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CALDERWOOD & HARKNESS LLP Solicitors & International Arbitration Advocates

45 Moorgate London EC2R 6AR United Kingdom

Tel: +44 (0)20 7429 8000

Fax: +44 (0)20 7429 8001

www.calderwoodharkness.com

8 July 2024

SENT BY EMAIL AND FIRST CLASS POST

URGENT

Catherine Whitford Partner, International Arbitration Harkness Whitford & Co. 12 Fetter Lane London EC4A 1JP United Kingdom

Re: LCIA Arbitration No. 224718 — Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd. — Demand for Payment of Final Award

Dear Ms. Whitford,

1. Introduction — Identification of Parties and Engagement

We write on behalf of our client, Thalassa Shipping & Logistics SA ("TSL"), a Société Anonyme organised under the laws of the Hellenic Republic, with its registered address at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece. As you are aware, this firm has acted for TSL throughout the proceedings referred to above and continues to hold full authority to correspond on its behalf in relation to all matters arising out of the Final Award (as defined below).

We understand that your firm, Harkness Whitford & Co. (SRA No. 614823), acts on behalf of Korinthian Maritime Holdings Ltd. ("KMH"), a private limited company incorporated in Cyprus under Registration No. HE 387421, with its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus. We further understand that you continue to hold instructions from KMH in relation to the arbitration and its aftermath. If that understanding is incorrect, we should be grateful if you would inform us immediately and provide details of any replacement solicitors on record for KMH so that this demand may be redirected without delay.

This letter constitutes a formal demand for payment of the Final Award issued in LCIA Arbitration No. 224718, together with all costs allocated to KMH and all interest accruing thereon, as more particularly set out below. The purpose of this letter is to afford KMH a final opportunity to satisfy the Award voluntarily before TSL commences enforcement proceedings in multiple jurisdictions and seeks ancillary relief, including without limitation worldwide freezing orders and vessel arrests.

We ask that you treat this letter with the urgency it warrants and bring its contents to the immediate attention of KMH's directors and officers.

2. Background — The LCIA Arbitration

2.1 The Charter-Party Agreements

The underlying dispute arises out of three time charter-party agreements entered into between TSL (as disponent owner) and KMH (as charterer) between 2019 and 2021, relating to the charter of three dry-bulk carriers within TSL's fleet. The relevant charter-parties are as follows:

(a) A time charter-party dated 15 March 2019 in respect of the vessel M/V *Aegean Fortuna (the "Aegean Fortuna Charter*");

(b) A time charter-party dated 22 January 2020 in respect of the vessel M/V *Crimson Horizon (the "Crimson Horizon Charter*"); and

(together, the "Charter-Parties").

Each of the Charter-Parties was governed by English law. Each contained an arbitration clause providing for the resolution of disputes by arbitration under the Rules of the London Court of International Arbitration (the "LCIA Rules"), with London designated as the juridical seat of the arbitration. The Charter-Parties were negotiated at arm's length between commercially sophisticated parties engaged in the international dry-bulk shipping trade, and KMH was at all material times represented by experienced legal advisors — including, we believe, your firm — in connection with the negotiation and execution of those agreements.

2.2 The Arbitration Proceedings

Following KMH's breaches of the Charter-Parties (summarised in Section 3 below), TSL filed its Request for Arbitration with the LCIA on 14 November 2022, which was registered under LCIA No. 224718.

The Tribunal was constituted on 8 February 2023 and comprised the following members:

(a) Presiding Arbitrator: Sir Malcolm Fenton-Clarke (appointed by the LCIA Court);

(b) Co-Arbitrator (Claimant-nominated): Professor Athena Drakopoulos; and

The arbitration proceeded through written submissions, disclosure, witness statements, and expert reports in the ordinary course. Both parties were afforded full opportunity to present their respective cases, and KMH participated actively in all stages of the proceedings, represented throughout by your firm and counsel instructed by you.

An evidentiary hearing was held over ten hearing days from 11 to 22 September 2023 at the International Dispute Resolution Centre (IDRC), London. The Tribunal heard testimony from factual witnesses called by both parties, as well as expert evidence on shipping market rates, vessel valuations, and quantum of loss. Both parties filed extensive post-hearing submissions.

Following the close of proceedings, the Tribunal issued its Final Award on 28 June 2024 (the "Award" or the "Final Award"). A certified copy of the Award is enclosed with this letter.

