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 LCIA ARBITRATION NO. 224718
BETWEEN:
THALASSA SHIPPING & LOGISTICS SA
Claimant/Applicant
— and —
KORINTHIAN MARITIME HOLDINGS LTD.
Respondent
APPLICATION NOTICE AND DRAFT ORDER FOR PARTIAL DISCHARGE OF WORLDWIDE FREEZING ORDER
Filed by Calderwood & Harkness LLP 45 Moorgate, London EC2R 6AR Solicitors for the Claimant
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PART ONE: APPLICATION NOTICE
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 LCIA ARBITRATION NO. 224718
BETWEEN:
THALASSA SHIPPING & LOGISTICS SA Claimant/Applicant
— and —
KORINTHIAN MARITIME HOLDINGS LTD. Respondent
APPLICATION NOTICE (CPR Part 23)
1. Heading and Procedural Information
This Application Notice is filed by the Claimant, Thalassa Shipping & Logistics SA (a Société Anonyme organised under the laws of the Hellenic Republic, registered at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece, GEMI No. 146832507000), by its solicitors, Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR (SRA No. 582917), Reference: SE/LO/HB/PG/TSL-Enforcement.
This application is made pursuant to CPR Part 23 and the inherent jurisdiction of the Court. It is made in existing proceedings under Claim No. CL-2024-000487 in the Commercial Court (Queen's Bench Division), Business and Property Courts of England and Wales.
The Claimant applies for the application to be heard before the Honourable Mr. Justice Ashworth, being the Judge who granted the original Worldwide Freezing Order and who has had continuing conduct of this matter, or before such other Judge of the Commercial Court as may be available.
The solicitors for the Respondent, Korinthian Maritime Holdings Ltd. (a private limited company incorporated in the Republic of Cyprus, Registration No. HE 387421, having its registered office at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus) are Harkness Whitford & Co., 12 Fetter Lane, London EC4A 1JP (SRA No. 614823).
The Claimant estimates that this application will require a hearing time of approximately 30 minutes, or that it may be suitable for determination on the papers in the event the Respondent consents to the order sought.
2. Relief Sought
The Claimant respectfully seeks the following relief:
1. An order varying the Worldwide Freezing Order (the "WFO") made by Mr. Justice Ashworth on 16 July 2024 (granted without notice to the Respondent) and continued with modifications by the order of Mr. Justice Ashworth on the return date of 30 July 2024, so as to reduce the maximum sum restrained under Paragraph 5 of the WFO from £108,600,000 (one hundred and eight million six hundred thousand pounds sterling) to £15,617,726.03 (fifteen million six hundred and seventeen thousand seven hundred and twenty-six pounds and three pence), being the outstanding balance as at 15 March 2025. That outstanding balance comprises the unpaid portion of the Award and Costs, together with post-award interest accrued at the rate of 5.25% per annum simple from 29 June 2024 to 15 March 2025, less all sums recovered to date.
2. An order that the WFO, as so varied, shall remain in full force and effect in all other respects, including but not limited to the ancillary asset disclosure obligations imposed upon the Respondent, the penal notice endorsed upon the WFO, and all provisions regarding the Respondent's obligation not to remove from England and Wales or in any way dispose of, deal with, or diminish the value of any of its assets worldwide up to the revised maximum sum, until further order of the Court.
3. An order providing for the costs of and incidental to this application.
3. Grounds of the Application
The grounds upon which this application is made are as follows:
1. The WFO was originally granted on 16 July 2024, without notice to the Respondent, in the sum of £108,600,000, restraining Korinthian Maritime Holdings Ltd. from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets worldwide up to that amount. The WFO was granted upon the evidence of Nikolaos Papadimitriou, director and authorised representative of the Claimant, who demonstrated in his witness statement dated 14 July 2024 that there was a good arguable case on the merits (the Final Award having been made) and that there was a real risk of dissipation of the Respondent's assets.
2. The WFO was continued with modifications by Mr. Justice Ashworth on the return date of 30 July 2024, at which hearing the Respondent appeared through counsel instructed by Harkness Whitford & Co. and did not dispute the continuation of the WFO, save as to certain limited modifications regarding ordinary course of business exceptions.
3. The WFO was granted in support of the enforcement of LCIA Award No. 224718 dated 28 June 2024, in which the Tribunal awarded the Claimant the total sum of £96,450,000 in damages and pre-award interest, together with £12,150,000 in the costs of the arbitration (reflecting 85% allocation to the Respondent), yielding a combined total of £108,600,000.
