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PRIVILEGED AND CONFIDENTIAL — SUBJECT TO LEGAL PROFESSIONAL PRIVILEGE

CALDERWOOD & HARKNESS LLP Solicitors & International Arbitration Counsel 45 Moorgate, London EC2R 6AR, United Kingdom

Tel: +44 (0)20 7946 0100

Fax: +44 (0)20 7946 0199

DX: 42617 Moorgate www.calderwoodharkness.com

14 October 2024

By email and courier

Ms. Ioanna Christodoulou General Counsel Thalassa Shipping & Logistics SA 14 Akti Miaouli, 4th Floor Piraeus 185 35 Greece

Matter: Enforcement of LCIA Award No. 224718 — Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd. / Commercial Court Claim No. CL-2024-000487

Dear Ioanna,

1. Purpose and Introduction

We write to provide you with a comprehensive update confirming the successful outcomes achieved to date in the enforcement proceedings brought in England and Wales arising from LCIA Award No. 224718 dated 28 June 2024 (the "Award"), rendered in favour of Thalassa Shipping & Logistics SA ("TSL" or the "Company") and against Korinthian Maritime Holdings Ltd. (registered in Cyprus under company number HE 387421, with its registered office in Nicosia, Cyprus) ("KMH").

As you are aware, the Award was rendered by the tribunal chaired by Sir Malcolm Fenton-Clarke (with Professor Athena Drakopoulos and Dr. Henrik Dalmqvist as co-arbitrators) in the total amount of £96,450,000 in damages and interest, together with costs in the amount of £12,150,000, giving a grand total of £108,600,000. The Award arose from KMH's breaches of three time charter-parties relating to the vessels M/V Aegean Fortuna, M/V Crimson Horizon, and M/V Volga Spirit, and was the culmination of proceedings conducted under the auspices of the London Court of International Arbitration ("LCIA") pursuant to the LCIA Rules 2020.

The purpose of this letter is to summarise all key milestones reached in the English enforcement proceedings, to report on the current recovery position, and to set out the status of parallel enforcement actions being pursued in Cyprus, Singapore, and the United Arab Emirates. We also address the dismissal of KMH's application to set aside the Award, which was heard and determined by Mr. Justice Ashworth on 11 October 2024, and which represents a significant and definitive victory for TSL.

This letter has been prepared by me, Samuel Eklund (Responsible Partner), together with the matter team of Linda Osei (Billing Partner), Hannah Brinkley (Lead Associate), and Patrick Gallagher (Working Associate). We remain at your disposal to discuss any aspect of this update and the wider enforcement strategy at your convenience.

2. Permission to Enforce — Section 66, Arbitration Act 1996

On 15 July 2024, we filed an application notice on behalf of TSL in the Commercial Court of the High Court of Justice of England and Wales, under Claim No. CL-2024-000487, seeking permission to enforce LCIA Award No. 224718 as a judgment of the court pursuant to section 66 of the Arbitration Act 1996 (the "1996 Act"). Section 66 provides that an award made by a tribunal pursuant to an arbitration agreement may, by leave of the court, be enforced in the same manner as a judgment or order of the court to the same effect. This is the standard and well-established mechanism for the enforcement of London-seated arbitral awards in England and Wales.

The application was supported by the first witness statement of Nikolaos Papadimitriou, Chairman and Chief Executive Officer of TSL, dated 14 July 2024. Mr. Papadimitriou's statement set out in detail the background to the charter-party disputes involving the three vessels (M/V Aegean Fortuna, M/V Crimson Horizon, and M/V Volga Spirit), the commencement and conduct of the arbitration proceedings before the LCIA, the procedural history of the reference, and the substance and findings of the Award. The witness statement exhibited certified copies of the executed charter-parties, the relevant LCIA correspondence, the procedural orders issued by the tribunal, and the Award itself.

In accordance with the usual practice under CPR Part 62 and Practice Direction 62, the application was made without notice to KMH in the first instance, and was considered by the court on paper.

Permission to enforce was granted by Mr. Justice Ashworth on 2 August 2024. The order of Mr. Justice Ashworth provides that the Award is enforceable as a judgment of the Commercial Court for the full principal sum of £96,450,000 together with costs of £12,150,000, and that TSL has liberty to enter judgment in those terms. KMH was given the requisite period under CPR Part 62.18 within which to apply to set aside the order granting permission to enforce, but any such challenge was subsumed within KMH's broader set-aside application under sections 68 and 69 of the 1996 Act, which is addressed in Section 5 of this letter below.

We note that KMH has been represented throughout the English proceedings by Harkness Whitford & Co. (12 Fetter Lane, London EC4A 1JP; SRA Registration No. 614823), with Catherine Whitford acting as lead partner on behalf of KMH. We have maintained professional correspondence with Harkness Whitford throughout and all relevant orders have been served on that firm in accordance with the court's directions.

The effect of the order of 2 August 2024 is that TSL now holds an English court judgment for the full amount of the Award and costs, and the full range of execution mechanisms available under English procedural law are available to enforce that judgment. This formed the foundation upon which we have pursued the various enforcement and recovery steps described below.

3. Worldwide Freezing Order

3.1 The Without-Notice Application

Contemporaneously with the filing of the section 66 application, on 15 July 2024 we made an application on behalf of TSL for a worldwide freezing order ("WFO") restraining KMH from removing from England and Wales, or in any way disposing of, dealing with, or diminishing the value of, any of its assets worldwide, whether held in KMH's own name or by any nominee or agent on its behalf.

The application was made without notice to KMH, in accordance with the principles established in Fourie v. Le Roux [2007] UKHL 1 and the standard form Commercial Court freezing order. It was supported by detailed affidavit evidence demonstrating both a good arguable case on the merits (being, in this instance, the Award itself, which is prima facie conclusive of the underlying dispute) and a real risk of dissipation of KMH's assets.

3.2 Grant of the WFO

On 16 July 2024, Mr. Justice Ashworth granted the WFO on an ex parte basis, restraining KMH from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets worldwide up to a maximum value of £108,600,000 (being the full amount of the Award together with the costs allocated to KMH).

The WFO was granted in the standard form of the Commercial Court, and included the following key ancillary provisions:

(a) Asset disclosure obligations — KMH was required, within seven (7) days of service of the order, to provide full disclosure of all assets worldwide exceeding £25,000 in value, whether held in KMH's own name or by any nominee, agent, or controlled entity, including but not limited to real property, vessels, shares, bank accounts, receivables, and any interest in any corporate entity;

(b) Passport surrender provisions — in respect of any individual respondent (not applicable here, but included as a standard term);

(c) Third-party notification provisions — authorising TSL to serve the WFO on banks, financial institutions, and other third parties holding assets of or on behalf of KMH; and

(d) Penal notice — attaching to any breach of the terms of the WFO, with the consequence that KMH and any officer or director responsible for a breach may be held in contempt of court and liable to imprisonment, fine, or sequestration of assets.

3.3 Service and the Return Date Hearing

The WFO was served on KMH's solicitors, Harkness Whitford & Co., by email and DX on 17 July 2024, together with the supporting evidence and the application notice. Notice was also given to the principal banks and financial institutions identified through our asset tracing work as holding accounts in the name of KMH or its subsidiaries.

The return date hearing took place on 30 July 2024 before Mr. Justice Ashworth. At that hearing, KMH (through Catherine Whitford of Harkness Whitford & Co.) did not seek discharge of the WFO but applied for certain modifications to the terms of the order, principally in relation to the scope of the asset disclosure obligations and KMH's ordinary course of business expenditure. Having heard argument from both sides, Mr. Justice Ashworth continued the WFO with limited modifications, including a modest increase to KMH's permitted ordinary living and business expenditure allowance and a clarification of the disclosure timetable. The core injunctive relief remained in full force.

