CALDERWOOD & HARKNESS LLP Barristers and Solicitors
45 Moorgate London EC2R 6AR United Kingdom
Telephone: +44 (0)20 7946 0100 Facsimile: +44 (0)20 7946 0199 www.calderwoodharkness.com
PRIVILEGED AND CONFIDENTIAL — ATTORNEY-CLIENT COMMUNICATION
10 March 2025
Mr. Nikolaos Papadimitriou Chairman & Chief Executive Officer Thalassa Shipping & Logistics SA 14 Akti Miaouli, 4th Floor Piraeus 185 35 Greece
Ms. Ioanna Christodoulou General Counsel Thalassa Shipping & Logistics SA 14 Akti Miaouli, 4th Floor Piraeus 185 35 Greece
From: Samuel Eklund, Responsible Partner, Litigation Hannah Brinkley, Lead Associate, Litigation
Re: Enforcement of LCIA Award No. 224718 — Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd. Commercial Court Claim No. CL-2024-000487 and Related Cross-Border Proceedings Final Status Report and Matter Close Recommendation
Dear Mr. Papadimitriou and Ms. Christodoulou,
We write to provide Thalassa Shipping & Logistics SA ("TSL") with this comprehensive Final Status Report and Matter Close Recommendation in connection with the multi-jurisdictional enforcement campaign conducted on behalf of TSL following the Final Award issued by the tribunal in LCIA Arbitration No. 224718 on 28 June 2024. This report summarises the enforcement proceedings undertaken in each of the four target jurisdictions, sets out the total recoveries achieved, identifies residual recovery opportunities, and presents our recommendations for the orderly wind-down of active enforcement and transition to a reduced-scope monitoring phase.
This letter and all appendices enclosed herewith are protected by legal professional privilege and are intended solely for the addressees named above and such other persons within TSL as may be authorised to receive them. No waiver of privilege is intended by the circulation of copies to the individuals identified in the distribution list set out at the conclusion of this report.
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1. Executive Summary
The purpose of this report is to provide TSL with a comprehensive final account of the multi-jurisdictional enforcement campaign that Calderwood & Harkness LLP ("C&H") has conducted on TSL's behalf since September 2024, directed at the enforcement and recovery of the Final Award dated 28 June 2024 rendered by the tribunal in LCIA Arbitration No. 224718 (the "Award"). The Award was made in favour of TSL and against Korinthian Maritime Holdings Ltd. ("KMH"), a private limited company incorporated in Cyprus (Registration No. HE 387421), in the principal sum of £96,450,000 in damages and interest, together with costs of the arbitration and TSL's legal costs in the amount of £12,150,000, for a combined total of £108,600,000 (the "Award plus Costs").
The enforcement campaign was conducted simultaneously across four jurisdictions — England and Wales, the Republic of Cyprus, Singapore, and the United Arab Emirates — in order to maximise recovery by targeting the identified assets and operations of KMH and its subsidiaries and associated entities in each of those jurisdictions. The campaign was further supported by a Worldwide Freezing Order ("WFO") obtained in the Commercial Court of England and Wales, comprehensive asset tracing conducted by Hartwell Pemberton LLP, and vessel valuations prepared by Northcape Maritime Advisory Ltd.
As at the date of this report, the total amount recovered across all jurisdictions, including a voluntary payment made by KMH on 3 February 2025, stands at £96,590,000, representing approximately 88.94% of the Award plus Costs. The outstanding balance, inclusive of post-award interest accrued at the contractual rate of 5.25% per annum simple through 15 March 2025, is approximately £15,617,726.03.
In light of the substantial recovery achieved, the completion of active enforcement proceedings in all four jurisdictions, and the diminishing returns anticipated from further active steps at this stage, it is our recommendation that TSL authorise the following measures:
(a) the transition from active enforcement to a reduced-scope monitoring phase, under which C&H and local counsel will continue to track KMH's remaining assets — in particular, the M/V Volga Spirit — and pursue sub-charterer receivable attachments on an opportunistic basis;
(b) the filing of an application in the Commercial Court for partial discharge of the Worldwide Freezing Order, reducing the maximum restrained amount from £108,600,000 to the current outstanding balance of approximately £15,617,726.03, consistent with TSL's continuing duties of full and frank disclosure to the English court;
(c) the pursuit of residual recovery opportunities, including the arrest of M/V Volga Spirit and attachment of identified sub-charterer receivables, on a limited basis and within the remaining fee cap headroom; and
(d) the formal closure of the active enforcement engagement, with a target matter close date of 15 March 2025, with any residual monitoring activities to be governed by a separate reduced-scope engagement letter.
The engagement commenced on 12 September 2024 pursuant to the engagement letter of that date. Over the approximately six-month period of active enforcement, C&H has coordinated proceedings in four jurisdictions with three local counsel teams, one forensic advisory firm, and one maritime valuation expert, and has achieved what we believe to be an excellent result in the circumstances, particularly given the complexity of KMH's corporate structure, the geographical dispersion of its assets, and the clear evidence of post-award dissipation and evasive conduct by KMH's beneficial owners and management.