3. The Final Award — Summary of the Tribunal's Findings and Amounts Awarded

3.1 KMH's Repudiatory Breaches

The Tribunal found, unanimously on all material points, that KMH had committed repudiatory breaches of each of the three Charter-Parties. The Tribunal's principal findings regarding liability are summarised as follows:

(a) M/V *Aegean Fortuna* — Wrongful Early Redelivery. KMH wrongfully redelivered the vessel M/V Aegean Fortuna on 18 June 2022, approximately 14 months prior to the earliest contractual redelivery date. The Tribunal found that KMH had no lawful basis for the early redelivery, that the purported grounds advanced by KMH (relating to alleged unseaworthiness) were without foundation, and that the early redelivery constituted a repudiatory breach of the Aegean Fortuna Charter. TSL was thereby deprived of the benefit of 14 months of hire income at contractual rates which were significantly above prevailing market rates at the time of redelivery.

(b) M/V *Crimson Horizon* — Failure to Pay Hire. KMH failed to pay hire on the vessel M/V Crimson Horizon from 1 July 2022 onwards, accumulating arrears of £4,280,000 before TSL exercised its contractual right of withdrawal and withdrew the vessel from KMH's service on 15 September 2022. The Tribunal found that KMH's failure to pay hire was deliberate and not attributable to any legitimate set-off or counterclaim, and that KMH's non-payment constituted a repudiatory breach of the Crimson Horizon Charter entitling TSL to damages for the balance of the charter period.

(c) M/V *Volga Spirit* — Fabricated Off-Hire Deductions. KMH made systematic and fabricated off-hire deductions from hire payments due under the Volga Spirit Charter, totalling approximately £2,740,000 in false deductions. The Tribunal found, based on contemporaneous documentation including vessel tracking data, class survey records, and port state control inspection reports, that the off-hire events claimed by KMH had either not occurred at all or had been grossly exaggerated. The Tribunal characterised KMH's conduct as "a deliberate and calculated scheme to deprive TSL of sums lawfully due under the Charter" (Award, paragraph 412). The Tribunal ordered restitution of the full amount of the fabricated deductions.

3.2 Amounts Awarded

The Tribunal awarded TSL the following sums, as set out in the dispositif of the Award at paragraphs 518 to 526:

At the prevailing exchange rate as of the date of the Award (28 June 2024) of £1 = USD $1.2441, the Total Award represents approximately USD $120,000,000.

3.3 Costs Allocation

In addition to the substantive sums set out above, the Tribunal ordered that costs be allocated as follows, reflecting its conclusion that KMH was the unsuccessful party on substantially all issues and that certain of its defences had been advanced without reasonable basis:

3.4 Total Amount Payable

Accordingly, the total amount currently due and payable by KMH under the Award is:

Award plus Costs: £108,600,000 (one hundred and eight million, six hundred thousand pounds sterling)

This figure is exclusive of post-award interest, which is addressed separately in Section 5 below.

4. Demand for Payment

We hereby make formal demand, on behalf of TSL, that KMH pay the full sum of £108,600,000 (one hundred and eight million, six hundred thousand pounds sterling), together with all accrued post-award interest, within 14 days of the date of this letter, that is to say, on or before 22 July 2024.

Payment shall be made in pounds sterling by electronic wire transfer to TSL's designated account at:

Ionian National Bank SA 22 Stadiou Street Athens 105 64, Greece

Full account details, including SWIFT/BIC codes and the relevant IBAN, will be provided to you promptly upon receipt of written confirmation from Harkness Whitford & Co. that KMH will comply with the Award and intends to make payment. TSL is prepared to provide wire transfer instructions immediately upon receipt of such confirmation in order to facilitate timely settlement.

Time is of the essence with respect to this demand. The 14-day period has been selected to afford KMH a reasonable opportunity to arrange payment while reflecting the urgency of the matter and the fact that the Award has been outstanding since 28 June 2024.

5. Post-Award Interest

We draw your attention to the fact that the Award provides for post-award interest at the rate of 5.25% per annum simple on the unpaid substantive sum of £96,450,000, accruing from 29 June 2024 (the day following the date of the Award) until the date on which payment is made in full.

Post-award interest will continue to accrue on all unpaid sums with each passing day that the Award remains unsatisfied. We note that as at the date of this letter, 10 days of post-award interest have already accrued, and the total interest liability will increase materially with each further day of non-payment.

For the avoidance of doubt, the daily interest accrual on the substantive award sum is calculated as follows:

£96,450,000 × 5.25% ÷ 365 = approximately £13,872.60 per day

Every day that KMH delays payment therefore adds a further sum in excess of £13,800 to its total liability. Over the 14-day demand period alone, additional interest of approximately £194,216 will accrue. TSL will seek recovery of all accrued post-award interest in any enforcement proceedings.