3.4 Evidence of Risk of Dissipation

The application for the WFO was supported by compelling evidence of a real risk of dissipation, drawing in particular on the asset tracing and forensic accounting work carried out by Hartwell Pemberton LLP, forensic accountants (25 Old Broad Street, London EC2N 1HN), under the direction of Rebecca Saunders (Partner) and Mark Huxley (Director). Hartwell Pemberton's preliminary report, dated 12 July 2024, identified a series of concerning post-award asset transfers and corporate restructuring steps undertaken by KMH and entities controlled by Andrei Volkov, the ultimate beneficial owner of the KMH group. These included:

(a) the transfer of approximately US$14.5 million from KMH's principal operating account at Emirates Gulf Commercial Bank PJSC in Dubai to a newly incorporated entity in the British Virgin Islands within days of the Award being rendered;

(b) the interposition of a new holding company, Dnepr Capital Advisors Ltd. (BVI Company No. 2047891), between KMH and certain vessel-owning subsidiaries, with the apparent purpose of putting assets beyond the reach of TSL's enforcement;

(c) the purported sale of M/V Volga Spirit to Dnepr Shipholding Inc. (BVI Company No. 2014876), a connected entity, at what appeared to be a significant undervalue based on comparable vessel transactions; and

(d) the resignation of KMH's sole director, Mr. Volkov, and his replacement with a nominee director based in Ras Al Khaimah, in what appeared to be an attempt to obscure beneficial ownership and frustrate enforcement.

These matters were set out in the witness statement of Rebecca Saunders and formed a critical part of the evidence before Mr. Justice Ashworth in support of the WFO.

3.5 Current Status

The WFO remains in full force and effect pending further order of the court. No application for its discharge has been made by KMH, and the order continues to provide valuable security for the remaining outstanding balance of the Award and costs. We continue to monitor compliance with the WFO and the asset disclosure obligations, and we will not hesitate to bring contempt proceedings in the event of any breach.

4. Third-Party Debt Order Against Meridian Trust Bank Ltd.

4.1 Interim Order

On 5 August 2024, we filed an application on behalf of TSL for an interim third-party debt order under CPR Part 72 against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA) in respect of all sums standing to the credit of KMH in accounts held at that bank.

The application was supported by a witness statement of Hannah Brinkley of this firm, dated 4 August 2024, which attested to the account information derived from two sources: first, the forensic asset tracing conducted by Hartwell Pemberton LLP, which had identified KMH as maintaining a significant sterling-denominated operating account and a US dollar-denominated deposit account at Meridian Trust Bank; and second, the asset disclosure provided by KMH pursuant to the ancillary disclosure provisions of the WFO.

The interim third-party debt order was granted by the court on 5 August 2024, with the immediate effect of freezing all sums standing to KMH's credit at Meridian Trust Bank Ltd. pending the hearing of the application for a final order.

4.2 Final Order and Recovery

The application for a final third-party debt order was heard on 3 September 2024. KMH, through Harkness Whitford & Co., did not attend the hearing and filed no evidence in opposition. Meridian Trust Bank Ltd. appeared through counsel and confirmed the balances held in the relevant accounts. No other person claimed to be entitled to the funds or to have a prior charge or interest.

The final third-party debt order was made on 3 September 2024, directing Meridian Trust Bank Ltd. to pay the sum standing to KMH's credit directly to TSL in partial satisfaction of the judgment. The total amount garnished and paid over to TSL pursuant to the order was:

£18,720,000

These funds were received into TSL's designated recovery account at Ionian National Bank SA (22 Stadiou Street, Athens 105 64, Greece) on 10 September 2024, and have been confirmed by Elena Stavridis as having been received in full and reconciled against the outstanding judgment debt.

This recovery of £18,720,000 represents the first substantial recovery in the enforcement campaign, and demonstrates the effectiveness of the combined strategy of obtaining a WFO (which compelled asset disclosure) followed by targeted third-party debt proceedings against identified account-holding institutions.

A sealed copy of the final third-party debt order dated 3 September 2024 is enclosed with this letter for your records.

5. Dismissal of KMH's Set-Aside Application (Sections 68 and 69, Arbitration Act 1996)

5.1 KMH's Application

On 19 August 2024, KMH filed an application seeking to set aside LCIA Award No. 224718 under section 68 (serious irregularity) and section 69 (appeal on a point of law) of the Arbitration Act 1996. The application was filed by Harkness Whitford & Co. on instructions from Richard Harkness (Senior Partner) and James Thornbury (Associate), and was supported by a witness statement of Mr. Volkov and a skeleton argument settling KMH's grounds of challenge.

KMH's application contended, in summary, that:

(a) the tribunal had committed a serious irregularity within the meaning of section 68(2)(a) by failing to comply with its general duty under section 33 of the 1996 Act, in that it had allegedly refused to admit certain late documentary evidence tendered by KMH during the evidentiary hearing and had thereby denied KMH a reasonable opportunity to present its case;

(b) the tribunal had committed a further serious irregularity under section 68(2)(b) by exceeding its jurisdiction in awarding loss of bargain damages in respect of the M/V Crimson Horizon charter-party, on the basis that the claim as pleaded did not encompass forward-looking damages of the type awarded;

(c) on the section 69 ground, KMH alleged that the tribunal had erred in its application of the principles of anticipatory breach and the duty to mitigate under English law, and that the tribunal's construction of the off-hire clause in the M/V Volga Spirit charter-party was wrong as a matter of law.

5.2 TSL's Opposition

Calderwood & Harkness filed a comprehensive skeleton argument on behalf of TSL opposing the set-aside application in its entirety. Our principal submissions were as follows:

(a) Section 68 — general duty: The tribunal, presided over by Sir Malcolm Fenton-Clarke, with co-arbitrators Professor Athena Drakopoulos and Dr. Henrik Dalmqvist, properly exercised its case management discretion in declining to admit documentary evidence that was tendered by KMH well outside the timetable established by Procedural Order No. 4 (dated 15 June 2023). The 10-day evidentiary hearing, held from 11 to 22 September 2023 at the International Dispute Resolution Centre ("IDRC"), 70 Fleet Street, London, was conducted in full accordance with the principles of procedural fairness, and KMH had been given every reasonable opportunity to present its case, including through the examination and cross-examination of factual and expert witnesses.

(b) Section 68 — excess of jurisdiction: The tribunal's award of loss of bargain damages in respect of the M/V Crimson Horizon was squarely within the scope of the claims as pleaded in TSL's Statement of Case and as refined in TSL's Amended Statement of Case dated 2 May 2023. KMH's jurisdictional objection was, in substance, a complaint about the tribunal's assessment of quantum, which does not engage section 68.

(c) Section 69 — appeal on point of law: KMH's application for permission to appeal on a point of law failed at the threshold, in that the questions of law identified by KMH did not meet the stringent requirements of section 69(3) of the 1996 Act. Specifically, the questions raised were not questions of general public importance, and the decision of the tribunal on those questions was not obviously wrong. The tribunal's application of the principles of anticipatory breach and its construction of the off-hire clause were both well within the range of permissible interpretations open to it on the evidence and the authorities.

(d) Disguised appeal on the merits: Taken as a whole, KMH's challenge constituted a disguised appeal on the merits of the Award, dressed up as a challenge under sections 68 and 69. The well-established jurisprudence, including Lesotho Highlands Development Authority v. Impregilo SpA [2005] UKHL 43 and RAV Bahamas Ltd v. Therapy Beach Club Inc [2021] UKPC 8, makes clear that the English courts will not entertain such challenges, and that the threshold for a successful set-aside is deliberately and properly set at a very high level.