The balance of this report is structured as follows: Section 2 sets out the relevant background to the dispute, the Award, and the enforcement engagement; Section 3 provides a detailed jurisdiction-by-jurisdiction summary of the enforcement proceedings; Section 4 presents the comprehensive recovery summary, outstanding balance calculation, and asset tracing findings; Section 5 identifies remaining enforcement opportunities; Section 6 sets out our recommendations; Section 7 addresses the fee position and financial summary; Section 8 deals with document retention and administrative matters; and Section 9 offers our closing observations.
2. Background
2.1 The Underlying Dispute and Award
TSL is a société anonyme organised under Greek law with its principal offices in Piraeus, Greece. TSL operates a fleet of thirty-four vessels engaged in the international carriage of dry-bulk and general cargo, generating annual revenues of approximately €620 million (FY2023). TSL's ownership structure comprises a 72% interest held by the Papadimitriou family trust and a 28% interest held by Aegean Capital Partners SA.
Between 2019 and 2021, TSL entered into three time charter-party agreements with KMH for the employment of the following vessels:
(i) M/V *Aegean Fortuna* — time charter-party dated 15 March 2019;
(ii) M/V *Crimson Horizon* — time charter-party dated 22 January 2020; and
(iii) M/V *Volga Spirit* — time charter-party dated 10 June 2021.
Each of the three charter-party agreements was governed by English law and contained an arbitration clause providing for the resolution of disputes by arbitration under the rules of the London Court of International Arbitration ("LCIA"), with London as the seat of arbitration.
Commencing in mid-2022, KMH engaged in a series of repudiatory breaches of all three charter-party agreements, which formed the basis of TSL's claims in the arbitration. Specifically:
(a) M/V *Aegean Fortuna*: KMH effected a wrongful early redelivery of the vessel on 18 June 2022, some fourteen months prior to the contractual redelivery date, without justification and in breach of its obligations under the charter-party. TSL was thereby deprived of the benefit of the balance of the charter period and was forced to seek alternative employment for the vessel in a market that had moved against it.
(b) M/V *Crimson Horizon*: KMH ceased making hire payments under the charter-party from 1 July 2022, notwithstanding that it continued to trade the vessel. The hire arrears accumulated to a total of £4,280,000 before TSL exercised its contractual right to withdraw the vessel from KMH's service on 15 September 2022. The withdrawal crystallised a further claim for loss of bargain damages in respect of the unexpired charter period.
(c) M/V *Volga Spirit*: KMH applied a series of fabricated off-hire deductions against the hire payments due under the charter-party, totalling approximately £2,740,000. These deductions were not supported by any legitimate off-hire events and were found by the tribunal to have been manufactured by KMH's operations team for the purpose of reducing its hire obligations.
TSL filed its Request for Arbitration with the LCIA on 14 November 2022, initiating LCIA Arbitration No. 224718. The tribunal was constituted on 8 February 2023 and comprised the following members:
• Presiding Arbitrator: Sir Malcolm Fenton-Clarke
• Claimant-nominated Arbitrator: Professor Athena Drakopoulos
• Respondent-nominated Arbitrator: Dr. Henrik Dalmqvist
• Tribunal Secretary: Ms. Fiona Beckett
The proceedings were conducted in accordance with the LCIA Rules (2020 edition). Following the exchange of written submissions, witness statements, and expert reports, the tribunal convened an evidentiary hearing over ten hearing days from 11 to 22 September 2023, which took place at the International Dispute Resolution Centre ("IDRC") in London. Both parties were represented by counsel and had the full opportunity to present their respective cases, including the examination and cross-examination of witnesses of fact and expert witnesses.
The tribunal issued its Final Award on 28 June 2024. The Award was unanimous. The tribunal found in favour of TSL on all material claims and awarded damages, interest, and costs as summarised in Section 2.2 below.
2.2 Award Breakdown
The Award comprises the following components:
At the exchange rate prevailing on the date of the Award (£1 = USD $1.2441), the grand total is equivalent to approximately USD $135,120,000.
The Award provides for post-award interest at the rate of 5.25% per annum simple on the unpaid amounts from 29 June 2024 until the date of payment. As discussed in Section 4.2 below, post-award interest continues to accrue on the outstanding balance and forms part of the total amount owed by KMH to TSL.
2.3 KMH Corporate Structure and Asset Position
KMH is a private limited company incorporated in Nicosia, Cyprus (Registration No. HE 387421), with its registered office at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus. KMH is beneficially owned by the Volkov family — principally Andrei Volkov, who acts as the ultimate beneficial owner ("UBO") and de facto director, and Sergei Volkov, who serves as a registered director — through a layered structure of British Virgin Islands ("BVI") and Cypriot holding entities. The estimated pre-dispute net asset value of the KMH group was approximately USD $280 million, and the group operated a fleet of approximately eighteen dry-bulk carriers through a network of single-ship special purpose vehicles ("SPVs").