6. Consequences of Non-Payment

We wish to make the position entirely clear: if KMH fails to satisfy the Award in full within the 14-day period specified above (i.e., by 22 July 2024), TSL will, without further notice, take all steps available to it to enforce the Award and protect its rights, including but not limited to the following.

6.1 Enforcement Proceedings

TSL will commence proceedings to enforce the Award in multiple jurisdictions simultaneously, including:

(a) England and Wales. TSL will apply to the Commercial Court in London under Section 66 of the Arbitration Act 1996 for leave to enforce the Award in the same manner as a judgment or order of the Court to the same effect, and will seek entry of the Award as a judgment of the High Court. Once entered as a judgment, TSL will be entitled to avail itself of the full range of domestic enforcement mechanisms available under English law, including third-party debt orders, charging orders, and writs of control.

(b) Multiple foreign jurisdictions under the New York Convention. TSL will concurrently commence recognition and enforcement proceedings under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the "New York Convention") in all jurisdictions where KMH and its subsidiaries, affiliates, and related entities hold assets. These jurisdictions include, but are not limited to:

(i) Cyprus — where KMH is incorporated and where it maintains its registered office, and where a number of KMH's subsidiary holding companies and special purpose vehicles are also incorporated;

(ii) Singapore — where KMH's subsidiary, Korinthian Bulkers (Singapore) Pte. Ltd., is incorporated and operates, and where assets including the vessel M/V Crimson Horizon are held or managed; and

(iii) The United Arab Emirates — where KMH's affiliate, Korinthian DMCC, is registered in the Dubai Multi Commodities Centre and maintains accounts and receivables.

(c) Other jurisdictions. TSL has conducted extensive asset-tracing investigations and has identified assets of KMH and its related entities across a number of further jurisdictions. TSL reserves the right to commence enforcement proceedings in any such additional jurisdiction as it considers appropriate.

In connection with the above, we put you on notice that TSL has already identified substantial assets of KMH and its related entities, including the following:

(i) KMH's Cyprus-incorporated subsidiaries and holding companies, through which KMH holds interests in its fleet and other investments;

(ii) Korinthian Bulkers (Singapore) Pte. Ltd. and its assets, including in particular the vessel M/V Crimson Horizon;

(iii) Korinthian DMCC and its accounts and receivables held in Dubai; and

(iv) Bank accounts held by KMH and its related entities at financial institutions in London and other jurisdictions.

TSL is fully prepared to pursue enforcement in each of these jurisdictions simultaneously and has already instructed or is in the process of instructing local counsel in each relevant jurisdiction to act on a standby basis.

6.2 Worldwide Freezing Order

In addition to enforcement proceedings, TSL will apply without notice to the Commercial Court in London for a worldwide freezing order (formerly known as a Mareva injunction) over KMH's assets, up to the full amount of the Award plus Costs and all accruing interest — currently in excess of £108,600,000 and rising daily.

We put you and your client on notice that TSL has obtained evidence suggesting that KMH has been taking active steps to dissipate and restructure its assets in anticipation of enforcement proceedings. This evidence, which includes corporate restructuring filings, inter-company transfers, and changes to beneficial ownership arrangements, will be placed before the Court in full in support of TSL's application for freezing relief. TSL is confident that the evidence establishes a real risk of dissipation sufficient to satisfy the requirements for the grant of such an order.

TSL further reserves the right to seek ancillary disclosure orders requiring KMH to disclose, on affidavit, the nature, value, and location of all of its assets worldwide, whether held in its own name or in the name of nominees, subsidiaries, affiliates, or any other related party.

We remind you that any failure by KMH to comply with the terms of a freezing order, if granted, would constitute a contempt of court carrying the most serious consequences, including committal to prison for individual officers and directors.

6.3 Vessel Arrest

TSL will pursue the arrest of vessels owned by KMH and its subsidiary special purpose vehicles in any jurisdiction where such vessels may be found. Without limiting the generality of the foregoing, TSL will seek the arrest of the following vessels:

(a) M/V *Aegean Fortuna* (IMO No. 9784521);

(b) M/V *Crimson Horizon* (IMO No. 9801334); and

as well as any other vessels beneficially owned by KMH or any entity within the Korinthian group, whether directly or through one-ship company structures, in any port or territorial waters worldwide. TSL's advisors are monitoring the current positions and trading patterns of these vessels and are prepared to move for arrest at short notice.

The arrest of trading vessels, as you will appreciate, carries significant commercial consequences for a shipowner, including the interruption of ongoing chartering commitments, demurrage liabilities, reputational damage with counterparties and P&I clubs, and the costs of providing security for release.