5.3 Internal Risk Assessment

We should note, for completeness, that our internal risk assessment, prepared in consultation with leading counsel and circulated to you on 27 August 2024, assessed the probability of a successful set-aside at less than 10%. KMH's grounds were, in our assessment, devoid of merit and appeared to be motivated primarily by a desire to delay enforcement and to exert commercial pressure on TSL. The outcome of the hearing vindicated that assessment.

5.4 The Hearing and Judgment

The hearing of KMH's set-aside application took place on 11 October 2024 before Mr. Justice Ashworth in the Commercial Court. Both parties were represented by leading and junior counsel. Mr. Justice Ashworth heard argument over the course of a full day and delivered an ex tempore judgment at the conclusion of the hearing.

Mr. Justice Ashworth dismissed KMH's application in its entirety. In his judgment, Mr. Justice Ashworth made the following observations, among others:

(a) The tribunal's case management decision in relation to the late evidence was well within its discretion and could not conceivably be characterised as a serious irregularity causing substantial injustice to KMH. The tribunal had given detailed reasons for its ruling, and those reasons were unimpeachable.

(b) The loss of bargain damages awarded in respect of the M/V Crimson Horizon were clearly within the scope of the pleaded case, and KMH's jurisdictional objection was without foundation.

(c) On the section 69 ground, Mr. Justice Ashworth declined to grant permission to appeal, holding that the tribunal's application of the relevant legal principles was not obviously wrong and that the questions raised were not of general public importance. His Lordship noted that the tribunal's reasoning on both the anticipatory breach issue and the off-hire clause construction was thorough, well-supported by authority, and entirely consistent with the applicable principles of English law.

(d) Mr. Justice Ashworth observed that the tribunal's Award was "a model of careful and comprehensive analysis" and that the challenge brought by KMH was "without merit and should not have been pursued."

5.5 Costs. Costs of the set-aside application were awarded to TSL on the indemnity basis, reflecting the court's view of the unreasonableness of KMH's challenge and the manner in which it was pursued. Mr. Justice Ashworth specifically noted that the application had put TSL to unnecessary expense and had been, at least in part, deployed as a tactical device to delay enforcement.

We filed detailed costs submissions on behalf of TSL, together with a schedule of TSL's costs of the set-aside application (including solicitors' fees, counsel's fees, and expert fees). The amount of those costs is to be assessed if not agreed. We have written to Harkness Whitford & Co. inviting agreement on a summary basis and will report to you on the outcome of those discussions.

A sealed copy of the order of Mr. Justice Ashworth dated 11 October 2024 is enclosed with this letter.

6. Summary of Award Composition

For ease of reference, we set out below a summary of the composition of the Award and costs, as rendered by the tribunal on 28 June 2024:

6.1 Damages.

6.2 Costs.

6.3 Grand Total

6.4 Post-Award Interest

Post-award interest continues to accrue at 5.25% per annum simple on the principal sum of £96,450,000 from 29 June 2024 (being the day following the date of the Award) until payment. As at the date of this letter, approximately three and a half months of post-award interest has accrued, amounting to approximately £1,480,000. This figure will continue to increase with the passage of time and will be recoverable in addition to the sums set out above.

7. Current Recovery Position

The table below summarises the current recovery position as at the date of this letter:

Against the total Award and Costs of £108,600,000, the recovery of £18,720,000 represents approximately 17.2% of the total amount. While substantial work remains to recover the outstanding balance, we consider this to be a strong start to the enforcement campaign, achieved within approximately three months of the commencement of proceedings.

Post-award interest continues to accrue on the principal sum as noted above, and will be taken into account in the computation of the total outstanding balance for the purposes of ongoing enforcement.

The WFO remains in force and continues to provide security over KMH's worldwide assets for the remaining outstanding amount. The combination of the WFO and the parallel enforcement proceedings in multiple jurisdictions (described below) provides TSL with a robust and comprehensive enforcement framework.

8. Status of Enforcement in Other Jurisdictions

In addition to the English proceedings, we have, in coordination with local counsel in each relevant jurisdiction, commenced enforcement and recovery proceedings in Cyprus, Singapore, and the United Arab Emirates. The current status in each jurisdiction is set out below.

8.1 Cyprus. An application for recognition and enforcement of the Award was filed on 9 August 2024 in the Nicosia District Court (Case No. 2247/2024). The application is founded on the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the "New York Convention"), to which Cyprus is a signatory, as well as the domestic provisions of the Cyprus Arbitration Law (Cap. 4).

On 12 August 2024, the Nicosia District Court granted a freezing injunction over the following assets of KMH located in Cyprus:

(a) KMH's entire shareholding in Oceangate Ventures Ltd. (HE 401293, registered office at 28 Themistokli Dervi Avenue, Suite 604, Nicosia 1066), a Cyprus-incorporated holding company through which KMH holds interests in several vessel-owning subsidiaries; and

(b) KMH's bank accounts held at financial institutions in Cyprus, the details of which were provided to the court on a confidential basis.

KMH filed opposition to the enforcement application through its Cyprus counsel, Vassiliadis & Economou LLC (7 Stasinou Avenue, 3rd Floor, Nicosia 1060). The opposition was based principally on the contention that the Award was the subject of a pending set-aside application in England and that enforcement should be adjourned pending the outcome of that challenge. The Nicosia District Court rejected that submission and dismissed KMH's opposition, noting that the mere pendency of a set-aside application in the court of the seat does not constitute a ground for refusal of recognition and enforcement under Article V of the New York Convention, and that the court retained a discretion which it declined to exercise in KMH's favour.

An enforcement order was granted on 30 September 2024, and execution proceedings against the Oceangate shares and the frozen bank accounts are now under way. We understand from our local counsel that recovery from these sources is expected imminently, and we will report to you as soon as funds are received or shares are realised.

TSL's local counsel in Cyprus is Kyprianos Makrides & Partners (15 Grivas Digenis Avenue, Nicosia 1066), acting through Andreas Kyprianos (Senior Partner) and Nadia Makrides (Partner). We have been in regular communication with that firm and are confident in the quality of the representation being provided.

8.2 Singapore. An application to enforce the Award was filed on 14 August 2024 in the Singapore High Court (Originating Summons No. OS 872/2024) pursuant to the International Arbitration Act (Cap. 143A), which gives effect to the New York Convention in Singapore.

Leave to enforce the Award as a judgment of the Singapore High Court was granted on 6 September 2024. KMH did not oppose the application for leave.

In a parallel and significant development, on 20 August 2024, the M/V Crimson Horizon was arrested in Singapore waters pursuant to an in rem action brought by TSL against the vessel. The arrest was effected by the Admiralty Sheriff pursuant to an arrest warrant issued by the Singapore High Court. KMH has not offered security for the release of the vessel, and a judicial sale process is now underway. A vessel valuation has been obtained from Northcape Maritime Advisory Ltd. (Captain Ian Forsyth, Managing Director), and the court has appointed brokers to conduct the sale. We anticipate that the proceeds of sale will be substantial, having regard to current market conditions for Handymax bulk carriers and the vessel's age and condition, and we will report to you on the outcome of the sale process in due course.

In addition, garnishee proceedings were commenced against Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in respect of accounts held by Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898), a wholly-owned subsidiary of KMH that was identified through Hartwell Pemberton's asset tracing as holding significant cash balances in Singapore. A garnishee order absolute was obtained on 18 October 2024, yielding a recovery of:

SGD $31,200,000 (approximately £18,450,000 at current exchange rates)

These funds are in the process of being transferred to TSL's recovery account, and we expect receipt to be confirmed within the coming days.

TSL's local counsel in Singapore is Straits Meridian LLP (1 Raffles Place, #44-01 One Raffles Place Tower 2, Singapore 048616), acting through David Teo Wei Lin (Partner) and Priya Subramaniam (Senior Associate). We have worked closely with that firm throughout and commend the efficiency with which the Singapore proceedings have been conducted.