4. Since the grant of the WFO, the Claimant has conducted a multi-jurisdictional enforcement campaign in England and Wales, Cyprus, Singapore, and the United Arab Emirates, and has further received a voluntary payment from the Respondent. The total sum recovered as a result of those enforcement proceedings and the voluntary payment is £96,590,000.
5. The maximum restrained sum under the WFO should be reduced to reflect the amounts actually recovered, in accordance with the principle that the Court's jurisdiction to maintain a freezing order is limited to the amount of the outstanding obligation. It is well established that a freezing order should not restrain assets in excess of the amount of the claim: see Customs and Excise Commissioners v. Anchor Foods Ltd. [1999] 1 WLR 1139 at 1149; Dadourian Group International Inc. v. Simms [2006] EWCA Civ 399 at [25]. The Claimant recognises its obligation to apply promptly to reduce the restrained sum as and when partial satisfaction occurs, and this application is brought in timely compliance with that obligation.
6. The Claimant acknowledges its duty of full and frank disclosure and its obligation to inform the Court of material changes in circumstances, including in particular the partial satisfaction of the underlying judgment. The Claimant makes this application in fulfilment of that duty. The Claimant further acknowledges its continuing obligation under the WFO to notify the Respondent and the Court of any further material change in circumstances.
7. The outstanding balance of approximately £15,617,726.03 (calculated as at 15 March 2025 and inclusive of post-award interest) continues to justify the maintenance of the WFO at the reduced level. The Respondent has demonstrated a persistent pattern of asset dissipation and corporate restructuring, as found by this Court in its judgment of 16 July 2024 granting the original WFO, and the continuing risk of further dissipation in respect of remaining assets is amply evidenced by the post-award asset movement analysis prepared by Hartwell Pemberton LLP. The outstanding sum is substantial, and the Claimant's right to the freezing relief at the reduced level remains well-founded.
4. Evidence in Support
This application is supported by the following evidence:
1. The Witness Statement of Hannah Brinkley dated 15 March 2025, Lead Associate at Calderwood & Harkness LLP, setting out in detail the recoveries achieved across all jurisdictions, the calculation of the remaining balance, the continuing risk of dissipation, and the justification for the maintenance of the WFO at the reduced level. The witness statement is filed together with Exhibits HB-1 through HB-12.
2. The original evidence filed in support of the WFO, being the Witness Statement of Nikolaos Papadimitriou dated 14 July 2024, and the exhibits thereto, all of which were before the Court on 16 July 2024 and on the return date of 30 July 2024, and which established the basis for the original grant of the WFO.
3. The asset tracing reports and post-award asset movement analysis prepared by Hartwell Pemberton LLP (25 Old Broad Street, London EC2N 1HN), forensic accountants and asset tracing specialists instructed by the Claimant's solicitors, which confirm the quantum of recoveries to date and identify remaining assets against which enforcement may be pursued. The relevant report, dated 25 November 2024, is exhibited to the Witness Statement of Hannah Brinkley at Exhibit HB-12.
5. Service
This application, together with the draft order and the supporting Witness Statement of Hannah Brinkley with all exhibits, will be served upon Harkness Whitford & Co. at 12 Fetter Lane, London EC4A 1JP, as solicitors on the record for the Respondent, Korinthian Maritime Holdings Ltd.
The Claimant invites the Respondent to consent to the order sought in the terms of the draft order annexed hereto. In the event that the Respondent consents, a draft consent order is annexed for signature by both parties' solicitors, and the Claimant will invite the Court to make the order on the papers without the necessity of a hearing. In the event that the Respondent does not consent, the Claimant will apply for a hearing date to be listed at the earliest convenience of the Court.