6.4 Costs Warning

We wish to emphasise in the strongest terms that KMH will be liable for all costs of enforcement proceedings, including but not limited to:

(a) TSL's legal costs in the English proceedings, assessed on an indemnity basis;

(b) All disbursements incurred in connection with enforcement, including court fees, process server fees, translation and notarisation costs, and ancillary expenses;

(c) Local counsel fees in each enforcement jurisdiction, including Cyprus, Singapore, the United Arab Emirates, and any other jurisdiction where proceedings are commenced;

(d) Expert fees, including the fees of asset-tracing specialists and forensic accountants; and

(e) Any other costs reasonably incurred by TSL in enforcing its rights under the Award.

These additional costs will be substantial and will significantly increase KMH's total liability, potentially by several million pounds. TSL will pursue recovery of all such costs from KMH and will seek the most favourable costs orders available in each jurisdiction.

It is plainly in KMH's commercial interests to satisfy the Award voluntarily and thereby avoid the very significant additional financial exposure that multi-jurisdictional enforcement would entail. We urge you to advise your client accordingly.

7. Reservation of Rights

Nothing in this letter shall be construed as, or shall operate as, a waiver of any of TSL's rights, remedies, or entitlements under the Award, at law, in equity, or otherwise. This letter is written entirely without prejudice to TSL's rights, all of which are expressly reserved in full.

Without limiting the generality of the foregoing, TSL expressly reserves:

(a) all rights and remedies available to it under the Award, including the right to enforce the Award in any jurisdiction;

(b) all rights and remedies available to it at common law and in equity, including claims in damages, debt, and restitution;

(d) the right to pursue any directors and beneficial owners of KMH personally where the law of the relevant jurisdiction permits, having particular regard to the corporate structure through which KMH operates and the potential for piercing or lifting the corporate veil where the circumstances justify such relief.

TSL's investigation of KMH's corporate structure and the roles of its directors and ultimate beneficial owners is ongoing. TSL will not hesitate to take action against individuals where there are proper grounds for doing so.

8. Request for Response

We request written confirmation from Harkness Whitford & Co. by return — and in any event within 7 days of the date of this letter (i.e., by 15 July 2024) — as to whether KMH intends to satisfy the Award voluntarily and make payment of the full sum due within the 14-day demand period.

If no response is received within 7 days, or if KMH indicates that it does not intend to comply with the Award or intends to challenge the Award (whether by way of an application to set aside under Section 67 or Section 68 of the Arbitration Act 1996, an appeal under Section 69, or otherwise), TSL will proceed immediately with enforcement and freezing order applications as outlined above. We note for the record that the time for challenging the Award under the Arbitration Act 1996 is 28 days from the date of the Award, and that no such application has been notified to us or, to our knowledge, filed as of the date of this letter.

All correspondence in response to this letter should be directed to the undersigned at the following address:

Samuel Eklund Partner, Litigation Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom

Email: s.eklund@calderwoodharkness.com

Direct Dial: +44 (0)20 7429 8142

We look forward to receiving your client's response as a matter of urgency.

Yours faithfully,

CALDERWOOD & HARKNESS LLP

By: ________

Samuel Eklund Partner, Litigation

For and on behalf of Thalassa Shipping & Logistics SA

Enc: Certified copy of LCIA Award No. 224718 dated 28 June 2024

cc: Ioanna Christodoulou, General Counsel, Thalassa Shipping & Logistics SA cc: Hannah Brinkley, Calderwood & Harkness LLP

Calderwood & Harkness LLP is a limited liability partnership registered in England and Wales under No. OC 327814. A list of members is open to inspection at the above address. The term "partner" is used to refer to a member of Calderwood & Harkness LLP. Calderwood & Harkness LLP is authorised and regulated by the Solicitors Regulation Authority (SRA No. 512067).

Item	Amount (GBP)
Damages for wrongful early redelivery of M/V Aegean Fortuna	£42,300,000
Outstanding hire and damages for M/V Crimson Horizon	£28,150,000
Restitution of fabricated off-hire deductions for M/V Volga Spirit	£2,740,000
Loss of profit / market differential damages	£16,480,000
Pre-award interest (5.25% per annum simple from dates of breach to date of Award)	£6,780,000
Total Award	£96,450,000
Item	Amount (GBP)
LCIA administrative and tribunal costs allocated 85% to KMH	£3,240,000
TSL's legal costs allocated 85% to KMH	£8,910,000
Total Costs	£12,150,000