The key KMH subsidiaries and SPVs that were identified as targets for enforcement are as follows:
(a) Korinthian Bulkers (Singapore) Pte. Ltd., a company incorporated in Singapore with its registered office at 80 Robinson Road, #14-02, Singapore 068898. This entity held proceeds from the operation of vessels in the Asia-Pacific region and was the registered owner of M/V Crimson Horizon.
(b) Dnepr Shipholding Inc., a BVI company (Company No. 2014876) with its registered agent at Vantage Corporate Services Ltd., Road Town, Tortola, British Virgin Islands. Dnepr Shipholding Inc. is the registered owner of M/V Aegean Fortuna and M/V Volga Spirit.
(c) Korinthian DMCC, a company registered in Dubai Multi Commodities Centre with its offices at Unit 3407, Almas Tower, Jumeirah Lakes Towers, Dubai, United Arab Emirates. Korinthian DMCC held operational funds and receivables generated by KMH's Middle Eastern and Gulf operations.
(d) Oceangate Ventures Ltd., a company incorporated in Cyprus (Registration No. HE 401293) with its registered office at 28 Themistokli Dervi Avenue, Suite 604, Nicosia 1066, Cyprus. Oceangate functioned as an intermediate holding company for several of KMH's fleet SPVs, including Dnepr Shipholding Inc.
Key KMH personnel relevant to the enforcement proceedings included Ms. Marina Kazakova, Chief Financial Officer, and Mr. Alexei Demidov, Director of Fleet Operations. Both individuals were involved in KMH's financial management and operational decision-making and were identified in the asset tracing reports prepared by Hartwell Pemberton LLP as having participated in or facilitated the post-award asset dissipation discussed in Section 4.3 below.
Throughout the enforcement proceedings, KMH was represented by Harkness Whitford & Co. (12 Fetter Lane, London EC4A 1JP; SRA Registration No. 614823), acting through Mr. Richard Harkness (Senior Partner), Ms. Catherine Whitford (Partner), and Mr. James Thornbury (Associate). In Cyprus, KMH was represented by Vassiliadis & Economou LLC, acting through Mr. Georgios Vassiliadis and Ms. Eleni Economou.
2.4 Calderwood & Harkness Engagement
C&H was engaged by TSL pursuant to an engagement letter dated 12 September 2024 to conduct multi-jurisdictional enforcement of the Award. The scope of the engagement encompassed the preparation and prosecution of enforcement applications in each target jurisdiction, the obtaining of freezing and restraint orders, asset tracing coordination, and all ancillary steps necessary to maximise recovery of the Award plus Costs.
The C&H engagement team comprised the following members:
• Samuel Eklund, Responsible Partner (hourly rate: £850)
• Linda Osei, Billing Partner (hourly rate: £825)
• Hannah Brinkley, Lead Associate (hourly rate: £540)
• Patrick Gallagher, Working Associate (hourly rate: £420)
The fee arrangements for the engagement were as follows:
• Fee Cap (Phase 2 — Enforcement): £4,200,000, exclusive of disbursements and local counsel fees.
• Success Fee: 2.5% of amounts recovered in excess of £80,000,000. The success fee mechanism was designed to align the firm's interests with those of TSL and to incentivise maximum recovery.
C&H engaged the following local counsel to conduct enforcement proceedings in their respective jurisdictions:
• Cyprus: Kyprianos Makrides & Partners (Mr. Andreas Kyprianos, Ms. Nadia Makrides)
• Singapore: Straits Meridian LLP (Mr. David Teo Wei Lin, Ms. Priya Subramaniam)
• UAE/DIFC: Al-Rashid Hatem & Associates (Mr. Tariq Al-Rashid, Ms. Leila Hatem)
Additionally, C&H engaged the following expert advisors:
• Forensic Accountants and Asset Tracing: Hartwell Pemberton LLP (Ms. Rebecca Saunders, Mr. Mark Huxley)
• Shipping Valuation Experts: Northcape Maritime Advisory Ltd. (Captain Ian Forsyth)
The coordinated engagement of local counsel and expert advisors across multiple jurisdictions was essential to the simultaneous enforcement strategy adopted. The remainder of this report details the results of that strategy.
3. Enforcement Proceedings — Jurisdiction-by-Jurisdiction Summary
3.1 England and Wales
3.1.1 Enforcement Application
On 15 July 2024, C&H filed an application on behalf of TSL in the Commercial Court of England and Wales (the "Commercial Court") for permission to enforce the Award as a judgment of the court, pursuant to Section 66 of the Arbitration Act 1996 (the "1996 Act"). The application was assigned Claim No. CL-2024-000487 and was listed before Mr. Justice Ashworth. Permission to enforce was granted by order dated 2 August 2024. The effect of the order was to render the Award enforceable in England and Wales as if it were a judgment or order of the Commercial Court, thereby enabling TSL to utilise the full range of execution mechanisms available under English civil procedure.