CALDERWOOD & HARKNESS LLP 45 Moorgate London EC2R 6AR
Ref: SE/LO/HB/PG/TSL-Enforcement Solicitors for the Claimant
PART TWO: DRAFT ORDER FOR PARTIAL DISCHARGE OF WORLDWIDE FREEZING 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 LCIA ARBITRATION NO. 224718
BETWEEN:
THALASSA SHIPPING & LOGISTICS SA Claimant/Applicant
— and —
KORINTHIAN MARITIME HOLDINGS LTD. Respondent
DRAFT ORDER FOR PARTIAL DISCHARGE OF WORLDWIDE FREEZING ORDER
Before The Honourable Mr. Justice Ashworth
Date: ____
UPON the application of the Claimant, Thalassa Shipping & Logistics SA, by its solicitors Calderwood & Harkness LLP, dated 15 March 2025
AND UPON reading the Witness Statement of Hannah Brinkley dated 15 March 2025, together with Exhibits HB-1 through HB-12
AND UPON reading the original evidence filed in support of the Worldwide Freezing Order, including the Witness Statement of Nikolaos Papadimitriou dated 14 July 2024
AND UPON the Respondent, Korinthian Maritime Holdings Ltd., by its solicitors Harkness Whitford & Co., consenting to this application (or, alternatively, upon hearing Counsel for the Claimant and Counsel for the Respondent)
AND UPON the Court being satisfied that it is just and convenient to make this order
IT IS ORDERED THAT:
Recitals
Recital A — The Original WFO
A. On 16 July 2024, this Court (Mr. Justice Ashworth) granted a Worldwide Freezing Order (the "WFO") against the Respondent, Korinthian Maritime Holdings Ltd., without notice to the Respondent, restraining the Respondent from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets, whether they are in or outside England and Wales, whether in its own name or not, and whether solely or jointly owned, up to the value of £108,600,000 (one hundred and eight million six hundred thousand pounds sterling). The WFO was continued with modifications by order of Mr. Justice Ashworth on the return date of 30 July 2024, at which hearing the Respondent was represented by Counsel instructed by Harkness Whitford & Co. The WFO, as continued and modified, has remained in full force and effect since that date.
Recital B — The Underlying Award
B. The WFO was granted in support of the enforcement of LCIA Award No. 224718 dated 28 June 2024 (the "Award"), issued by a Tribunal consisting of Sir Malcolm Fenton-Clarke (Presiding Arbitrator), Professor Athena Drakopoulos (Co-Arbitrator), and Dr. Henrik Dalmqvist (Co-Arbitrator), with Ms. Fiona Beckett serving as Tribunal Secretary, sitting at London as the seat of arbitration under the LCIA Rules.
The Award ordered the Respondent to pay to the Claimant a total of £96,450,000 (ninety-six million four hundred and fifty thousand pounds sterling) in damages and pre-award interest, comprising the following heads of claim:
(i) £42,300,000 in damages for wrongful early redelivery of the vessel M/V Aegean Fortuna (IMO 9784521);
(ii) £28,150,000 in outstanding hire and damages arising from the charter of the vessel M/V Crimson Horizon (IMO 9801334);
(iii) £2,740,000 in restitution of fabricated off-hire deductions wrongfully applied in respect of the vessel M/V Volga Spirit (IMO 9756892);
(iv) £16,480,000 in loss of profit and market differential damages arising from the Respondent's repudiatory breach of the charterparty agreements; and
(v) £6,780,000 in pre-award interest, calculated at the rate of 5.25% per annum simple.
The Award further allocated 85% of the costs of the arbitration to the Respondent, resulting in a costs liability of £12,150,000 (twelve million one hundred and fifty thousand pounds sterling), comprising £3,240,000 in LCIA administrative fees and tribunal costs, and £8,910,000 in respect of the Claimant's legal costs and disbursements incurred in connection with the arbitration.
The total combined sum of the Award and Costs amounts to £108,600,000.
Post-award interest accrues at the rate of 5.25% per annum simple on the principal sum of £96,450,000 from 29 June 2024 (the day following the date of the Award) until payment, as directed by the Tribunal.
Recital C — Enforcement Proceedings and Permission to Enforce
C. On 15 July 2024, the Claimant filed an application for permission to enforce the Award as a judgment of this Court pursuant to section 66 of the Arbitration Act 1996 (Claim No. CL-2024-000487).
On 2 August 2024, Mr. Justice Ashworth granted the Claimant permission to enforce the Award in the terms of a judgment of this Court, and entered judgment accordingly.
On 19 August 2024, the Respondent filed an application to set aside the Award pursuant to sections 68 and 69 of the Arbitration Act 1996, alleging serious irregularity and error of law. The Respondent's set-aside application was heard by Mr. Justice Ashworth on 7 October 2024.
On 11 October 2024, Mr. Justice Ashworth handed down a reserved judgment dismissing the Respondent's set-aside application in its entirety, finding that there was no serious irregularity within the meaning of section 68 and that the Tribunal had not erred in law on any of the grounds raised under section 69. Costs of the set-aside application were awarded to the Claimant on the indemnity basis.