CALDERWOOD & HARKNESS LLP Solicitors & International Arbitration Advocates
45 Moorgate London EC2R 6AR United Kingdom
Tel: +44 (0)20 7429 8000
Fax: +44 (0)20 7429 8001
www.calderwoodharkness.com
8 July 2024
SENT BY EMAIL AND FIRST CLASS POST
URGENT
Catherine Whitford Partner, International Arbitration Harkness Whitford & Co. 12 Fetter Lane London EC4A 1JP United Kingdom
Re: LCIA Arbitration No. 224718 — Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd. — Demand for Payment of Final Award
Dear Ms. Whitford,
1. Introduction — Identification of Parties and Engagement
We write on behalf of our client, Thalassa Shipping & Logistics SA ("TSL"), a Société Anonyme organised under the laws of the Hellenic Republic, with its registered address at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece. As you are aware, this firm has acted for TSL throughout the proceedings referred to above and continues to hold full authority to correspond on its behalf in relation to all matters arising out of the Final Award (as defined below).
We understand that your firm, Harkness Whitford & Co. (SRA No. 614823), acts on behalf of Korinthian Maritime Holdings Ltd. ("KMH"), a private limited company incorporated in Cyprus under Registration No. HE 387421, with its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus. We further understand that you continue to hold instructions from KMH in relation to the arbitration and its aftermath. If that understanding is incorrect, we should be grateful if you would inform us immediately and provide details of any replacement solicitors on record for KMH so that this demand may be redirected without delay.
This letter constitutes a formal demand for payment of the Final Award issued in LCIA Arbitration No. 224718, together with all costs allocated to KMH and all interest accruing thereon, as more particularly set out below. The purpose of this letter is to afford KMH a final opportunity to satisfy the Award voluntarily before TSL commences enforcement proceedings in multiple jurisdictions and seeks ancillary relief, including without limitation worldwide freezing orders and vessel arrests.
We ask that you treat this letter with the urgency it warrants and bring its contents to the immediate attention of KMH's directors and officers.
2. Background — The LCIA Arbitration
2.1 The Charter-Party Agreements
The underlying dispute arises out of three time charter-party agreements entered into between TSL (as disponent owner) and KMH (as charterer) between 2019 and 2021, relating to the charter of three dry-bulk carriers within TSL's fleet. The relevant charter-parties are as follows:
(a) A time charter-party dated 15 March 2019 in respect of the vessel M/V *Aegean Fortuna (the "Aegean Fortuna Charter*");
(b) A time charter-party dated 22 January 2020 in respect of the vessel M/V *Crimson Horizon (the "Crimson Horizon Charter*"); and
(c) A time charter-party dated 10 June 2021 in respect of the vessel M/V *Volga Spirit (the "Volga Spirit Charter*"),
(together, the "Charter-Parties").
Each of the Charter-Parties was governed by English law. Each contained an arbitration clause providing for the resolution of disputes by arbitration under the Rules of the London Court of International Arbitration (the "LCIA Rules"), with London designated as the juridical seat of the arbitration. The Charter-Parties were negotiated at arm's length between commercially sophisticated parties engaged in the international dry-bulk shipping trade, and KMH was at all material times represented by experienced legal advisors — including, we believe, your firm — in connection with the negotiation and execution of those agreements.
2.2 The Arbitration Proceedings
Following KMH's breaches of the Charter-Parties (summarised in Section 3 below), TSL filed its Request for Arbitration with the LCIA on 14 November 2022, which was registered under LCIA No. 224718.
The Tribunal was constituted on 8 February 2023 and comprised the following members:
(a) Presiding Arbitrator: Sir Malcolm Fenton-Clarke (appointed by the LCIA Court);
(b) Co-Arbitrator (Claimant-nominated): Professor Athena Drakopoulos; and
(c) Co-Arbitrator (Respondent-nominated): Dr. Henrik Dalmqvist.
The arbitration proceeded through written submissions, disclosure, witness statements, and expert reports in the ordinary course. Both parties were afforded full opportunity to present their respective cases, and KMH participated actively in all stages of the proceedings, represented throughout by your firm and counsel instructed by you.
An evidentiary hearing was held over ten hearing days from 11 to 22 September 2023 at the International Dispute Resolution Centre (IDRC), London. The Tribunal heard testimony from factual witnesses called by both parties, as well as expert evidence on shipping market rates, vessel valuations, and quantum of loss. Both parties filed extensive post-hearing submissions.
Following the close of proceedings, the Tribunal issued its Final Award on 28 June 2024 (the "Award" or the "Final Award"). A certified copy of the Award is enclosed with this letter.
3. The Final Award — Summary of the Tribunal's Findings and Amounts Awarded
3.1 KMH's Repudiatory Breaches
