CALDERWOOD & HARKNESS LLP Solicitors & International Arbitration Counsel 45 Moorgate London EC2R 6AR United Kingdom
Tel: +44 (0)20 7493 8200
Fax: +44 (0)20 7493 8201
DX 42615 Moorgate
www.calderwoodharkness.com
5 February 2025
BY EMAIL AND FIRST CLASS POST
Catherine Whitford Partner, International Arbitration Harkness Whitford & Co. SRA No.: 614823 12 Fetter Lane London EC4A 1JP United Kingdom
Re: Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd. — Enforcement of LCIA Award No. 224718; Commercial Court Claim No. CL-2024-000487
Our ref: SE/HB/PG/TSL-Enforcement Your ref: CW/JH/KMH-LCIA
Marked: OPEN (not without prejudice)
Dear Ms Whitford,
We write on behalf of our client, Thalassa Shipping & Logistics SA ("TSL"), in connection with the above-referenced matter, and in particular to acknowledge receipt of a voluntary payment made by your client, Korinthian Maritime Holdings Ltd. ("KMH"), and to set out TSL's position regarding the outstanding balance remaining due and owing under LCIA Award No. 224718 and the costs orders made in connection therewith.
This letter is marked OPEN and is not sent on a without prejudice basis. Nothing in this letter is intended to, and nothing shall, constitute or be construed as a waiver or abandonment of any of TSL's rights, remedies, claims, or entitlements, whether under the Award, the orders of the Commercial Court, or otherwise, all of which are expressly reserved in full.
1. Acknowledgement of Voluntary Payment
We confirm that, on 3 February 2025, TSL received a payment in the sum of £7,400,000 (seven million four hundred thousand pounds sterling) from Korinthian Maritime Holdings Ltd. (Cyprus Registration No. HE 387421). The payment was received by wire transfer into the designated client account of Thalassa Shipping & Logistics SA held at Ionian National Bank SA, 22 Stadiou Street, Athens 105 64, Greece, in accordance with the payment instructions previously communicated to Harkness Whitford & Co. by our letter dated 17 January 2025.
We confirm that this payment has been applied against the outstanding sums due from KMH under the Final Award in LCIA Arbitration No. 224718, dated 28 June 2024 (the "Award"), and the associated costs orders, in the manner set out in greater detail in sections 3 and 4 below.
TSL acknowledges receipt of this voluntary payment. However, for the avoidance of any doubt, the acceptance of this payment does not constitute acceptance of the sum as satisfaction in full or in part of any particular head of the Award, nor does it operate as a waiver or release of any of TSL's continuing rights to recover the full outstanding balance, together with accruing post-award interest and enforcement costs.
2. Summary of the Award and Costs
For the purposes of maintaining a clear and complete record, we set out below a summary of the principal components of the Final Award and associated costs orders.
2.1 The Final Award
The Final Award was issued on 28 June 2024 by the Tribunal constituted under the auspices of the London Court of International Arbitration, comprising:
• Presiding Arbitrator: Sir Malcolm Fenton-Clarke
• Co-Arbitrator: Professor Athena Drakopoulos
• Co-Arbitrator: Dr. Henrik Dalmqvist
The Tribunal found in favour of TSL on all principal heads of claim and awarded TSL the following sums:
The Tribunal further ordered that post-award interest shall accrue at the rate of 5.25% per annum simple on the principal sum of £96,450,000.00 from 29 June 2024 until the date of payment in full.
2.2 Costs. The Tribunal allocated 85% of the costs of the arbitration to KMH, resulting in the following costs liability on KMH's part:
2.3 Grand Total Under the Award
The aggregate sum due from KMH to TSL under the Award and the Tribunal's costs determination is accordingly:
Total Award plus Costs: £108,600,000.00
This figure is exclusive of post-award interest, which, as noted above, continues to accrue at the rate of 5.25% per annum simple on the sum of £96,450,000.00 from 29 June 2024.