Recital D — Recoveries in England and Wales
D. On 5 August 2024, the Claimant applied for and obtained an interim third-party debt order against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA, FCA Reference No. 204371) in respect of accounts held by the Respondent at that institution. The interim order was made by Deputy Master Frobisher in the amount of the credit balances standing to the account of the Respondent.
On 3 September 2024, a final third-party debt order was made by Deputy Master Frobisher upon the hearing of the inter partes application. Pursuant to the final order, the sum of £18,720,000 (eighteen million seven hundred and twenty thousand pounds sterling) was garnished from the Respondent's accounts at Meridian Trust Bank Ltd. and paid to the Claimant's solicitors, Calderwood & Harkness LLP, in full satisfaction of the order. The funds were received into the Claimant's client account on 6 September 2024.
Recital E — Recoveries in Cyprus
E. On 9 August 2024, the Claimant, acting through its local counsel, Kyprianos Makrides & Partners (15 Grivas Digenis Avenue, Nicosia 1066, Cyprus), filed an application for recognition and enforcement of the Award in the Nicosia District Court under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) and the Cyprus International Commercial Arbitration Law (Law 101/1987), as amended (Case No. 2247/2024).
On 12 August 2024, a freezing injunction was granted by the Nicosia District Court over the Respondent's shares in Oceangate Ventures Ltd. (a private limited company incorporated in the Republic of Cyprus, Registration No. HE 401293, having its registered office at 28 Themistokli Dervi Avenue, Suite 604, Nicosia 1066, Cyprus), and over the Respondent's bank accounts held at Vireo Savings Bank and Sundial Trust Bank
On 30 September 2024, an enforcement order was granted by the Nicosia District Court recognising the Award and granting leave for its enforcement in Cyprus.
Between 22 October 2024 and 8 November 2024, the Claimant recovered a total of £22,350,000 (twenty-two million three hundred and fifty thousand pounds sterling, GBP equivalent, converted from Euro at the prevailing exchange rates on the respective dates of receipt) from the forced sale of the Respondent's shares in Oceangate Ventures Ltd. and from the Respondent's Cyprus bank accounts. The recoveries were remitted to Calderwood & Harkness LLP's client account in London and have been credited against the outstanding balance under the Award.
Recital F — Recoveries in Singapore
F. On 14 August 2024, the Claimant, acting through its local counsel, Straits Meridian LLP (1 Raffles Place, #44-01 One Raffles Place Tower 2, Singapore 048616), filed an application for leave to enforce the Award in the High Court of the Republic of Singapore pursuant to the International Arbitration Act (Cap. 143A) (Originating Summons No. 872/2024).
On 6 September 2024, the Singapore High Court granted leave to enforce the Award as a judgment of that Court.
On 20 August 2024, the vessel M/V Crimson Horizon (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag), owned by Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898, UEN 201815763K, a wholly-owned subsidiary of the Respondent), was arrested in Singapore waters pursuant to an in rem warrant of arrest issued by the Singapore High Court.
On 18 October 2024, a garnishee order absolute was made by the Singapore High Court against Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909, MAS Licence No. 08/2003) in respect of accounts held by Korinthian Bulkers (Singapore) Pte. Ltd. Pursuant to the garnishee order, the sum of SGD $31,200,000 (approximately £18,450,000 at the prevailing exchange rate) was recovered from those accounts and remitted to the Claimant.
On 15 November 2024, the vessel M/V Crimson Horizon was sold by judicial sale conducted under the supervision of the Sheriff of the Supreme Court of Singapore, achieving a sale price of USD $22,800,000 (twenty-two million eight hundred thousand United States dollars).
On 2 December 2024, the vessel sale proceeds, net of the costs of the judicial sale and the Sheriff's fees, in the amount of approximately £18,330,000 (at prevailing exchange rates), were received by the Claimant via remittance to Calderwood & Harkness LLP's client account.
The total recovery in Singapore was therefore approximately £36,780,000 (thirty-six million seven hundred and eighty thousand pounds sterling).
Recital G — Recoveries in the United Arab Emirates
G. On 22 August 2024, the Claimant, acting through its local counsel, Al-Rashid Hatem & Associates (Office 1802, Emirates Financial Towers (South Tower), DIFC, Dubai, United Arab Emirates), filed an enforcement application in the Dubai Court of First Instance pursuant to UAE Federal Law No. 6 of 2018 on Arbitration and the New York Convention (Case No. 1893/2024).
On 28 August 2024, a precautionary attachment order was granted by the Dubai Court of First Instance over the accounts of Korinthian DMCC (Unit 3407, Almas Tower, Jumeirah Lake Towers, Dubai, UAE, DMCC Licence No. DMCC-72814, a subsidiary of the Respondent) held at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai, UAE).