The Tribunal found, unanimously on all material points, that KMH had committed repudiatory breaches of each of the three Charter-Parties. The Tribunal's principal findings regarding liability are summarised as follows:
(a) M/V *Aegean Fortuna* — Wrongful Early Redelivery. KMH wrongfully redelivered the vessel M/V Aegean Fortuna on 18 June 2022, approximately 14 months prior to the earliest contractual redelivery date. The Tribunal found that KMH had no lawful basis for the early redelivery, that the purported grounds advanced by KMH (relating to alleged unseaworthiness) were without foundation, and that the early redelivery constituted a repudiatory breach of the Aegean Fortuna Charter. TSL was thereby deprived of the benefit of 14 months of hire income at contractual rates which were significantly above prevailing market rates at the time of redelivery.
(b) M/V *Crimson Horizon* — Failure to Pay Hire. KMH failed to pay hire on the vessel M/V Crimson Horizon from 1 July 2022 onwards, accumulating arrears of £4,280,000 before TSL exercised its contractual right of withdrawal and withdrew the vessel from KMH's service on 15 September 2022. The Tribunal found that KMH's failure to pay hire was deliberate and not attributable to any legitimate set-off or counterclaim, and that KMH's non-payment constituted a repudiatory breach of the Crimson Horizon Charter entitling TSL to damages for the balance of the charter period.
(c) M/V *Volga Spirit* — Fabricated Off-Hire Deductions. KMH made systematic and fabricated off-hire deductions from hire payments due under the Volga Spirit Charter, totalling approximately £2,740,000 in false deductions. The Tribunal found, based on contemporaneous documentation including vessel tracking data, class survey records, and port state control inspection reports, that the off-hire events claimed by KMH had either not occurred at all or had been grossly exaggerated. The Tribunal characterised KMH's conduct as "a deliberate and calculated scheme to deprive TSL of sums lawfully due under the Charter" (Award, paragraph 412). The Tribunal ordered restitution of the full amount of the fabricated deductions.
3.2 Amounts Awarded
The Tribunal awarded TSL the following sums, as set out in the dispositif of the Award at paragraphs 518 to 526:
At the prevailing exchange rate as of the date of the Award (28 June 2024) of £1 = USD $1.2441, the Total Award represents approximately USD $120,000,000.
3.3 Costs Allocation
In addition to the substantive sums set out above, the Tribunal ordered that costs be allocated as follows, reflecting its conclusion that KMH was the unsuccessful party on substantially all issues and that certain of its defences had been advanced without reasonable basis:
3.4 Total Amount Payable
Accordingly, the total amount currently due and payable by KMH under the Award is:
Award plus Costs: £108,600,000 (one hundred and eight million, six hundred thousand pounds sterling)
This figure is exclusive of post-award interest, which is addressed separately in Section 5 below.
4. Demand for Payment
We hereby make formal demand, on behalf of TSL, that KMH pay the full sum of £108,600,000 (one hundred and eight million, six hundred thousand pounds sterling), together with all accrued post-award interest, within 14 days of the date of this letter, that is to say, on or before 22 July 2024.
Payment shall be made in pounds sterling by electronic wire transfer to TSL's designated account at:
Ionian National Bank SA 22 Stadiou Street Athens 105 64, Greece
Full account details, including SWIFT/BIC codes and the relevant IBAN, will be provided to you promptly upon receipt of written confirmation from Harkness Whitford & Co. that KMH will comply with the Award and intends to make payment. TSL is prepared to provide wire transfer instructions immediately upon receipt of such confirmation in order to facilitate timely settlement.
Time is of the essence with respect to this demand. The 14-day period has been selected to afford KMH a reasonable opportunity to arrange payment while reflecting the urgency of the matter and the fact that the Award has been outstanding since 28 June 2024.
5. Post-Award Interest
We draw your attention to the fact that the Award provides for post-award interest at the rate of 5.25% per annum simple on the unpaid substantive sum of £96,450,000, accruing from 29 June 2024 (the day following the date of the Award) until the date on which payment is made in full.
Post-award interest will continue to accrue on all unpaid sums with each passing day that the Award remains unsatisfied. We note that as at the date of this letter, 10 days of post-award interest have already accrued, and the total interest liability will increase materially with each further day of non-payment.
For the avoidance of doubt, the daily interest accrual on the substantive award sum is calculated as follows:
£96,450,000 × 5.25% ÷ 365 = approximately £13,872.60 per day
Every day that KMH delays payment therefore adds a further sum in excess of £13,800 to its total liability. Over the 14-day demand period alone, additional interest of approximately £194,216 will accrue. TSL will seek recovery of all accrued post-award interest in any enforcement proceedings.
6. Consequences of Non-Payment