3. Reconciliation of Recoveries to Date
Since the date of the Award, TSL has pursued enforcement proceedings across multiple jurisdictions. Set out below is a complete schedule of all recoveries made against KMH and its subsidiaries and affiliates to date, together with the voluntary payment acknowledged in section 1 above.
The foreign currency conversions set out above reflect the approximate sterling equivalents at the dates of receipt and are consistent with the rates applied in the relevant enforcement proceedings.
Total recoveries of £96,590,000.00 represent approximately 88.94% of the Award plus Costs (excluding post-award interest). While significant progress has been made in enforcement, a substantial balance remains outstanding, as detailed below.
4. Outstanding Balance
4.1 Post-Award Interest Calculation
As noted above, the Award provides for post-award interest at the rate of 5.25% per annum simple on the principal sum of £96,450,000.00, running from 29 June 2024 until the date of payment in full.
For the purposes of this letter, we have calculated the estimated accrued post-award interest through 15 March 2025, being a period of 260 days from the commencement date of 29 June 2024. The calculation is as follows:
£96,450,000.00 × 0.0525 × (260 ÷ 365) = £3,607,726.03
We emphasise that this is an estimate for illustrative purposes only. The precise amount of post-award interest will depend upon the date(s) of actual payment and the proper allocation of recoveries already received, including any argument as to whether partial payments should be credited first against interest or principal. TSL reserves its position on all such matters.
4.2 Grand Total Owed (Estimated Through 15 March 2025)
On the basis of the foregoing, the estimated grand total owed by KMH to TSL as at 15 March 2025 is:
We draw your client's attention to the fact that this figure continues to increase on a daily basis as post-award interest accrues on unpaid principal sums. The daily rate of interest on the full principal sum of £96,450,000.00 is approximately £13,875.68 per day. To the extent that partial recoveries have reduced the principal balance on which interest accrues, the precise daily accrual will be adjusted accordingly; however, for present purposes, and in the absence of agreement on the allocation of partial payments, TSL calculates the outstanding balance on the basis set out above.
We further note that the outstanding balance of approximately £15,617,726.03 includes both the remaining portion of the Award plus Costs and accrued post-award interest. No credit has yet been applied in respect of the costs of enforcement proceedings, to which TSL is separately entitled and which TSL reserves the right to recover in full. Those enforcement costs are substantial, having been incurred across five jurisdictions, and will be the subject of separate assessment and/or agreement in due course.
5. Worldwide Freezing Order — Continued Effect
We remind you that the Worldwide Freezing Order (the "WFO") granted by Mr. Justice Ashworth on 16 July 2024 in Commercial Court Claim No. CL-2024-000487, as continued with modifications on the return date of 30 July 2024, remains in full force and effect.
The WFO continues to restrain KMH from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets, whether located within the jurisdiction of England and Wales or elsewhere in the world, up to the maximum sum specified in the order, subject to the permitted exceptions and provisos set out therein.
TSL acknowledges that, in light of the recoveries set out in section 3 above, the maximum restrained sum under the WFO may now exceed the outstanding balance. TSL intends, in due course, to apply to the Commercial Court to vary the WFO to reduce the maximum restrained sum to reflect amounts recovered. However, until such time as any such variation is made, the WFO stands as granted and continues to bind KMH and all persons notified of its terms. KMH must continue to comply with the WFO in all respects.
In particular, we remind your client of its continuing obligation to comply with the asset disclosure provisions of the WFO. Paragraph 9 of the order, as continued on 30 July 2024, requires KMH to inform TSL's solicitors in writing of all its assets worldwide, giving the value, location, and details of all such assets. To the extent that there has been any change in KMH's asset position since its last disclosure, KMH is required to provide an updated disclosure forthwith. We note that the duty of disclosure is a continuing one and that any failure to comply with the disclosure provisions of the WFO may constitute a contempt of court.