On 20 November 2024, the Dubai Court of First Instance granted an enforcement order recognising the Award and permitting its enforcement in the UAE.
Between 10 December 2024 and 14 January 2025, the Claimant recovered a total of AED 53,400,000 (approximately £11,340,000 at prevailing exchange rates) from Korinthian DMCC's bank accounts and receivables held at Emirates Gulf Commercial Bank PJSC. The funds were remitted to Calderwood & Harkness LLP's client account in London.
Recital H — Voluntary Payment by KMH
H. On 3 February 2025, the Respondent made a voluntary payment of £7,400,000 (seven million four hundred thousand pounds sterling) to the Claimant, by wire transfer to Calderwood & Harkness LLP's client account, which payment has been credited against the outstanding balance. The payment was made pursuant to a without prejudice save as to costs offer communicated by Harkness Whitford & Co., and the Respondent's solicitors have confirmed in writing that the payment is to be applied in partial satisfaction of the Award and Costs.
Recital I — Summary of Total Recoveries and Outstanding Balance
I. The total amount recovered across all jurisdictions and by way of the voluntary payment is £96,590,000 (ninety-six million five hundred and ninety thousand pounds sterling), broken down as follows:
The outstanding balance is calculated as follows:
Total Award and Costs: £108,600,000
Post-award interest accrued on £96,450,000 at 5.25% per annum simple from 29 June 2024 to 15 March 2025 (a period of 260 days):
£96,450,000 × 0.0525 × (260 ÷ 365) = £3,607,726.03
Grand Total Owed (estimated as at 15 March 2025): £108,600,000 + £3,607,726.03 = £112,207,726.03
Less: Total Recovered: £96,590,000
Outstanding Balance: £112,207,726.03 − £96,590,000 = £15,617,726.03
The total recovery to date represents approximately 88.94% of the combined Award and Costs (before interest), and approximately 86.08% of the Grand Total Owed (inclusive of post-award interest to 15 March 2025).
Recital J — Continued Justification for WFO at Reduced Level
J. The Court is satisfied (or, in the case of a consent order, the parties acknowledge) that the Respondent has demonstrated a pattern of asset dissipation and corporate restructuring since the date of the Award, as evidenced by the findings of Hartwell Pemberton LLP set out in their post-award asset movement analysis dated 25 November 2024, and as found by this Court in its judgment of 16 July 2024 granting the original WFO.
The Claimant continues to pursue enforcement against remaining identifiable assets of the Respondent and its subsidiaries, including in particular the vessel M/V Volga Spirit (IMO 9756892, Panamax Bulk Carrier, 76,400 DWT, Cyprus flag), owned by Dnepr Shipholding Inc. (BVI Company No. 2014876), which was last reported at Fujairah anchorage in the United Arab Emirates, and sub-charterer receivables estimated at approximately £4,200,000.
The continuing risk of dissipation justifies the maintenance of the WFO at the reduced sum of £15,617,726.03, and the Claimant's right to freezing relief at the reduced level remains well-founded.
Operative Provisions
Paragraph 1 — Variation of Maximum Restrained Sum
1. The Worldwide Freezing Order made by Mr. Justice Ashworth on 16 July 2024 and continued with modifications on 30 July 2024 (the "WFO") shall be and is hereby varied such that the maximum sum restrained under Paragraph 5 of the WFO is reduced from £108,600,000 (one hundred and eight million six hundred thousand pounds sterling) to £15,617,726.03 (fifteen million six hundred and seventeen thousand seven hundred and twenty-six pounds and three pence), with effect from the date of this Order.
2. For the avoidance of doubt, the figure of £15,617,726.03 represents the estimated outstanding balance as at 15 March 2025, calculated as set out in Recital I above. The revised maximum restrained sum shall be subject to further variation, whether upward or downward, to account for:
(a) post-award interest continuing to accrue at the rate of 5.25% per annum simple on the unpaid portion of the Award (being such portion of £96,450,000 as remains unsatisfied from time to time);
(b) any further recoveries made by the Claimant in any jurisdiction; and
(c) any further costs ordered by this Court or any other court or tribunal in connection with these proceedings or the enforcement of the Award.