8.3 United Arab Emirates

An application to enforce the Award was filed on 22 August 2024 in the Dubai Court of First Instance (Case No. 1893/2024), relying on the provisions of UAE Federal Law No. 6 of 2018 (the UAE Arbitration Law) and the New York Convention, to which the UAE is a signatory.

On 28 August 2024, the Dubai Court of First Instance granted a precautionary attachment over the accounts of Korinthian DMCC (Unit 3407, Almas Tower, Jumeirah Lakes Towers, Dubai), a Dubai-incorporated subsidiary of KMH, held at Emirates Gulf Commercial Bank PJSC (Gate Village 3, Dubai International Financial Centre, Dubai). The precautionary attachment freezes the sums in those accounts pending the determination of the enforcement application.

The substantive enforcement application is currently pending before the court. We understand from our local counsel that an enforcement order is expected in the coming weeks, and that upon the grant of such an order, we will move promptly to convert the precautionary attachment into an execution attachment and to collect the attached funds.

TSL's local counsel in the UAE is Al-Rashid Hatem & Associates (Office 1802, Emirates Financial Towers (South Tower), DIFC, Dubai), acting through Tariq Al-Rashid (Managing Partner) and Leila Hatem (Partner). We have confidence in the team's expertise in UAE enforcement proceedings and their familiarity with the relevant court procedures.

9. Next Steps

Looking ahead, the following steps are planned or in progress in the enforcement campaign:

1. England — WFO monitoring and costs assessment. We will continue to monitor and enforce compliance with the WFO. We will also pursue the assessment of TSL's costs of the set-aside application, which have been awarded on the indemnity basis. If agreement cannot be reached with Harkness Whitford & Co. on the quantum of costs, we will proceed to a detailed assessment before a costs judge.

2. Cyprus — Execution. We await the completion of the execution process in Cyprus, comprising the forced sale of KMH's shares in Oceangate Ventures Ltd. and the collection of funds from KMH's frozen Cyprus bank accounts. We are in regular communication with Kyprianos Makrides & Partners and will report to you promptly on any developments.

3. Singapore — Vessel sale and garnishee recovery. We await the proceeds from the judicial sale of the M/V Crimson Horizon in Singapore. The garnishee recovery of SGD $31,200,000 (approximately £18,450,000) has already been achieved and is in the course of being remitted. The vessel sale is expected to generate significant additional recovery.

4. UAE — Enforcement order and execution. We await the grant of the enforcement order by the Dubai Court of First Instance and will thereafter move to convert the precautionary attachment into an execution attachment and collect the attached funds.

5. Ongoing asset tracing. Hartwell Pemberton LLP continues to monitor KMH's post-award asset movements and to trace funds and assets through the KMH group's corporate structure. This work is essential to identifying additional enforcement targets and to ensuring that KMH and its beneficial owner, Andrei Volkov, are not able to place assets beyond TSL's reach.

6. Additional enforcement targets. We continue to assess additional enforcement targets, including in particular:

(a) M/V *Volga Spirit — The vessel was last reported at Fujairah anchorage in the United Arab Emirates. It is nominally owned by Dnepr Shipholding Inc. (BVI Company No. 2014876), a connected entity that Hartwell Pemberton's work has identified as being ultimately controlled by Andrei Volkov. We are evaluating the prospects of piercing the corporate veil or otherwise reaching this asset, including through an arrest of the vessel if she calls at a jurisdiction where TSL can obtain in rem* relief.

(b) Sub-charterer receivables — Hartwell Pemberton has identified outstanding receivables owed by sub-charterers to KMH and its subsidiaries, estimated at approximately £4,200,000. We are exploring the possibility of obtaining charging orders or assignment orders in respect of these receivables in the relevant jurisdictions.

7. Reporting. Regular bi-weekly status reports will continue to be provided to you, Elena Stavridis, and Nikolaos Papadimitriou, in accordance with our established practice.

10. Fee Position

We note briefly that Calderwood & Harkness's fees for the enforcement phase of this matter remain within the agreed fee cap of £4,200,000 (excluding disbursements and local counsel fees), as set out in the engagement letter dated 12 September 2024. A detailed fee update, including a breakdown of time incurred by fee earner and a forecast of fees to completion of the current phase of enforcement, will be provided in the next bi-weekly status report. All work continues to be billed at the hourly rates specified in the engagement letter.

Disbursements incurred to date include court fees, counsel's fees, Hartwell Pemberton's forensic accounting fees, and courier and translation costs. Local counsel fees in Cyprus, Singapore, and the UAE are invoiced separately by those firms and are not included within the Calderwood & Harkness fee cap. We will provide a consolidated summary of all enforcement costs in the next report.

11. Closing

We are pleased to report that the enforcement campaign is progressing well and that TSL is in a strong position. The dismissal of KMH's set-aside application removes the last obstacle to enforcement in England and sends a clear signal to KMH and its advisors that further tactical challenges will not be tolerated. The substantial recovery already achieved through the English third-party debt order and the Singapore garnishee proceedings, together with the imminent realisations expected from Cyprus and the Singapore vessel sale, provide grounds for cautious optimism that a very significant proportion of the Award will ultimately be recovered.

We would welcome the opportunity to discuss any aspect of this letter or the broader enforcement strategy with you at your convenience. Please do not hesitate to contact me or any member of the team. We would also be happy to arrange a call or meeting with Nikolaos Papadimitriou and Elena Stavridis should that be helpful, whether in person in London, Piraeus, or by video conference. The full Calderwood & Harkness team — Samuel Eklund, Hannah Brinkley, and Patrick Gallagher — remains at your disposal.

We look forward to continuing to work with you and the TSL team on this important matter.

Yours sincerely,

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

Tel: +44 (0)20 7946 0127

Email: s.eklund@calderwoodharkness.com

Enclosures:

1. Sealed copy of the Order of Mr. Justice Ashworth dated 11 October 2024 (dismissal of KMH's set-aside application under sections 68 and 69 of the Arbitration Act 1996)

2. Sealed copy of the Final Third-Party Debt Order dated 3 September 2024 (Meridian Trust Bank Ltd.)

cc:

Nikolaos Papadimitriou, Chairman & CEO, Thalassa Shipping & Logistics SA Elena Stavridis, CFO, Thalassa Shipping & Logistics SA Hannah Brinkley, Calderwood & Harkness LLP Patrick Gallagher, Calderwood & Harkness LLP

Component	Amount
Wrongful early redelivery of M/V Aegean Fortuna (IMO 9784521, Supramax Bulk Carrier, 58,200 DWT, marshall Islands flag) — 14 months remaining on charter at approximately £3,021,429 per month	£42,300,000
Outstanding hire and damages for M/V Crimson Horizon (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag) — comprising £4,280,000 in outstanding hire arrears and £23,870,000 in loss of bargain damages	£28,150,000
Restitution of fabricated off-hire deductions for M/V Volga Spirit (IMO 9756892, Panamax Bulk Carrier, 76,400 DWT, Cyprus flag)	£2,740,000
Loss of profit / market differential damages across all three charters	£16,480,000
Pre-award interest at 5.25% per annum simple	£6,780,000
Total Award	£96,450,000
Component	Amount
LCIA arbitration costs (85% allocated to KMH)	£3,240,000
TSL's legal costs (85% allocated to KMH)	£8,910,000
Total Costs	£12,150,000

Amount

Grand Total (Award + Costs)	£108,600,000
Source	Amount Recovered	Status
Third-party debt order — Meridian Trust Bank Ltd. (England)	£18,720,000	Funds received
Total recovered to date	£18,720,000
Outstanding balance (before post-award interest)	£89,880,000

