Debtor for the purposes of this order.
4.4 Directions for Final Order Hearing
7. A hearing shall be fixed for the consideration of a final third-party debt order under CPR 72.7, such hearing to take place not less than 28 days after the date of service of this interim order on both the Third Party and the Judgment Debtor (or the last of them to be served, if they are served on different dates).
8. At that hearing, the Court will consider whether to make a final third-party debt order requiring Meridian Trust Bank Ltd. to pay over to the Judgment Creditor (or as the Court may direct) all sums standing to the credit of the Judgment Debtor's account(s) at Meridian Trust Bank Ltd., up to the total amount of the judgment debt together with accrued post-award interest and costs.
9. Any objection by Meridian Trust Bank Ltd. or by Korinthian Maritime Holdings Ltd. to the making of a final third-party debt order must be filed with the Court and served on all other parties not less than 3 days before the date fixed for the hearing, and must be accompanied by written evidence setting out the grounds of the objection.
4.5 Costs
10. The costs of and occasioned by this application are reserved to the hearing of the application for a final third-party debt order.
4.6 Liberty to Apply
11. There is liberty to the Judgment Creditor, the Judgment Debtor, or Meridian Trust Bank Ltd. to apply to vary or discharge this order on not less than 48 hours' written notice to the other parties, such notice to be given to the solicitors for the Judgment Creditor (Calderwood & Harkness LLP) and the solicitors for the Judgment Debtor (Harkness Whitford & Co.) at the addresses set out in Section 6 below, and to Meridian Trust Bank Ltd. at its address for service set out in paragraph 5(a) above.
SECTION 5: STATEMENT OF TRUTH
I, Samuel Eklund, Responsible Partner at Calderwood & Harkness LLP, solicitors for the Judgment Creditor, Thalassa Shipping & Logistics SA, confirm that I am duly authorised by the Judgment Creditor to make this statement on its behalf.
I believe that the facts stated in this application notice are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.
The Judgment Creditor, Thalassa Shipping & Logistics SA, believes that the facts stated in this application notice are true. The Judgment Creditor understands that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.
Signed: ________
Samuel Eklund Responsible Partner Calderwood & Harkness LLP 45 Moorgate, London EC2R 6AR
Date: 5 August 2024
The Judgment Creditor's solicitors, Calderwood & Harkness LLP, confirm that they are authorised to sign this statement of truth on behalf of the Judgment Creditor pursuant to CPR Part 22, Practice Direction 22, paragraph 3.7.
SECTION 6: SERVICE DETAILS AND CORRESPONDENCE ADDRESS
6.1 Judgment Creditor's Solicitors
Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR
Reference: SE/LO/HB/PG
Responsible Partner: Samuel Eklund Lead Associate: Hannah Brinkley
Telephone: +44 (0)20 7946 0123
Email: samuel.eklund@calderwoodharkness.com / hannah.brinkley@calderwoodharkness.com
DX: DX 527 London/City
All documents for service on the Judgment Creditor in these proceedings should be served at the above address, marked for the attention of Hannah Brinkley, Reference SE/LO/HB/PG.
6.2 Judgment Debtor's Solicitors (for service)
Harkness Whitford & Co. 12 Fetter Lane London EC4A 1JP
SRA Registration No.: 614823
Reference: RH/CW/JT (Richard Harkness / Catherine Whitford / James Thornbury)
Telephone: +44 (0)20 7822 4500 DX: DX 412 London/Chancery Lane
Harkness Whitford & Co. are the solicitors on the record for the Judgment Debtor, Korinthian Maritime Holdings Ltd., in these proceedings and have accepted service of process on behalf of KMH. Service of this interim order and the accompanying documents on Harkness Whitford & Co. at the above address shall constitute good service on the Judgment Debtor.
6.3 Third Party Bank Address (for service)
Meridian Trust Bank Ltd. 50 Lombard Street London EC3V 9EA
Attention: Legal / Compliance Department
Service of this interim order and the accompanying documents on Meridian Trust Bank Ltd. shall be effected at the above address, marked for the attention of the Legal / Compliance Department.
APPENDIX: SCHEDULE OF JUDGMENT DEBT
The following table sets out the components of the judgment debt in respect of which this application is made:
Calculation of Post-Award Interest:
Daily rate: £96,450,000 × 5.25% ÷ 365 = £13,876.03 per day
As at 5 August 2024 (date of this application), post-award interest has accrued for 38 days (29 June 2024 to 5 August 2024 inclusive):
38 days × £13,876.03 = £527,289.04 (approximately)
Note: Post-award interest continues to accrue at the rate of £13,876.03 per day on the unpaid sum of £96,450,000 until payment or further order. The costs of this application, when assessed, will be added to the total amount due. The figures set out above are without prejudice to any further sums that may become due, including additional costs and interest ordered by the Court.
Filed on behalf of the Judgment Creditor, Thalassa Shipping & Logistics SA by Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR Reference: SE/LO/HB/PG 5 August 2024
Component | Amount (£)
M/V Aegean Fortuna — Wrongful early redelivery damages | 42,300,000
M/V Crimson Horizon — Outstanding hire and damages | 28,150,000
M/V Volga Spirit — Fabricated off-hire restitution | 2,740,000
Loss of profit / market differential damages | 16,480,000
Pre-award interest (5.25% p.a. simple) | 6,780,000
Sub-total (Award) | 96,450,000
LCIA administrative and tribunal costs (85% allocated to KMH) | 3,240,000
TSL legal costs (85% allocated to KMH) | 8,910,000
Sub-total (Costs) | 12,150,000
Total Judgment Debt (Award + Costs) | 108,600,000
Post-award interest at 5.25% p.a. simple on £96,450,000 from 29 June 2024 | Accruing
Total as at 5 August 2024 | Amount (£)
Total Judgment Debt (Award + Costs) | 108,600,000.00
Post-award interest accrued to 5 August 2024 (38 days) | 527,289.04
Grand Total as at 5 August 2024 (approximately) | 109,127,289.04

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

APPLICATION NOTICE FOR AN INTERIM THIRD-PARTY DEBT ORDER PURSUANT TO CPR PART 72

SECTION 1: APPLICATION NOTICE

SECTION 2: GROUNDS OF APPLICATION

SECTION 3: EVIDENCE IN SUPPORT

SECTION 4: DRAFT INTERIM THIRD-PARTY DEBT ORDER

INTERIM THIRD-PARTY DEBT ORDER

IT IS ORDERED THAT:

SECTION 5: STATEMENT OF TRUTH

SECTION 6: SERVICE DETAILS AND CORRESPONDENCE ADDRESS

Record

Parties

Dates

Amounts