3.1.2 Worldwide Freezing Order
In parallel with the enforcement application, C&H made an urgent without-notice application for a Worldwide Freezing Order pursuant to Section 44 of the 1996 Act and CPR Part 25. The application was supported by the first witness statement of Hannah Brinkley, which set out the basis for the application, including the evidence of risk of asset dissipation and KMH's evasive conduct in the period immediately following the issuance of the Award. The WFO was granted by Mr. Justice Ashworth on 16 July 2024, restraining KMH and its subsidiaries from removing from England and Wales or in any way dealing with, diminishing the value of, or disposing of any of their assets worldwide up to a maximum value of £108,600,000. The WFO included ancillary asset disclosure obligations requiring KMH to disclose, within fourteen days of service, all of its assets worldwide with a value exceeding £25,000, whether held in its own name or by nominees or otherwise on its behalf.
On the return date of 30 July 2024, the WFO was continued with modifications. The modifications included certain adjustments to the ordinary living expenses and legal costs exceptions, and the addition of a provision permitting KMH to continue to meet vessel operating expenses in the ordinary course of business, subject to notification to TSL. KMH attended the return date hearing through Harkness Whitford & Co. and did not dispute the continuation of the WFO, though it reserved its position in respect of the scope of the asset disclosure obligations.
The WFO has been of critical importance to the success of the enforcement campaign. It provided the foundation for the cross-border freezing applications obtained in Cyprus and the UAE, served as a basis for the urgent arrest of M/V Crimson Horizon in Singapore, and deterred further dissipation of KMH's assets during the enforcement period. The WFO remains in force as at the date of this report in respect of the outstanding balance; our recommendations regarding partial discharge are set out in Section 6.1 below.
3.1.3 Third-Party Debt Order
On 5 August 2024, C&H obtained an interim third-party debt order against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA) in respect of accounts held by KMH at that institution. The asset disclosure provided by KMH pursuant to the WFO, supplemented by intelligence gathered by Hartwell Pemberton LLP, identified significant balances held in KMH's accounts at Meridian Trust Bank. The interim order froze the relevant accounts and required Meridian Trust Bank to attend a further hearing to show cause why the amounts standing to KMH's credit should not be paid directly to TSL. On 3 September 2024, the court made a final third-party debt order directing Meridian Trust Bank to pay the sum of £18,720,000 to TSL in satisfaction of the judgment debt to that extent.
3.1.4 Amount Recovered: £18,720,000
The sum of £18,720,000 was received by TSL from Meridian Trust Bank Ltd. on 3 September 2024 pursuant to the final third-party debt order. The funds were transferred to TSL's designated recovery account at Ionian National Bank SA, 22 Stadiou Street, Athens 105 64, Greece.
3.1.5 KMH's Challenge to the Award
On 19 August 2024, Harkness Whitford & Co. filed an application on behalf of KMH to set aside the Award, or alternatively for leave to appeal on points of law, pursuant to Sections 68 and 69 of the 1996 Act. KMH's primary grounds under Section 68 (serious irregularity) were that the tribunal had failed to deal with certain issues raised in KMH's Rejoinder and closing submissions, and that the tribunal's damages assessment was so unreasonable as to constitute a serious irregularity causing substantial injustice. Under Section 69, KMH sought leave to appeal on the questions of (i) the proper measure of damages for wrongful early redelivery of a time-chartered vessel, and (ii) the assessment of loss of bargain damages in respect of M/V Crimson Horizon.
The application was heard by Mr. Justice Ashworth on 7 and 8 October 2024. By a reserved judgment handed down on 11 October 2024, Mr. Justice Ashworth dismissed the application in its entirety. In his judgment, Mr. Justice Ashworth held that:
(a) KMH's challenge under Section 68 was, in substance, a disguised attempt to re-argue the merits of the dispute, which is impermissible under the framework of the 1996 Act. The tribunal had addressed all material issues and had given adequate reasons for its conclusions. The threshold for serious irregularity under Section 68 had not been met.
(b) KMH's application for leave to appeal under Section 69 did not satisfy the criteria set out in Section 69(3) of the 1996 Act. The questions of law identified by KMH were not of general public importance, the tribunal's decisions on those questions were not obviously wrong, and there was no real prospect that the court would reach a different conclusion.
(c) The tribunal had properly applied English law to the assessment of damages and had maintained procedural fairness throughout the ten-day evidentiary hearing. Each party had been given a full and fair opportunity to present its case.
Mr. Justice Ashworth ordered KMH to pay TSL's costs of the set-aside application on the indemnity basis, reflecting the court's view that the application was without merit and ought not to have been brought. The costs of the application were assessed summarily in the amount of £185,000. KMH did not seek permission to appeal from the judgment.
The dismissal of the set-aside application removed the last obstacle to enforcement in England and Wales and confirmed the finality of the Award for enforcement purposes in all jurisdictions.
3.1.6 Current Status
All active enforcement steps in England and Wales have been completed. The WFO remains in force in respect of the outstanding balance. As discussed in Section 6.1, C&H recommends that TSL authorise the filing of an application for partial discharge of the WFO, reducing the maximum restrained amount to the current outstanding balance.