PRIVILEGED AND CONFIDENTIAL — SUBJECT TO LEGAL PROFESSIONAL PRIVILEGE
CALDERWOOD & HARKNESS LLP Solicitors & International Arbitration Counsel 45 Moorgate, London EC2R 6AR, United Kingdom
Tel: +44 (0)20 7946 0100
Fax: +44 (0)20 7946 0199
DX: 42617 Moorgate www.calderwoodharkness.com
14 October 2024
By email and courier
Ms. Ioanna Christodoulou General Counsel Thalassa Shipping & Logistics SA 14 Akti Miaouli, 4th Floor Piraeus 185 35 Greece
Matter: Enforcement of LCIA Award No. 224718 — Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd. / Commercial Court Claim No. CL-2024-000487
Dear Ioanna,
1. Purpose and Introduction
We write to provide you with a comprehensive update confirming the successful outcomes achieved to date in the enforcement proceedings brought in England and Wales arising from LCIA Award No. 224718 dated 28 June 2024 (the "Award"), rendered in favour of Thalassa Shipping & Logistics SA ("TSL" or the "Company") and against Korinthian Maritime Holdings Ltd. (registered in Cyprus under company number HE 387421, with its registered office in Nicosia, Cyprus) ("KMH").
As you are aware, the Award was rendered by the tribunal chaired by Sir Malcolm Fenton-Clarke (with Professor Athena Drakopoulos and Dr. Henrik Dalmqvist as co-arbitrators) in the total amount of £96,450,000 in damages and interest, together with costs in the amount of £12,150,000, giving a grand total of £108,600,000. The Award arose from KMH's breaches of three time charter-parties relating to the vessels M/V Aegean Fortuna, M/V Crimson Horizon, and M/V Volga Spirit, and was the culmination of proceedings conducted under the auspices of the London Court of International Arbitration ("LCIA") pursuant to the LCIA Rules 2020.
The purpose of this letter is to summarise all key milestones reached in the English enforcement proceedings, to report on the current recovery position, and to set out the status of parallel enforcement actions being pursued in Cyprus, Singapore, and the United Arab Emirates. We also address the dismissal of KMH's application to set aside the Award, which was heard and determined by Mr. Justice Ashworth on 11 October 2024, and which represents a significant and definitive victory for TSL.
This letter has been prepared by me, Samuel Eklund (Responsible Partner), together with the matter team of Linda Osei (Billing Partner), Hannah Brinkley (Lead Associate), and Patrick Gallagher (Working Associate). We remain at your disposal to discuss any aspect of this update and the wider enforcement strategy at your convenience.
2. Permission to Enforce — Section 66, Arbitration Act 1996
On 15 July 2024, we filed an application notice on behalf of TSL in the Commercial Court of the High Court of Justice of England and Wales, under Claim No. CL-2024-000487, seeking permission to enforce LCIA Award No. 224718 as a judgment of the court pursuant to section 66 of the Arbitration Act 1996 (the "1996 Act"). Section 66 provides that an award made by a tribunal pursuant to an arbitration agreement may, by leave of the court, be enforced in the same manner as a judgment or order of the court to the same effect. This is the standard and well-established mechanism for the enforcement of London-seated arbitral awards in England and Wales.
The application was supported by the first witness statement of Nikolaos Papadimitriou, Chairman and Chief Executive Officer of TSL, dated 14 July 2024. Mr. Papadimitriou's statement set out in detail the background to the charter-party disputes involving the three vessels (M/V Aegean Fortuna, M/V Crimson Horizon, and M/V Volga Spirit), the commencement and conduct of the arbitration proceedings before the LCIA, the procedural history of the reference, and the substance and findings of the Award. The witness statement exhibited certified copies of the executed charter-parties, the relevant LCIA correspondence, the procedural orders issued by the tribunal, and the Award itself.
In accordance with the usual practice under CPR Part 62 and Practice Direction 62, the application was made without notice to KMH in the first instance, and was considered by the court on paper.
Permission to enforce was granted by Mr. Justice Ashworth on 2 August 2024. The order of Mr. Justice Ashworth provides that the Award is enforceable as a judgment of the Commercial Court for the full principal sum of £96,450,000 together with costs of £12,150,000, and that TSL has liberty to enter judgment in those terms. KMH was given the requisite period under CPR Part 62.18 within which to apply to set aside the order granting permission to enforce, but any such challenge was subsumed within KMH's broader set-aside application under sections 68 and 69 of the 1996 Act, which is addressed in Section 5 of this letter below.
We note that KMH has been represented throughout the English proceedings by Harkness Whitford & Co. (12 Fetter Lane, London EC4A 1JP; SRA Registration No. 614823), with Catherine Whitford acting as lead partner on behalf of KMH. We have maintained professional correspondence with Harkness Whitford throughout and all relevant orders have been served on that firm in accordance with the court's directions.
The effect of the order of 2 August 2024 is that TSL now holds an English court judgment for the full amount of the Award and costs, and the full range of execution mechanisms available under English procedural law are available to enforce that judgment. This formed the foundation upon which we have pursued the various enforcement and recovery steps described below.
3. Worldwide Freezing Order
3.1 The Without-Notice Application
Contemporaneously with the filing of the section 66 application, on 15 July 2024 we made an application on behalf of TSL for a worldwide freezing order ("WFO") restraining KMH from removing from England and Wales, or in any way disposing of, dealing with, or diminishing the value of, any of its assets worldwide, whether held in KMH's own name or by any nominee or agent on its behalf.
The application was made without notice to KMH, in accordance with the principles established in Fourie v. Le Roux [2007] UKHL 1 and the standard form Commercial Court freezing order. It was supported by detailed affidavit evidence demonstrating both a good arguable case on the merits (being, in this instance, the Award itself, which is prima facie conclusive of the underlying dispute) and a real risk of dissipation of KMH's assets.
3.2 Grant of the WFO
On 16 July 2024, Mr. Justice Ashworth granted the WFO on an ex parte basis, restraining KMH from removing from England and Wales or in any way disposing of, dealing with, or diminishing the value of any of its assets worldwide up to a maximum value of £108,600,000 (being the full amount of the Award together with the costs allocated to KMH).
The WFO was granted in the standard form of the Commercial Court, and included the following key ancillary provisions:
(a) Asset disclosure obligations — KMH was required, within seven (7) days of service of the order, to provide full disclosure of all assets worldwide exceeding £25,000 in value, whether held in KMH's own name or by any nominee, agent, or controlled entity, including but not limited to real property, vessels, shares, bank accounts, receivables, and any interest in any corporate entity;
(b) Passport surrender provisions — in respect of any individual respondent (not applicable here, but included as a standard term);
(c) Third-party notification provisions — authorising TSL to serve the WFO on banks, financial institutions, and other third parties holding assets of or on behalf of KMH; and
(d) Penal notice — attaching to any breach of the terms of the WFO, with the consequence that KMH and any officer or director responsible for a breach may be held in contempt of court and liable to imprisonment, fine, or sequestration of assets.
3.3 Service and the Return Date Hearing
The WFO was served on KMH's solicitors, Harkness Whitford & Co., by email and DX on 17 July 2024, together with the supporting evidence and the application notice. Notice was also given to the principal banks and financial institutions identified through our asset tracing work as holding accounts in the name of KMH or its subsidiaries.
The return date hearing took place on 30 July 2024 before Mr. Justice Ashworth. At that hearing, KMH (through Catherine Whitford of Harkness Whitford & Co.) did not seek discharge of the WFO but applied for certain modifications to the terms of the order, principally in relation to the scope of the asset disclosure obligations and KMH's ordinary course of business expenditure. Having heard argument from both sides, Mr. Justice Ashworth continued the WFO with limited modifications, including a modest increase to KMH's permitted ordinary living and business expenditure allowance and a clarification of the disclosure timetable. The core injunctive relief remained in full force.