6. Reservation of Rights
TSL expressly reserves all of its rights, remedies, claims, and entitlements in respect of the outstanding balance of approximately £15,617,726.03 (as estimated at the date of 15 March 2025, and continuing to accrue thereafter by reason of post-award interest), including but not limited to the following:
(a) TSL intends to continue enforcement proceedings in all available jurisdictions to recover the remaining balance due under the Award, plus Costs, plus post-award interest, in full.
(b) In particular, TSL is actively pursuing the following enforcement measures:
(i) Enforcement against M/V *Volga Spirit* (IMO 9756892, Panamax Bulk Carrier, 76,400 DWT, Cyprus flag), owned by Dnepr Shipholding Inc. (BVI Company No. 2014876), a subsidiary of KMH. The vessel was last reported at Fujairah anchorage. TSL has instructed local counsel in the relevant jurisdictions and reserves the right to seek the arrest and judicial sale of the vessel as and when appropriate.
(ii) Attachment of receivables owed to KMH by sub-charterers. TSL has identified receivables estimated at approximately £4,200,000.00 owed to KMH and/or its subsidiaries by various sub-charterers under charterparties currently in force. TSL intends to seek attachment orders in respect of those receivables in the appropriate jurisdictions.
(c) TSL reserves the right to seek further enforcement orders, attachment orders, garnishee orders, charging orders, and arrest warrants in any jurisdiction in which KMH or its subsidiaries or affiliates hold assets or are owed debts, as TSL considers necessary or expedient for the recovery of the sums due.
(d) TSL reserves the right to seek recovery of the costs of all enforcement proceedings on an indemnity basis. In this regard, we note the costs order made by Mr. Justice Ashworth on 11 October 2024 upon the dismissal of KMH's application to set aside the Award under sections 68 and 69 of the Arbitration Act 1996, pursuant to which KMH was ordered to pay TSL's costs of that application on an indemnity basis. TSL will contend that the same approach to costs is appropriate in respect of all enforcement proceedings, having regard to the conduct of KMH in failing to honour the Award and in seeking to dissipate assets in order to frustrate enforcement.
(e) Nothing in this letter, including the acknowledgement of the voluntary payment referred to in section 1, shall constitute or be construed as a waiver, release, or abandonment of any of TSL's rights. All rights are reserved in full.
7. Request for Confirmation
In light of the foregoing, we request that Harkness Whitford & Co. confirm, on behalf of KMH, the following matters by no later than 19 February 2025:
(a) Whether KMH intends to make any further voluntary payments in respect of the outstanding balance, and if so, the amount and proposed timing of any such payment(s).
(b) Whether KMH's asset disclosure provided pursuant to the WFO has been updated to reflect any changes in its asset position since the last disclosure dated 6 December 2024, and if not, when such updated disclosure will be provided.
(c) KMH's current position regarding M/V Volga Spirit (IMO 9756892), including the current location of the vessel, its trading status, and the identity and terms of any charterparty or other employment to which the vessel is currently subject.
(d) KMH's current position regarding the sub-charterer receivables identified above, estimated at approximately £4,200,000.00, including the identities of the relevant sub-charterers, the amounts outstanding, and the payment terms applicable thereto.
We trust that your client will cooperate in providing this information promptly. We remind you that the obligation of candour and cooperation owed under the WFO is not diminished by the making of voluntary payments, and that any failure to provide full and frank disclosure may be drawn to the attention of the Commercial Court.
8. Contact Details
All correspondence and communications regarding this matter should be directed in the first instance to:
Hannah Brinkley Lead Associate Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom Tel: +44 (0)20 7493 8217
Email: h.brinkley@calderwoodharkness.com
Copies of all substantive correspondence should also be sent to:
Samuel Eklund Partner (Responsible Partner — Enforcement) Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom Tel: +44 (0)20 7493 8204
Email: s.eklund@calderwoodharkness.com
We look forward to receiving your client's response to the matters raised in section 7 above by the date specified. In the meantime, we confirm that TSL will continue to pursue enforcement of the Award with all appropriate vigour.