3.2 Cyprus
3.2.1 Enforcement Application
On 9 August 2024, Kyprianos Makrides & Partners filed an application for recognition and enforcement of the Award in the Nicosia District Court (Case No. 2247/2024) on behalf of TSL. The application was brought pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the "New York Convention"), as implemented in Cyprus by the International Commercial Arbitration Law of 1987 (Law 101/1987, as amended), and the Cyprus Arbitration Law (Cap. 4). Cyprus is a signatory to the New York Convention and has a well-established framework for the recognition and enforcement of foreign arbitral awards.
The application was accompanied by duly certified copies of the Award and the arbitration agreements, together with certified translations into Greek, as required by the procedural rules of the Cypriot courts.
3.2.2 Freezing Injunction
Concurrently with the enforcement application, Kyprianos Makrides & Partners obtained a freezing injunction from the Nicosia District Court on 12 August 2024, restraining KMH from dealing with or disposing of its assets in Cyprus, including (i) KMH's 100% shareholding in Oceangate Ventures Ltd. (Registration No. HE 401293) and (ii) KMH's bank accounts at various Cypriot financial institutions. The freezing injunction was obtained on the basis of the English WFO, the evidence of dissipation risk, and the substantial sums at stake.
3.2.3 KMH's Opposition
KMH opposed the enforcement application through its Cypriot counsel, Vassiliadis & Economou LLC. KMH raised defences under Article V of the New York Convention, contending that: (i) enforcement of the Award would be contrary to the public policy of Cyprus (Article V(2)(b)); and (ii) KMH had not been given proper notice of the appointment of the tribunal or of the arbitration proceedings (Article V(1)(b)). Both defences were without merit. The public policy defence was advanced on the basis that the quantum of the Award was allegedly disproportionate — an argument that has been consistently rejected by Cypriot and international courts as an impermissible attempt to review the merits. The notice defence was contradicted by the extensive documentary record of the LCIA proceedings, which demonstrated that KMH had been properly served, had fully participated in the arbitration, and had been represented by counsel throughout.
The Nicosia District Court dismissed both defences and granted the enforcement order on 30 September 2024. KMH did not appeal the enforcement order within the applicable time limit.
3.2.4 Execution and Recovery
Following the grant of the enforcement order, execution proceedings were commenced against KMH's Cypriot assets. The execution comprised two principal elements:
(a) Forced sale of KMH's 100% shareholding in Oceangate Ventures Ltd.: The shares were sold by judicial auction conducted under the supervision of the Nicosia District Court. The sale attracted bids from two qualified purchasers and was completed on 8 November 2024.
(b) Seizure of KMH's Cyprus bank accounts: Amounts standing to the credit of KMH at Cypriot financial institutions were attached and paid over to TSL pursuant to the enforcement order. The seizure was completed on 22 October 2024.
3.2.5 Amount Recovered: £22,350,000
The total recovery in Cyprus, combining the proceeds of the forced sale of the Oceangate Ventures shares and the seized bank account balances, was the GBP equivalent of £22,350,000 (converted from EUR at the prevailing exchange rates on the dates of receipt). All funds were remitted to TSL's designated recovery account at Ionian National Bank SA, 22 Stadiou Street, Athens 105 64, Greece.
3.2.6 Current Status
Enforcement proceedings in Cyprus are complete. Kyprianos Makrides & Partners have confirmed that there are no further steps to be taken in Cyprus at this time, and the firm will close its file in coordination with C&H, subject to any further instructions from TSL.
3.3 Singapore
3.3.1 Enforcement Application
On 14 August 2024, Straits Meridian LLP filed an application on behalf of TSL in the Singapore High Court for leave to enforce the Award in Singapore, pursuant to the International Arbitration Act (Cap. 143A) and the New York Convention. The application was filed as Originating Summons No. 872/2024. Leave to enforce was granted by the Singapore High Court on 6 September 2024 without opposition from KMH or Korinthian Bulkers (Singapore) Pte. Ltd.
3.3.2 Arrest of M/V *Crimson Horizon*
Prior to the grant of leave to enforce, and in an effort to secure one of KMH's most valuable assets in the jurisdiction, Straits Meridian LLP applied for and obtained an order for the arrest of M/V Crimson Horizon (IMO 9801334), a Handymax Bulk Carrier of 37,500 DWT flying the Liberian flag. The vessel was registered in the name of Korinthian Bulkers (Singapore) Pte. Ltd. and was present in Singapore waters at the time of the arrest. The arrest was effected by the Sheriff of the Supreme Court of Singapore on 20 August 2024 pursuant to the High Court (Admiralty Jurisdiction) Act and the applicable rules of court.
KMH and Korinthian Bulkers (Singapore) Pte. Ltd. were given the opportunity to provide security for the release of the vessel but declined to do so. No application to set aside the arrest was filed. Accordingly, the vessel remained under arrest pending the completion of the enforcement proceedings and the determination of the appropriate disposal mechanism.
3.3.3 Garnishee Proceedings
Concurrently with the arrest, Straits Meridian LLP commenced garnishee proceedings against Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in respect of accounts held by Korinthian Bulkers (Singapore) Pte. Ltd. at that institution. The garnishee order nisi was obtained on 2 October 2024. Neither Korinthian Bulkers nor KMH contested the garnishee proceedings, and the garnishee order was made absolute on 18 October 2024.