Paragraph 2 — WFO Otherwise to Continue
3. Save as varied by Paragraphs 1 and 2 of this Order, the terms of the Worldwide Freezing Order dated 16 July 2024 (as continued and modified on 30 July 2024) shall remain in full force and effect, including without limitation:
(a) the prohibition on the Respondent from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets, whether they are in or outside England and Wales, whether in its own name or not, and whether solely or jointly owned, up to the revised maximum sum of £15,617,726.03 (as the same may be further varied in accordance with Paragraph 2 above);
(b) all ancillary disclosure obligations imposed upon the Respondent by the WFO, requiring the Respondent to disclose to the Claimant's solicitors the nature, location, and value of all its assets exceeding £25,000 in value, whether in or outside England and Wales, within the time limits specified in the WFO, and to serve a further affidavit of assets if so required;
(c) the penal notice endorsed upon the WFO, and for the avoidance of doubt, the Respondent and any person served with this Order are reminded that breach of the terms of the WFO (as varied by this Order) is a contempt of court and may be punished by imprisonment, fine, or seizure of assets;
(d) all exceptions to the WFO permitting the Respondent to spend reasonable sums on ordinary living expenses, ordinary and proper business dealings, and legal advice and representation, as set out in the WFO, subject to the conditions and notification requirements therein specified; and
(e) all other provisions of the WFO not expressly varied by this Order.
Paragraph 3 — Obligation to Notify of Further Recoveries
4. The Claimant shall, within 7 days of any further recovery or receipt of funds (howsoever arising) in partial or full satisfaction of the Award, the Costs, or the post-award interest, notify the Court (by filing a letter with the Clerk to Mr. Justice Ashworth, or such other Judge as may have conduct of this matter) and the Respondent's solicitors, Harkness Whitford & Co. (at 12 Fetter Lane, London EC4A 1JP), in writing of:
(a) the amount recovered;
(b) the jurisdiction in which the recovery was made;
(c) the asset or source from which the recovery was made;
(d) the date of receipt of the funds; and
(e) the revised outstanding balance calculated as at the date of such recovery.
5. The Claimant shall, within 14 days of any such further recovery, apply to this Court for a further variation of the maximum restrained sum under the WFO (as varied by this Order) to reflect the reduced outstanding balance, and shall file a draft order in the terms sought. In the event that the parties are able to agree the revised figure, they may submit a consent order for approval on the papers.
Paragraph 4 — Liberty to Apply
6. Either party shall have liberty to apply to vary or discharge this Order or the WFO (as varied by this Order) on not less than 3 clear days' notice to the other party, such notice to be given in writing to the other party's solicitors at the addresses set out above.
Paragraph 5 — Costs
7. The costs of and incidental to this application shall be costs in the enforcement proceedings, to be assessed on the standard basis if not agreed.
SCHEDULE — SUMMARY OF AMOUNTS
BY THE COURT
________________________________________
The Honourable Mr. Justice Ashworth
Date: ________
PART THREE: WITNESS STATEMENT OF HANNAH BRINKLEY
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 LCIA ARBITRATION NO. 224718
BETWEEN:
THALASSA SHIPPING & LOGISTICS SA Claimant/Applicant
— and —
KORINTHIAN MARITIME HOLDINGS LTD. Respondent
WITNESS STATEMENT OF HANNAH BRINKLEY
I, HANNAH BRINKLEY, of Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, Lead Associate, state as follows:
Introduction
1. I am a Lead Associate in the International Disputes and Enforcement team at Calderwood & Harkness LLP, solicitors for the Claimant in these proceedings. I am a solicitor of the Senior Courts of England and Wales, having been admitted to the Roll in 2016 (SRA No. 658412). I hold an LLM in International Commercial Law from University College London (2015). I have had day-to-day conduct of the enforcement proceedings brought on behalf of Thalassa Shipping & Logistics SA ("Thalassa" or the "Claimant") against Korinthian Maritime Holdings Ltd. ("KMH" or the "Respondent") since July 2024, under the overall supervision of Samuel Eklund, Partner.
2. I make this witness statement in support of the Claimant's application for partial discharge of the Worldwide Freezing Order (the "WFO") in Claim No. CL-2024-000487. Unless otherwise stated, the facts and matters set out in this statement are within my own knowledge and are true. Where the facts and matters are not within my own knowledge, I identify the source of the information and believe them to be true. Where I refer to documents, the relevant documents are exhibited to this statement and are identified by the exhibit reference numbers set out in the text.
3. There is now produced and shown to me a paginated bundle of exhibits marked "HB-1" to "HB-12", to which I will refer in this statement.