Yours sincerely,
CALDERWOOD & HARKNESS LLP
________________________________________
Hannah Brinkley Lead Associate Calderwood & Harkness LLP For and on behalf of Thalassa Shipping & Logistics SA
cc (by email):
Samuel Eklund, Partner, Calderwood & Harkness LLP Linda Osei, Partner, Calderwood & Harkness LLP Ioanna Christodoulou, General Counsel, Thalassa Shipping & Logistics SA Nikolaos Papadimitriou, Chairman & CEO, Thalassa Shipping & Logistics SA (for information only)
Enclosures: None. This letter is self-contained. It references prior correspondence and court orders which have been previously served upon Harkness Whitford & Co. and which are not enclosed again herewith.
Calderwood & Harkness LLP is a limited liability partnership registered in England & Wales under number OC 318274. A list of members is available for inspection at the above address. Authorised and regulated by the Solicitors Regulation Authority (SRA No. 502196). This letter and any attachments are confidential and may be subject to legal professional privilege. If you have received this letter in error, please notify the sender immediately and delete all copies.
| Head of Claim | Amount (£) | ||||
| Damages for wrongful early redelivery of M/V Aegean Fortuna | 42,300,000.00 | ||||
| Outstanding hire and damages in respect of M/V Crimson Horizon | 28,150,000.00 | ||||
| Restitution of fabricated off-hire deductions in respect of M/V Volga Spirit | 2,740,000.00 | ||||
| Loss of profit / market differential damages | 16,480,000.00 | ||||
| Pre-award interest (5.25% per annum simple) | 6,780,000.00 | ||||
| Total Award | 96,450,000.00 | ||||
| Cost Item | Amount (£) | ||||
| LCIA administrative costs and Tribunal fees and expenses | 3,240,000.00 | ||||
| TSL's legal costs (including counsel's fees, expert fees, and disbursements) | 8,910,000.00 | ||||
| Total Costs | 12,150,000.00 | ||||
| No. | Jurisdiction | Source / Mechanism | Gross Amount Recovered | Sterling Equivalent (£) | Date(s) of Recovery |
| 1 | England & Wales | Third-party debt order against Meridian Trust Bank Ltd. in respect of accounts held by KMH | £18,720,000.00 | 18,720,000.00 | 3 September 2024 |
| 2 | Cyprus | Forced sale of Oceangate Ventures Ltd. (HE 401293) shares and seizure of KMH Cyprus bank accounts | £22,350,000.00 | 22,350,000.00 | 22 October 2024 – 8 November 2024 |
| 3 | Singapore | Garnishee order absolute against Pinnacle Bank (Singapore) Ltd. in respect of accounts of Korinthian Bulkers (Singapore) Pte. Ltd. | SGD 31,200,000.00 | 18,450,000.00 (approx.) | 18 October 2024 |
| 4 | Singapore | Judicial sale of M/V Crimson Horizon (IMO 9801334) | USD 22,800,000.00 | 18,330,000.00 (approx.) | 2 December 2024 |
| 5 | UAE | Execution against Korinthian DMCC accounts and receivables at Emirates Gulf Commercial Bank PJSC | AED 53,400,000.00 | 11,340,000.00 (approx.) | 10 December 2024 – 14 January 2025 |
| 6 | Voluntary Payment | Payment by KMH into TSL designated client account | £7,400,000.00 | 7,400,000.00 | 3 February 2025 |
| Total Recovered to Date | £96,590,000.00 | ||||
| Component | Amount (£) | ||||
| Total Award plus Costs | 108,600,000.00 | ||||
| Estimated accrued post-award interest (through 15 March 2025) | 3,607,726.03 | ||||
| Grand Total Owed | 112,207,726.03 | ||||
| Less: Total recoveries to date | (96,590,000.00) | ||||
| Outstanding Balance | approximately £15,617,726.03 |