The amount recovered pursuant to the garnishee order absolute was SGD $31,200,000, which at the prevailing exchange rate was equivalent to approximately £18,450,000.
3.3.4 Judicial Sale of M/V *Crimson Horizon*
Following the grant of leave to enforce and in the absence of any security from KMH, Straits Meridian LLP applied for an order for the judicial sale of M/V Crimson Horizon. The court ordered the sale on 25 October 2024, and the Sheriff of the Supreme Court conducted the sale by invitation of sealed tenders. The sale process attracted significant interest from the market. The vessel valuation prepared by Northcape Maritime Advisory Ltd. (Captain Ian Forsyth), which assessed the fair market value of the vessel at approximately USD $21,500,000 to USD $24,000,000 based on comparable transactions and the vessel's age, condition, and specification, informed the court's assessment of the adequacy of the bids received.
The sale was completed on 15 November 2024 at a price of USD $22,800,000, which fell within the range identified by Northcape Maritime Advisory Ltd. and was considered by the court to represent a fair price. The sale proceeds were received by TSL on 2 December 2024 following the deduction of Sheriff's fees and other costs of sale. The GBP equivalent of the net proceeds was approximately £18,330,000.
3.3.5 Total Singapore Recovery: Approximately £36,780,000
The combined recovery in Singapore — comprising the garnishee order proceeds and the judicial sale proceeds — totalled approximately £36,780,000. All proceeds were remitted to TSL's designated recovery account at Ionian National Bank SA.
3.3.6 Current Status
Active enforcement proceedings in Singapore are complete. Straits Meridian LLP has confirmed that no further steps are required in Singapore at this stage. However, as discussed in Section 5.1, Straits Meridian LLP has been instructed to maintain standing arrest instructions in respect of M/V Volga Spirit should the vessel enter Singapore waters or other Asian ports.
3.4 United Arab Emirates
3.4.1 Enforcement Application
On 22 August 2024, Al-Rashid Hatem & Associates filed an application for recognition and enforcement of the Award in the Dubai Court of First Instance (Case No. 1893/2024) on behalf of TSL, pursuant to UAE Federal Law No. 6 of 2018 (the UAE Arbitration Law) and the New York Convention, to which the UAE is a signatory. The application was supported by certified Arabic translations of the Award, the arbitration agreement contained in each of the three charter-party agreements, and all necessary supporting documentation. The translations and the Award itself were duly legalised through the United Kingdom Foreign, Commonwealth and Development Office ("FCDO") and authenticated by the UAE Embassy in London, as required by UAE procedural law.
3.4.2 Precautionary Attachment
On 28 August 2024, Al-Rashid Hatem & Associates obtained a precautionary attachment order from the Dubai Court of First Instance over the bank accounts of Korinthian DMCC held at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai). The precautionary attachment froze the identified accounts pending the determination of the enforcement application and was obtained on the basis of the Award, the evidence of dissipation risk established by the English WFO proceedings, and the Hartwell Pemberton asset tracing reports.
3.4.3 Enforcement Order and Execution
The Dubai Court of First Instance granted the enforcement order on 20 November 2024, recognising the Award as enforceable in the UAE. Following the grant of the enforcement order, the precautionary attachment was converted to an execution attachment, and Al-Rashid Hatem & Associates commenced the process of executing against the attached assets. Execution targeted the bank account balances held by Korinthian DMCC at Emirates Gulf Commercial Bank, as well as identified receivables owed to Korinthian DMCC by various counterparties in the region.
Recovery commenced on 10 December 2024 and was completed on 14 January 2025, with the final tranche of funds released by Emirates Gulf Commercial Bank following completion of the bank's internal compliance procedures.
3.4.4 Amount Recovered: AED 53,400,000 (≈ £11,340,000)
The total amount recovered in the UAE was AED 53,400,000, which at the prevailing exchange rate was equivalent to approximately £11,340,000. The funds were transferred to TSL's designated recovery account at Ionian National Bank SA.
3.4.5 Current Status
Active enforcement proceedings in the UAE are substantially complete. Al-Rashid Hatem & Associates have confirmed that there are no further identified Korinthian DMCC assets in the UAE at this time. However, as discussed in Section 5.1, Al-Rashid Hatem & Associates have been instructed to maintain standing arrest instructions in respect of M/V Volga Spirit should the vessel call at any UAE port.
3.5 Voluntary Payment by KMH
Following the completion of enforcement proceedings across all four jurisdictions and the cumulative impact of the recoveries described above, KMH made a voluntary payment of £7,400,000 to TSL. The payment was received on 3 February 2025 by wire transfer to TSL's recovery account at Ionian National Bank SA. The payment was made without prejudice to KMH's position regarding the remaining outstanding balance and was acknowledged by letter from C&H to Harkness Whitford & Co. dated 5 February 2025.
In the acknowledgment letter, C&H expressly reserved all of TSL's rights in respect of the remaining outstanding balance, including TSL's right to pursue further enforcement proceedings, to maintain the WFO, and to seek post-award interest on all unpaid sums. KMH has not communicated any proposals for the payment of the remaining balance, and there is no settlement discussion pending as at the date of this report.