Background
The Award and the WFO
4. On 28 June 2024, the Tribunal in LCIA Arbitration No. 224718 (comprising Sir Malcolm Fenton-Clarke as Presiding Arbitrator, Professor Athena Drakopoulos as Co-Arbitrator, and Dr. Henrik Dalmqvist as Co-Arbitrator, with Ms. Fiona Beckett as Tribunal Secretary) issued its Final Award (the "Award"), ordering the Respondent to pay to the Claimant a total of £96,450,000 in damages and pre-award interest. The Award further allocated 85% of the costs of the arbitration to the Respondent, resulting in a costs liability of £12,150,000, yielding a total combined sum of £108,600,000. A copy of the Award is exhibited hereto at Exhibit HB-2.
5. The Award arose from charter-party disputes concerning three dry-bulk carriers — the M/V Aegean Fortuna (IMO 9784521), the M/V Crimson Horizon (IMO 9801334), and the M/V Volga Spirit (IMO 9756892) — all of which were the subject of English-law governed time charter-party agreements containing LCIA arbitration clauses with London as the seat of arbitration. The disputes arose from the Respondent's wrongful early redelivery of the Aegean Fortuna, its failure to pay hire and damages in respect of the Crimson Horizon, its fabrication of off-hire deductions in respect of the Volga Spirit, and its repudiatory breach of the charterparty agreements giving rise to loss of profit and market differential damages.
6. On 16 July 2024, this Court (Mr. Justice Ashworth) granted a Worldwide Freezing Order against the Respondent, without notice, in the sum of £108,600,000, upon the evidence of Nikolaos Papadimitriou, a director and authorised representative of Thalassa, who set out in his witness statement dated 14 July 2024 the grounds for the application, including the existence of a good arguable case (the Award having already been made), the real risk of dissipation of the Respondent's assets, and the location and nature of the Respondent's worldwide assets. A copy of the WFO (as continued on 30 July 2024) is exhibited hereto at Exhibit HB-1.
7. On 2 August 2024, Mr. Justice Ashworth granted the Claimant permission to enforce the Award as a judgment of this Court pursuant to section 66 of the Arbitration Act 1996. A copy of the order granting permission is exhibited hereto at Exhibit HB-3.
8. On 19 August 2024, the Respondent filed an application to set aside the Award under sections 68 and 69 of the Arbitration Act 1996. On 11 October 2024, Mr. Justice Ashworth dismissed the Respondent's set-aside application in its entirety, with costs awarded to the Claimant on the indemnity basis. A copy of the order dismissing the set-aside application is exhibited hereto at Exhibit HB-4.
Enforcement Campaign and Recoveries
9. Since the grant of the WFO and the permission to enforce the Award, Calderwood & Harkness LLP has coordinated a multi-jurisdictional enforcement campaign on behalf of the Claimant, in conjunction with local counsel in Cyprus (Kyprianos Makrides & Partners, 15 Grivas Digenis Avenue, Nicosia 1066, Cyprus), Singapore (Straits Meridian LLP, 1 Raffles Place, #44-01 One Raffles Place Tower 2, Singapore 048616), and the United Arab Emirates (Al-Rashid Hatem & Associates, Office 1802, Emirates Financial Towers (South Tower), DIFC, Dubai, UAE), and with the assistance of Hartwell Pemberton LLP (25 Old Broad Street, London EC2N 1HN), forensic accountants and asset tracing specialists. I set out below a summary of the recoveries achieved in each jurisdiction.
England and Wales — Third-Party Debt Order against Meridian Trust Bank Ltd.
10. On 5 August 2024, the Claimant applied for and obtained an interim third-party debt order against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA) in respect of accounts held by the Respondent at that institution. On 3 September 2024, a final third-party debt order was made by Deputy Master Frobisher, and the sum of £18,720,000 was garnished from the Respondent's accounts at Meridian Trust Bank Ltd. and paid to Calderwood & Harkness LLP's client account on behalf of the Claimant. The funds were received on 6 September 2024 and have been credited against the outstanding balance under the Award. A copy of the final third-party debt order is exhibited hereto at Exhibit HB-5.