We wish to make the position entirely clear: if KMH fails to satisfy the Award in full within the 14-day period specified above (i.e., by 22 July 2024), TSL will, without further notice, take all steps available to it to enforce the Award and protect its rights, including but not limited to the following.
6.1 Enforcement Proceedings
TSL will commence proceedings to enforce the Award in multiple jurisdictions simultaneously, including:
(a) England and Wales. TSL will apply to the Commercial Court in London under Section 66 of the Arbitration Act 1996 for leave to enforce the Award in the same manner as a judgment or order of the Court to the same effect, and will seek entry of the Award as a judgment of the High Court. Once entered as a judgment, TSL will be entitled to avail itself of the full range of domestic enforcement mechanisms available under English law, including third-party debt orders, charging orders, and writs of control.
(b) Multiple foreign jurisdictions under the New York Convention. TSL will concurrently commence recognition and enforcement proceedings under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the "New York Convention") in all jurisdictions where KMH and its subsidiaries, affiliates, and related entities hold assets. These jurisdictions include, but are not limited to:
(i) Cyprus — where KMH is incorporated and where it maintains its registered office, and where a number of KMH's subsidiary holding companies and special purpose vehicles are also incorporated;
(ii) Singapore — where KMH's subsidiary, Korinthian Bulkers (Singapore) Pte. Ltd., is incorporated and operates, and where assets including the vessel M/V Crimson Horizon are held or managed; and
(iii) The United Arab Emirates — where KMH's affiliate, Korinthian DMCC, is registered in the Dubai Multi Commodities Centre and maintains accounts and receivables.
(c) Other jurisdictions. TSL has conducted extensive asset-tracing investigations and has identified assets of KMH and its related entities across a number of further jurisdictions. TSL reserves the right to commence enforcement proceedings in any such additional jurisdiction as it considers appropriate.
In connection with the above, we put you on notice that TSL has already identified substantial assets of KMH and its related entities, including the following:
(i) KMH's Cyprus-incorporated subsidiaries and holding companies, through which KMH holds interests in its fleet and other investments;
(ii) Korinthian Bulkers (Singapore) Pte. Ltd. and its assets, including in particular the vessel M/V Crimson Horizon;
(iii) Korinthian DMCC and its accounts and receivables held in Dubai; and
(iv) Bank accounts held by KMH and its related entities at financial institutions in London and other jurisdictions.
TSL is fully prepared to pursue enforcement in each of these jurisdictions simultaneously and has already instructed or is in the process of instructing local counsel in each relevant jurisdiction to act on a standby basis.
6.2 Worldwide Freezing Order
In addition to enforcement proceedings, TSL will apply without notice to the Commercial Court in London for a worldwide freezing order (formerly known as a Mareva injunction) over KMH's assets, up to the full amount of the Award plus Costs and all accruing interest — currently in excess of £108,600,000 and rising daily.
We put you and your client on notice that TSL has obtained evidence suggesting that KMH has been taking active steps to dissipate and restructure its assets in anticipation of enforcement proceedings. This evidence, which includes corporate restructuring filings, inter-company transfers, and changes to beneficial ownership arrangements, will be placed before the Court in full in support of TSL's application for freezing relief. TSL is confident that the evidence establishes a real risk of dissipation sufficient to satisfy the requirements for the grant of such an order.
TSL further reserves the right to seek ancillary disclosure orders requiring KMH to disclose, on affidavit, the nature, value, and location of all of its assets worldwide, whether held in its own name or in the name of nominees, subsidiaries, affiliates, or any other related party.
We remind you that any failure by KMH to comply with the terms of a freezing order, if granted, would constitute a contempt of court carrying the most serious consequences, including committal to prison for individual officers and directors.
6.3 Vessel Arrest
TSL will pursue the arrest of vessels owned by KMH and its subsidiary special purpose vehicles in any jurisdiction where such vessels may be found. Without limiting the generality of the foregoing, TSL will seek the arrest of the following vessels:
(a) M/V *Aegean Fortuna* (IMO No. 9784521);
(b) M/V *Crimson Horizon* (IMO No. 9801334); and
(c) M/V *Volga Spirit* (IMO No. 9756892),
as well as any other vessels beneficially owned by KMH or any entity within the Korinthian group, whether directly or through one-ship company structures, in any port or territorial waters worldwide. TSL's advisors are monitoring the current positions and trading patterns of these vessels and are prepared to move for arrest at short notice.
The arrest of trading vessels, as you will appreciate, carries significant commercial consequences for a shipowner, including the interruption of ongoing chartering commitments, demurrage liabilities, reputational damage with counterparties and P&I clubs, and the costs of providing security for release.