4. Comprehensive Recovery Summary
4.1 Recovery Table
The following table summarises all recoveries made in the enforcement campaign to date:
All recovered funds have been remitted to TSL's designated recovery account at Ionian National Bank SA, 22 Stadiou Street, Athens 105 64, Greece.
4.2 Outstanding Balance Calculation
The outstanding balance owed by KMH to TSL as at 15 March 2025, inclusive of post-award interest, is calculated as follows:
Total Award: £96,450,000
Total Costs: £12,150,000
Award + Costs: £108,600,000
Post-award interest (5.25% per annum simple on the Award amount of £96,450,000, accruing from 29 June 2024 through 15 March 2025, being a period of 260 days):
£96,450,000 × 0.0525 × (260 ÷ 365) = £3,607,726.03
Grand Total Owed (estimated through 15 March 2025): £108,600,000 + £3,607,726.03 = £112,207,726.03
Total Recovered: £96,590,000
Outstanding Balance: £112,207,726.03 − £96,590,000 = £15,617,726.03
Recovery Percentage (of Award + Costs, excluding post-award interest): £96,590,000 ÷ £108,600,000 = 88.94% (approximately 89%)
It should be noted that post-award interest continues to accrue at the rate of 5.25% per annum simple on the unpaid portion of the Award. The daily accrual rate on the current outstanding Award balance (being £96,450,000 − £96,590,000 in recovered amounts, though recoveries are applied first to the costs component and then to the principal award in accordance with the standard application hierarchy) is subject to detailed reconciliation, which is set out in Appendix B. For the purposes of this summary, the interest calculation has been computed on the full Award amount for the period from the Award date to the date of the first recovery, and then on the reducing balance for the periods thereafter. The precise interest position at any given date will depend on the order of application of payments and the applicable exchange rate conversions.
4.3 Asset Tracing and Dissipation
Hartwell Pemberton LLP was engaged to conduct a comprehensive global asset tracing exercise in respect of KMH and its associated entities and beneficial owners. Hartwell Pemberton produced the following reports during the course of the engagement:
(i) Preliminary Asset Tracing Report dated 15 August 2024, which identified the principal assets and corporate structure of the KMH group and provided initial intelligence on KMH's banking relationships, vessel ownership, and real property holdings;
(ii) Updated Asset Tracing Report dated 1 October 2024, which incorporated the information obtained from KMH's WFO disclosure and cross-referenced it against publicly available records, maritime databases, and commercial intelligence sources; and
(iii) Post-Award Asset Movement Analysis dated 25 November 2024, which analysed the flow of funds and assets out of KMH and its subsidiaries in the period between the date of the Award (28 June 2024) and the date of service of the WFO (approximately 16 July 2024), as well as any subsequent movements that appeared to be in breach of the WFO.
The Hartwell Pemberton reports revealed significant evidence of post-award asset dissipation by KMH and its principals. The key findings include:
(a) In the period between 28 June 2024 (the date of the Award) and 28 August 2024 (approximately six weeks after the grant of the WFO), substantial transfers were made from KMH's accounts to entities controlled by the Volkov family, including transfers to BVI companies and personal accounts in jurisdictions not covered by the initial enforcement strategy.
(b) KMH attempted to procure the sale of M/V Crimson Horizon to a third-party buyer in the period immediately following the Award, which was frustrated by the timely arrest of the vessel in Singapore on 20 August 2024.
(c) KMH initiated the re-flagging of certain vessels in its fleet, apparently for the purpose of moving them to registries with less developed enforcement frameworks.
(d) Corporate restructuring steps were taken with respect to certain KMH subsidiaries, including the transfer of shareholdings and the amendment of corporate records, which appeared designed to place assets beyond the reach of TSL's enforcement efforts.
This evidence was instrumental in supporting the WFO application and its continuation, the cross-border freezing applications in Cyprus and the UAE, and the urgency of the arrest application in Singapore. The evidence of dissipation also formed the basis of TSL's submission on the return date of the WFO that KMH could not be trusted to comply with its obligations under the WFO without the continuing supervision of the court. As discussed in Section 6.3, the evidence of dissipation may also support potential contempt proceedings against Andrei Volkov and/or Sergei Volkov, should TSL determine that such proceedings would be in its interest.
5. Remaining Enforcement Opportunities
While the active enforcement campaign has achieved a recovery rate of approximately 89%, there remain identifiable opportunities for further recovery which TSL may wish to pursue on a reduced-scope basis. These are summarised below.
5.1 M/V *Volga Spirit*
Vessel Particulars:
• Name: M/V Volga Spirit
• IMO Number: 9756892
• Type: Panamax Bulk Carrier
• Deadweight Tonnage: 76,400 DWT
• Flag: Cyprus
• Registered Owner: Dnepr Shipholding Inc. (BVI Company No. 2014876)
• Beneficial Ownership Chain: Dnepr Shipholding Inc. → Oceangate Ventures Ltd. → KMH
• Last Reported Location: Fujairah anchorage, United Arab Emirates (as at 7 March 2025)
M/V Volga Spirit is the most significant remaining asset of the KMH group that has not yet been the subject of enforcement proceedings. As a Panamax bulk carrier of 76,400 DWT, the vessel has a current estimated market value of approximately USD $18,000,000 to USD $22,000,000, based on Northcape Maritime Advisory Ltd.'s most recent assessment of comparable tonnage.