3.4 Evidence of Risk of Dissipation
The application for the WFO was supported by compelling evidence of a real risk of dissipation, drawing in particular on the asset tracing and forensic accounting work carried out by Hartwell Pemberton LLP, forensic accountants (25 Old Broad Street, London EC2N 1HN), under the direction of Rebecca Saunders (Partner) and Mark Huxley (Director). Hartwell Pemberton's preliminary report, dated 12 July 2024, identified a series of concerning post-award asset transfers and corporate restructuring steps undertaken by KMH and entities controlled by Andrei Volkov, the ultimate beneficial owner of the KMH group. These included:
(a) the transfer of approximately US$14.5 million from KMH's principal operating account at Emirates Gulf Commercial Bank PJSC in Dubai to a newly incorporated entity in the British Virgin Islands within days of the Award being rendered;
(b) the interposition of a new holding company, Dnepr Capital Advisors Ltd. (BVI Company No. 2047891), between KMH and certain vessel-owning subsidiaries, with the apparent purpose of putting assets beyond the reach of TSL's enforcement;
(c) the purported sale of M/V Volga Spirit to Dnepr Shipholding Inc. (BVI Company No. 2014876), a connected entity, at what appeared to be a significant undervalue based on comparable vessel transactions; and
(d) the resignation of KMH's sole director, Mr. Volkov, and his replacement with a nominee director based in Ras Al Khaimah, in what appeared to be an attempt to obscure beneficial ownership and frustrate enforcement.
These matters were set out in the witness statement of Rebecca Saunders and formed a critical part of the evidence before Mr. Justice Ashworth in support of the WFO.
3.5 Current Status
The WFO remains in full force and effect pending further order of the court. No application for its discharge has been made by KMH, and the order continues to provide valuable security for the remaining outstanding balance of the Award and costs. We continue to monitor compliance with the WFO and the asset disclosure obligations, and we will not hesitate to bring contempt proceedings in the event of any breach.
4. Third-Party Debt Order Against Meridian Trust Bank Ltd.
4.1 Interim Order
On 5 August 2024, we filed an application on behalf of TSL for an interim third-party debt order under CPR Part 72 against Meridian Trust Bank Ltd. (50 Lombard Street, London EC3V 9EA) in respect of all sums standing to the credit of KMH in accounts held at that bank.
The application was supported by a witness statement of Hannah Brinkley of this firm, dated 4 August 2024, which attested to the account information derived from two sources: first, the forensic asset tracing conducted by Hartwell Pemberton LLP, which had identified KMH as maintaining a significant sterling-denominated operating account and a US dollar-denominated deposit account at Meridian Trust Bank; and second, the asset disclosure provided by KMH pursuant to the ancillary disclosure provisions of the WFO.
The interim third-party debt order was granted by the court on 5 August 2024, with the immediate effect of freezing all sums standing to KMH's credit at Meridian Trust Bank Ltd. pending the hearing of the application for a final order.
4.2 Final Order and Recovery
The application for a final third-party debt order was heard on 3 September 2024. KMH, through Harkness Whitford & Co., did not attend the hearing and filed no evidence in opposition. Meridian Trust Bank Ltd. appeared through counsel and confirmed the balances held in the relevant accounts. No other person claimed to be entitled to the funds or to have a prior charge or interest.
The final third-party debt order was made on 3 September 2024, directing Meridian Trust Bank Ltd. to pay the sum standing to KMH's credit directly to TSL in partial satisfaction of the judgment. The total amount garnished and paid over to TSL pursuant to the order was:
£18,720,000
These funds were received into TSL's designated recovery account at Ionian National Bank SA (22 Stadiou Street, Athens 105 64, Greece) on 10 September 2024, and have been confirmed by Elena Stavridis as having been received in full and reconciled against the outstanding judgment debt.
This recovery of £18,720,000 represents the first substantial recovery in the enforcement campaign, and demonstrates the effectiveness of the combined strategy of obtaining a WFO (which compelled asset disclosure) followed by targeted third-party debt proceedings against identified account-holding institutions.
A sealed copy of the final third-party debt order dated 3 September 2024 is enclosed with this letter for your records.
5. Dismissal of KMH's Set-Aside Application (Sections 68 and 69, Arbitration Act 1996)
5.1 KMH's Application
On 19 August 2024, KMH filed an application seeking to set aside LCIA Award No. 224718 under section 68 (serious irregularity) and section 69 (appeal on a point of law) of the Arbitration Act 1996. The application was filed by Harkness Whitford & Co. on instructions from Richard Harkness (Senior Partner) and James Thornbury (Associate), and was supported by a witness statement of Mr. Volkov and a skeleton argument settling KMH's grounds of challenge.
KMH's application contended, in summary, that:
(a) the tribunal had committed a serious irregularity within the meaning of section 68(2)(a) by failing to comply with its general duty under section 33 of the 1996 Act, in that it had allegedly refused to admit certain late documentary evidence tendered by KMH during the evidentiary hearing and had thereby denied KMH a reasonable opportunity to present its case;
(b) the tribunal had committed a further serious irregularity under section 68(2)(b) by exceeding its jurisdiction in awarding loss of bargain damages in respect of the M/V Crimson Horizon charter-party, on the basis that the claim as pleaded did not encompass forward-looking damages of the type awarded;
(c) on the section 69 ground, KMH alleged that the tribunal had erred in its application of the principles of anticipatory breach and the duty to mitigate under English law, and that the tribunal's construction of the off-hire clause in the M/V Volga Spirit charter-party was wrong as a matter of law.
5.2 TSL's Opposition
Calderwood & Harkness filed a comprehensive skeleton argument on behalf of TSL opposing the set-aside application in its entirety. Our principal submissions were as follows:
(a) Section 68 — general duty: The tribunal, presided over by Sir Malcolm Fenton-Clarke, with co-arbitrators Professor Athena Drakopoulos and Dr. Henrik Dalmqvist, properly exercised its case management discretion in declining to admit documentary evidence that was tendered by KMH well outside the timetable established by Procedural Order No. 4 (dated 15 June 2023). The 10-day evidentiary hearing, held from 11 to 22 September 2023 at the International Dispute Resolution Centre ("IDRC"), 70 Fleet Street, London, was conducted in full accordance with the principles of procedural fairness, and KMH had been given every reasonable opportunity to present its case, including through the examination and cross-examination of factual and expert witnesses.
(b) Section 68 — excess of jurisdiction: The tribunal's award of loss of bargain damages in respect of the M/V Crimson Horizon was squarely within the scope of the claims as pleaded in TSL's Statement of Case and as refined in TSL's Amended Statement of Case dated 2 May 2023. KMH's jurisdictional objection was, in substance, a complaint about the tribunal's assessment of quantum, which does not engage section 68.
(c) Section 69 — appeal on point of law: KMH's application for permission to appeal on a point of law failed at the threshold, in that the questions of law identified by KMH did not meet the stringent requirements of section 69(3) of the 1996 Act. Specifically, the questions raised were not questions of general public importance, and the decision of the tribunal on those questions was not obviously wrong. The tribunal's application of the principles of anticipatory breach and its construction of the off-hire clause were both well within the range of permissible interpretations open to it on the evidence and the authorities.
(d) Disguised appeal on the merits: Taken as a whole, KMH's challenge constituted a disguised appeal on the merits of the Award, dressed up as a challenge under sections 68 and 69. The well-established jurisprudence, including Lesotho Highlands Development Authority v. Impregilo SpA [2005] UKHL 43 and RAV Bahamas Ltd v. Therapy Beach Club Inc [2021] UKPC 8, makes clear that the English courts will not entertain such challenges, and that the threshold for a successful set-aside is deliberately and properly set at a very high level.