Cyprus — Forced Sale of Oceangate Ventures Ltd. Shares and Bank Accounts
11. On 9 August 2024, the Claimant filed an application in the Nicosia District Court for recognition and enforcement of the Award under the New York Convention and Cyprus International Commercial Arbitration Law (Case No. 2247/2024). On 12 August 2024, a freezing injunction was obtained over the Respondent's shares in Oceangate Ventures Ltd. (Cyprus Registration No. HE 401293) and the Respondent's bank accounts held at Vireo Savings Bank and Sundial Trust Bank On 30 September 2024, the Nicosia District Court granted an enforcement order. Between 22 October 2024 and 8 November 2024, the Claimant recovered a total of £22,350,000 (GBP equivalent, converted from Euro at the prevailing exchange rates on the respective dates of receipt) from the forced sale of the Respondent's shares in Oceangate Ventures Ltd. and from the Respondent's Cyprus bank accounts. Confirmation of the recovery from Kyprianos Makrides & Partners, dated 8 November 2024, is exhibited hereto at Exhibit HB-6.
Singapore — Garnishee Order against Pinnacle Bank (Singapore) Ltd.
12. On 14 August 2024, the Claimant filed an application for leave to enforce the Award in the Singapore High Court pursuant to the International Arbitration Act (Cap. 143A) (Originating Summons No. 872/2024). Leave to enforce was granted on 6 September 2024. On 18 October 2024, a garnishee order absolute was made against Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909), and the sum of SGD $31,200,000 (approximately £18,450,000 at the prevailing exchange rate) was recovered from accounts held by Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898), a wholly-owned subsidiary of the Respondent. The funds were remitted to Calderwood & Harkness LLP's client account. Confirmation of the Singapore garnishee recovery from Straits Meridian LLP is exhibited hereto at Exhibit HB-7.
Singapore — Judicial Sale of M/V *Crimson Horizon*
13. On 20 August 2024, the vessel M/V Crimson Horizon (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag), owned by Korinthian Bulkers (Singapore) Pte. Ltd., was arrested in Singapore waters pursuant to an in rem warrant of arrest. On 15 November 2024, the vessel was sold by judicial sale for USD $22,800,000. On 2 December 2024, the vessel sale proceeds, in the amount of approximately £18,330,000 (at prevailing exchange rates, net of the costs of the judicial sale and the Sheriff's fees), were received by the Claimant via remittance to Calderwood & Harkness LLP's client account. Confirmation of the vessel sale and remittance records from Straits Meridian LLP is exhibited hereto at Exhibit HB-8. The total recovery in Singapore was therefore approximately £36,780,000.
United Arab Emirates — Bank Accounts and Receivables
14. On 22 August 2024, the Claimant filed an enforcement application in the Dubai Court of First Instance under UAE Federal Law No. 6 of 2018 and the New York Convention (Case No. 1893/2024). On 28 August 2024, a precautionary attachment was obtained over the accounts of Korinthian DMCC (Unit 3407, Almas Tower, JLT, Dubai), a subsidiary of the Respondent, held at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai). On 20 November 2024, the Dubai Court of First Instance granted an enforcement order. Between 10 December 2024 and 14 January 2025, the Claimant recovered a total of AED 53,400,000 (approximately £11,340,000 at prevailing exchange rates) from Korinthian DMCC's bank accounts and receivables at Emirates Gulf Commercial Bank PJSC. The funds were remitted to Calderwood & Harkness LLP's client account. Confirmation of the UAE recovery from Al-Rashid Hatem & Associates, dated 14 January 2025, is exhibited hereto at Exhibit HB-9.
Voluntary Payment by KMH
15. On 3 February 2025, the Respondent made a voluntary payment of £7,400,000 to the Claimant by wire transfer to Calderwood & Harkness LLP's client account. The payment was made following a without prejudice save as to costs offer communicated by Harkness Whitford & Co., and was accompanied by a letter from Harkness Whitford & Co. confirming that the payment was to be applied in partial satisfaction of the Award and Costs. The bank receipt and acknowledgment letter from Harkness Whitford & Co., dated 3 February 2025, are exhibited hereto at Exhibit HB-10.
Outstanding Balance Calculation
16. The total amount of the Award and Costs is £108,600,000, comprising £96,450,000 in damages and pre-award interest and £12,150,000 in costs.
17. Post-award interest accrues at the rate of 5.25% per annum simple on the principal award sum of £96,450,000, running from 29 June 2024 (the day following the date of the Award) until payment. For the purposes of this application, I have calculated the post-award interest accrued from 29 June 2024 through 15 March 2025, a period of 260 days, as follows:
£96,450,000 × 0.0525 × (260 ÷ 365) = £3,607,726.03
18. The calculation of the outstanding balance as at 15 March 2025 is therefore as follows:
Grand Total Owed: £108,600,000 + £3,607,726.03 = £112,207,726.03