It should be noted that the registered owner of M/V Volga Spirit is Dnepr Shipholding Inc., a BVI company, and that the forced sale of KMH's shareholding in Oceangate Ventures Ltd. (the intermediate holding company through which KMH held Dnepr Shipholding Inc.) may have affected the beneficial ownership chain. However, TSL's claims against KMH as the judgment debtor, and the vessel's association with the underlying charter-party dispute, provide a basis for arrest in jurisdictions where sister-ship arrest or associated-ship arrest is available.
Assessment: The arrest of M/V Volga Spirit remains a viable enforcement option if the vessel enters a jurisdiction with a favourable legal framework for arrest and judicial sale. The vessel's current location at Fujairah anchorage places it within the UAE, where Al-Rashid Hatem & Associates have confirmed that arrest is available under UAE maritime law. C&H has also prepared an analysis of arrest prospects in Singapore and other potential ports of call in Asia and Europe.
Recommended Approach: C&H recommends that TSL authorise the continued monitoring of M/V Volga Spirit's movements through commercial vessel tracking services, with standing arrest instructions to Al-Rashid Hatem & Associates (for UAE ports) and Straits Meridian LLP (for Singapore and other Asian ports). This monitoring can be conducted at minimal cost and provides TSL with the ability to act quickly if the vessel enters a favourable jurisdiction. The standing arrest instructions should remain in place for a period of twelve months, to be reviewed at the end of that period.
5.2 Sub-Charterer Receivables
The Hartwell Pemberton asset tracing reports and the WFO disclosure identified approximately £4,200,000 in receivables owed to KMH and its subsidiaries by various sub-charterers for hire and freight payments arising from the ongoing employment of vessels in the KMH fleet. These receivables represent a potentially recoverable pool of assets, subject to the practical challenges of identifying the sub-charterers, determining the jurisdiction in which attachment is most effective, and dealing with any competing claims to those funds (including potential set-off claims asserted by the sub-charterers).
Recommended Approach: C&H recommends that TSL authorise the continued pursuit of sub-charterer receivable attachments on a limited basis, through local counsel as appropriate, in jurisdictions where the receivables can be effectively attached. Given the modest quantum of the identified receivables relative to the outstanding balance, and the practical challenges involved, this pursuit should be conducted on a cost-sensitive basis, with individual attachment applications being made only where the expected recovery justifies the cost of the proceedings.
5.3 Additional Interest Accrual
Post-award interest at the rate of 5.25% per annum simple continues to accrue on the unpaid portion of the Award. As at 15 March 2025, the accrued post-award interest is estimated at £3,607,726.03, and this amount increases daily. The ongoing accrual of interest improves TSL's recovery position in two respects: first, it increases the total amount that KMH owes and that TSL is entitled to recover; and second, it provides a continuing incentive for KMH to make further voluntary payments or to engage in settlement discussions.
TSL should be aware that post-award interest is generally recoverable as part of the enforcement of the Award in all four target jurisdictions, and that the outstanding balance, inclusive of interest, may be the subject of further enforcement proceedings at any time.
6. Recommendations
Based on the foregoing analysis, C&H makes the following recommendations for TSL's consideration.
6.1 Partial Discharge of Worldwide Freezing Order
The WFO currently restrains KMH's assets worldwide up to the maximum value of £108,600,000. Given that TSL has now recovered £96,590,000 through the enforcement campaign, the continuing restraint of assets to the full value of the Award plus Costs is no longer proportionate and would, if maintained, expose TSL to the risk of criticism from the court for over-restraint. Moreover, TSL has a continuing duty of full and frank disclosure to the English court, including an obligation to inform the court of material developments in the enforcement proceedings, such as the substantial recoveries achieved in other jurisdictions.
Accordingly, C&H recommends that TSL authorise the filing of an application in the Commercial Court (before Mr. Justice Ashworth, who has had conduct of the matter throughout) for partial discharge of the WFO, reducing the maximum restrained amount from £108,600,000 to the current outstanding balance of approximately £15,617,726.03 (or such other amount as may be appropriate at the date of the application, taking into account any further recoveries or interest accrual in the interim).
A draft application and a draft consent order have been prepared for TSL's review and approval and are enclosed at Appendix C. If KMH consents to the variation, the application may be dealt with on paper without the need for a hearing. If KMH does not consent, C&H will list the application for a short hearing. In either case, the application should be straightforward and the costs should be modest.
We emphasise that partial discharge of the WFO does not affect TSL's ability to enforce the remaining outstanding balance. The WFO, as varied, will continue to restrain KMH's assets up to the reduced amount, and all of TSL's enforcement rights will be preserved.