6.4 Costs Warning
We wish to emphasise in the strongest terms that KMH will be liable for all costs of enforcement proceedings, including but not limited to:
(a) TSL's legal costs in the English proceedings, assessed on an indemnity basis;
(b) All disbursements incurred in connection with enforcement, including court fees, process server fees, translation and notarisation costs, and ancillary expenses;
(c) Local counsel fees in each enforcement jurisdiction, including Cyprus, Singapore, the United Arab Emirates, and any other jurisdiction where proceedings are commenced;
(d) Expert fees, including the fees of asset-tracing specialists and forensic accountants; and
(e) Any other costs reasonably incurred by TSL in enforcing its rights under the Award.
These additional costs will be substantial and will significantly increase KMH's total liability, potentially by several million pounds. TSL will pursue recovery of all such costs from KMH and will seek the most favourable costs orders available in each jurisdiction.
It is plainly in KMH's commercial interests to satisfy the Award voluntarily and thereby avoid the very significant additional financial exposure that multi-jurisdictional enforcement would entail. We urge you to advise your client accordingly.
7. Reservation of Rights
Nothing in this letter shall be construed as, or shall operate as, a waiver of any of TSL's rights, remedies, or entitlements under the Award, at law, in equity, or otherwise. This letter is written entirely without prejudice to TSL's rights, all of which are expressly reserved in full.
Without limiting the generality of the foregoing, TSL expressly reserves:
(a) all rights and remedies available to it under the Award, including the right to enforce the Award in any jurisdiction;
(b) all rights and remedies available to it at common law and in equity, including claims in damages, debt, and restitution;
(c) all rights to seek interim and protective measures in any court of competent jurisdiction; and
(d) the right to pursue any directors and beneficial owners of KMH personally where the law of the relevant jurisdiction permits, having particular regard to the corporate structure through which KMH operates and the potential for piercing or lifting the corporate veil where the circumstances justify such relief.
TSL's investigation of KMH's corporate structure and the roles of its directors and ultimate beneficial owners is ongoing. TSL will not hesitate to take action against individuals where there are proper grounds for doing so.
8. Request for Response
We request written confirmation from Harkness Whitford & Co. by return — and in any event within 7 days of the date of this letter (i.e., by 15 July 2024) — as to whether KMH intends to satisfy the Award voluntarily and make payment of the full sum due within the 14-day demand period.
If no response is received within 7 days, or if KMH indicates that it does not intend to comply with the Award or intends to challenge the Award (whether by way of an application to set aside under Section 67 or Section 68 of the Arbitration Act 1996, an appeal under Section 69, or otherwise), TSL will proceed immediately with enforcement and freezing order applications as outlined above. We note for the record that the time for challenging the Award under the Arbitration Act 1996 is 28 days from the date of the Award, and that no such application has been notified to us or, to our knowledge, filed as of the date of this letter.
All correspondence in response to this letter should be directed to the undersigned at the following address:
Samuel Eklund Partner, Litigation Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom
Email: s.eklund@calderwoodharkness.com
Direct Dial: +44 (0)20 7429 8142
We look forward to receiving your client's response as a matter of urgency.
Yours faithfully,
CALDERWOOD & HARKNESS LLP
By: ________
Samuel Eklund Partner, Litigation
For and on behalf of Thalassa Shipping & Logistics SA
Enc: Certified copy of LCIA Award No. 224718 dated 28 June 2024
cc: Ioanna Christodoulou, General Counsel, Thalassa Shipping & Logistics SA cc: Hannah Brinkley, Calderwood & Harkness LLP
Calderwood & Harkness LLP is a limited liability partnership registered in England and Wales under No. OC 327814. A list of members is open to inspection at the above address. The term "partner" is used to refer to a member of Calderwood & Harkness LLP. Calderwood & Harkness LLP is authorised and regulated by the Solicitors Regulation Authority (SRA No. 512067).
Item | Amount (GBP)
Damages for wrongful early redelivery of M/V Aegean Fortuna | £42,300,000
Outstanding hire and damages for M/V Crimson Horizon | £28,150,000
Restitution of fabricated off-hire deductions for M/V Volga Spirit | £2,740,000
Loss of profit / market differential damages | £16,480,000
Pre-award interest (5.25% per annum simple from dates of breach to date of Award) | £6,780,000
Total Award | £96,450,000
Item | Amount (GBP)
LCIA administrative and tribunal costs allocated 85% to KMH | £3,240,000
TSL's legal costs allocated 85% to KMH | £8,910,000
Total Costs | £12,150,000

CALDERWOOD & HARKNESS LLP Solicitors & International Arbitration Advocates

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