5.3 Internal Risk Assessment
We should note, for completeness, that our internal risk assessment, prepared in consultation with leading counsel and circulated to you on 27 August 2024, assessed the probability of a successful set-aside at less than 10%. KMH's grounds were, in our assessment, devoid of merit and appeared to be motivated primarily by a desire to delay enforcement and to exert commercial pressure on TSL. The outcome of the hearing vindicated that assessment.
5.4 The Hearing and Judgment
The hearing of KMH's set-aside application took place on 11 October 2024 before Mr. Justice Ashworth in the Commercial Court. Both parties were represented by leading and junior counsel. Mr. Justice Ashworth heard argument over the course of a full day and delivered an ex tempore judgment at the conclusion of the hearing.
Mr. Justice Ashworth dismissed KMH's application in its entirety. In his judgment, Mr. Justice Ashworth made the following observations, among others:
(a) The tribunal's case management decision in relation to the late evidence was well within its discretion and could not conceivably be characterised as a serious irregularity causing substantial injustice to KMH. The tribunal had given detailed reasons for its ruling, and those reasons were unimpeachable.
(b) The loss of bargain damages awarded in respect of the M/V Crimson Horizon were clearly within the scope of the pleaded case, and KMH's jurisdictional objection was without foundation.
(c) On the section 69 ground, Mr. Justice Ashworth declined to grant permission to appeal, holding that the tribunal's application of the relevant legal principles was not obviously wrong and that the questions raised were not of general public importance. His Lordship noted that the tribunal's reasoning on both the anticipatory breach issue and the off-hire clause construction was thorough, well-supported by authority, and entirely consistent with the applicable principles of English law.
(d) Mr. Justice Ashworth observed that the tribunal's Award was "a model of careful and comprehensive analysis" and that the challenge brought by KMH was "without merit and should not have been pursued."
5.5 Costs. Costs of the set-aside application were awarded to TSL on the indemnity basis, reflecting the court's view of the unreasonableness of KMH's challenge and the manner in which it was pursued. Mr. Justice Ashworth specifically noted that the application had put TSL to unnecessary expense and had been, at least in part, deployed as a tactical device to delay enforcement.
We filed detailed costs submissions on behalf of TSL, together with a schedule of TSL's costs of the set-aside application (including solicitors' fees, counsel's fees, and expert fees). The amount of those costs is to be assessed if not agreed. We have written to Harkness Whitford & Co. inviting agreement on a summary basis and will report to you on the outcome of those discussions.
A sealed copy of the order of Mr. Justice Ashworth dated 11 October 2024 is enclosed with this letter.
6. Summary of Award Composition
For ease of reference, we set out below a summary of the composition of the Award and costs, as rendered by the tribunal on 28 June 2024:
6.1 Damages.
6.2 Costs.
6.3 Grand Total
6.4 Post-Award Interest
Post-award interest continues to accrue at 5.25% per annum simple on the principal sum of £96,450,000 from 29 June 2024 (being the day following the date of the Award) until payment. As at the date of this letter, approximately three and a half months of post-award interest has accrued, amounting to approximately £1,480,000. This figure will continue to increase with the passage of time and will be recoverable in addition to the sums set out above.
7. Current Recovery Position
The table below summarises the current recovery position as at the date of this letter:
Against the total Award and Costs of £108,600,000, the recovery of £18,720,000 represents approximately 17.2% of the total amount. While substantial work remains to recover the outstanding balance, we consider this to be a strong start to the enforcement campaign, achieved within approximately three months of the commencement of proceedings.
Post-award interest continues to accrue on the principal sum as noted above, and will be taken into account in the computation of the total outstanding balance for the purposes of ongoing enforcement.
The WFO remains in force and continues to provide security over KMH's worldwide assets for the remaining outstanding amount. The combination of the WFO and the parallel enforcement proceedings in multiple jurisdictions (described below) provides TSL with a robust and comprehensive enforcement framework.
8. Status of Enforcement in Other Jurisdictions
In addition to the English proceedings, we have, in coordination with local counsel in each relevant jurisdiction, commenced enforcement and recovery proceedings in Cyprus, Singapore, and the United Arab Emirates. The current status in each jurisdiction is set out below.
8.1 Cyprus. An application for recognition and enforcement of the Award was filed on 9 August 2024 in the Nicosia District Court (Case No. 2247/2024). The application is founded on the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the "New York Convention"), to which Cyprus is a signatory, as well as the domestic provisions of the Cyprus Arbitration Law (Cap. 4).
On 12 August 2024, the Nicosia District Court granted a freezing injunction over the following assets of KMH located in Cyprus:
(a) KMH's entire shareholding in Oceangate Ventures Ltd. (HE 401293, registered office at 28 Themistokli Dervi Avenue, Suite 604, Nicosia 1066), a Cyprus-incorporated holding company through which KMH holds interests in several vessel-owning subsidiaries; and
(b) KMH's bank accounts held at financial institutions in Cyprus, the details of which were provided to the court on a confidential basis.
KMH filed opposition to the enforcement application through its Cyprus counsel, Vassiliadis & Economou LLC (7 Stasinou Avenue, 3rd Floor, Nicosia 1060). The opposition was based principally on the contention that the Award was the subject of a pending set-aside application in England and that enforcement should be adjourned pending the outcome of that challenge. The Nicosia District Court rejected that submission and dismissed KMH's opposition, noting that the mere pendency of a set-aside application in the court of the seat does not constitute a ground for refusal of recognition and enforcement under Article V of the New York Convention, and that the court retained a discretion which it declined to exercise in KMH's favour.
An enforcement order was granted on 30 September 2024, and execution proceedings against the Oceangate shares and the frozen bank accounts are now under way. We understand from our local counsel that recovery from these sources is expected imminently, and we will report to you as soon as funds are received or shares are realised.
TSL's local counsel in Cyprus is Kyprianos Makrides & Partners (15 Grivas Digenis Avenue, Nicosia 1066), acting through Andreas Kyprianos (Senior Partner) and Nadia Makrides (Partner). We have been in regular communication with that firm and are confident in the quality of the representation being provided.
8.2 Singapore. An application to enforce the Award was filed on 14 August 2024 in the Singapore High Court (Originating Summons No. OS 872/2024) pursuant to the International Arbitration Act (Cap. 143A), which gives effect to the New York Convention in Singapore.
Leave to enforce the Award as a judgment of the Singapore High Court was granted on 6 September 2024. KMH did not oppose the application for leave.
In a parallel and significant development, on 20 August 2024, the M/V Crimson Horizon was arrested in Singapore waters pursuant to an in rem action brought by TSL against the vessel. The arrest was effected by the Admiralty Sheriff pursuant to an arrest warrant issued by the Singapore High Court. KMH has not offered security for the release of the vessel, and a judicial sale process is now underway. A vessel valuation has been obtained from Northcape Maritime Advisory Ltd. (Captain Ian Forsyth, Managing Director), and the court has appointed brokers to conduct the sale. We anticipate that the proceeds of sale will be substantial, having regard to current market conditions for Handymax bulk carriers and the vessel's age and condition, and we will report to you on the outcome of the sale process in due course.
In addition, garnishee proceedings were commenced against Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in respect of accounts held by Korinthian Bulkers (Singapore) Pte. Ltd. (80 Robinson Road, #14-02, Singapore 068898), a wholly-owned subsidiary of KMH that was identified through Hartwell Pemberton's asset tracing as holding significant cash balances in Singapore. A garnishee order absolute was obtained on 18 October 2024, yielding a recovery of:
SGD $31,200,000 (approximately £18,450,000 at current exchange rates)
These funds are in the process of being transferred to TSL's recovery account, and we expect receipt to be confirmed within the coming days.
TSL's local counsel in Singapore is Straits Meridian LLP (1 Raffles Place, #44-01 One Raffles Place Tower 2, Singapore 048616), acting through David Teo Wei Lin (Partner) and Priya Subramaniam (Senior Associate). We have worked closely with that firm throughout and commend the efficiency with which the Singapore proceedings have been conducted.
8.3 United Arab Emirates
An application to enforce the Award was filed on 22 August 2024 in the Dubai Court of First Instance (Case No. 1893/2024), relying on the provisions of UAE Federal Law No. 6 of 2018 (the UAE Arbitration Law) and the New York Convention, to which the UAE is a signatory.
On 28 August 2024, the Dubai Court of First Instance granted a precautionary attachment over the accounts of Korinthian DMCC (Unit 3407, Almas Tower, Jumeirah Lakes Towers, Dubai), a Dubai-incorporated subsidiary of KMH, held at Emirates Gulf Commercial Bank PJSC (Gate Village 3, Dubai International Financial Centre, Dubai). The precautionary attachment freezes the sums in those accounts pending the determination of the enforcement application.
The substantive enforcement application is currently pending before the court. We understand from our local counsel that an enforcement order is expected in the coming weeks, and that upon the grant of such an order, we will move promptly to convert the precautionary attachment into an execution attachment and to collect the attached funds.
TSL's local counsel in the UAE is Al-Rashid Hatem & Associates (Office 1802, Emirates Financial Towers (South Tower), DIFC, Dubai), acting through Tariq Al-Rashid (Managing Partner) and Leila Hatem (Partner). We have confidence in the team's expertise in UAE enforcement proceedings and their familiarity with the relevant court procedures.
9. Next Steps
Looking ahead, the following steps are planned or in progress in the enforcement campaign:
1. England — WFO monitoring and costs assessment. We will continue to monitor and enforce compliance with the WFO. We will also pursue the assessment of TSL's costs of the set-aside application, which have been awarded on the indemnity basis. If agreement cannot be reached with Harkness Whitford & Co. on the quantum of costs, we will proceed to a detailed assessment before a costs judge.
2. Cyprus — Execution. We await the completion of the execution process in Cyprus, comprising the forced sale of KMH's shares in Oceangate Ventures Ltd. and the collection of funds from KMH's frozen Cyprus bank accounts. We are in regular communication with Kyprianos Makrides & Partners and will report to you promptly on any developments.
3. Singapore — Vessel sale and garnishee recovery. We await the proceeds from the judicial sale of the M/V Crimson Horizon in Singapore. The garnishee recovery of SGD $31,200,000 (approximately £18,450,000) has already been achieved and is in the course of being remitted. The vessel sale is expected to generate significant additional recovery.
4. UAE — Enforcement order and execution. We await the grant of the enforcement order by the Dubai Court of First Instance and will thereafter move to convert the precautionary attachment into an execution attachment and collect the attached funds.
5. Ongoing asset tracing. Hartwell Pemberton LLP continues to monitor KMH's post-award asset movements and to trace funds and assets through the KMH group's corporate structure. This work is essential to identifying additional enforcement targets and to ensuring that KMH and its beneficial owner, Andrei Volkov, are not able to place assets beyond TSL's reach.
6. Additional enforcement targets. We continue to assess additional enforcement targets, including in particular:
(a) M/V *Volga Spirit — The vessel was last reported at Fujairah anchorage in the United Arab Emirates. It is nominally owned by Dnepr Shipholding Inc. (BVI Company No. 2014876), a connected entity that Hartwell Pemberton's work has identified as being ultimately controlled by Andrei Volkov. We are evaluating the prospects of piercing the corporate veil or otherwise reaching this asset, including through an arrest of the vessel if she calls at a jurisdiction where TSL can obtain in rem* relief.
(b) Sub-charterer receivables — Hartwell Pemberton has identified outstanding receivables owed by sub-charterers to KMH and its subsidiaries, estimated at approximately £4,200,000. We are exploring the possibility of obtaining charging orders or assignment orders in respect of these receivables in the relevant jurisdictions.
7. Reporting. Regular bi-weekly status reports will continue to be provided to you, Elena Stavridis, and Nikolaos Papadimitriou, in accordance with our established practice.
10. Fee Position
We note briefly that Calderwood & Harkness's fees for the enforcement phase of this matter remain within the agreed fee cap of £4,200,000 (excluding disbursements and local counsel fees), as set out in the engagement letter dated 12 September 2024. A detailed fee update, including a breakdown of time incurred by fee earner and a forecast of fees to completion of the current phase of enforcement, will be provided in the next bi-weekly status report. All work continues to be billed at the hourly rates specified in the engagement letter.
Disbursements incurred to date include court fees, counsel's fees, Hartwell Pemberton's forensic accounting fees, and courier and translation costs. Local counsel fees in Cyprus, Singapore, and the UAE are invoiced separately by those firms and are not included within the Calderwood & Harkness fee cap. We will provide a consolidated summary of all enforcement costs in the next report.
11. Closing
We are pleased to report that the enforcement campaign is progressing well and that TSL is in a strong position. The dismissal of KMH's set-aside application removes the last obstacle to enforcement in England and sends a clear signal to KMH and its advisors that further tactical challenges will not be tolerated. The substantial recovery already achieved through the English third-party debt order and the Singapore garnishee proceedings, together with the imminent realisations expected from Cyprus and the Singapore vessel sale, provide grounds for cautious optimism that a very significant proportion of the Award will ultimately be recovered.
We would welcome the opportunity to discuss any aspect of this letter or the broader enforcement strategy with you at your convenience. Please do not hesitate to contact me or any member of the team. We would also be happy to arrange a call or meeting with Nikolaos Papadimitriou and Elena Stavridis should that be helpful, whether in person in London, Piraeus, or by video conference. The full Calderwood & Harkness team — Samuel Eklund, Hannah Brinkley, and Patrick Gallagher — remains at your disposal.
We look forward to continuing to work with you and the TSL team on this important matter.
Yours sincerely,
Samuel Eklund Partner Calderwood & Harkness LLP 45 Moorgate, London EC2R 6AR, United Kingdom
Tel: +44 (0)20 7946 0127
Email: s.eklund@calderwoodharkness.com
Enclosures:
1. Sealed copy of the Order of Mr. Justice Ashworth dated 11 October 2024 (dismissal of KMH's set-aside application under sections 68 and 69 of the Arbitration Act 1996)
2. Sealed copy of the Final Third-Party Debt Order dated 3 September 2024 (Meridian Trust Bank Ltd.)
cc:
Nikolaos Papadimitriou, Chairman & CEO, Thalassa Shipping & Logistics SA Elena Stavridis, CFO, Thalassa Shipping & Logistics SA Hannah Brinkley, Calderwood & Harkness LLP Patrick Gallagher, Calderwood & Harkness LLP
Component | Amount
Wrongful early redelivery of M/V Aegean Fortuna (IMO 9784521, Supramax Bulk Carrier, 58,200 DWT, marshall Islands flag) — 14 months remaining on charter at approximately £3,021,429 per month | £42,300,000
Outstanding hire and damages for M/V Crimson Horizon (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag) — comprising £4,280,000 in outstanding hire arrears and £23,870,000 in loss of bargain damages | £28,150,000
Restitution of fabricated off-hire deductions for M/V Volga Spirit (IMO 9756892, Panamax Bulk Carrier, 76,400 DWT, Cyprus flag) | £2,740,000
Loss of profit / market differential damages across all three charters | £16,480,000
Pre-award interest at 5.25% per annum simple | £6,780,000
Total Award | £96,450,000
Component | Amount
LCIA arbitration costs (85% allocated to KMH) | £3,240,000
TSL's legal costs (85% allocated to KMH) | £8,910,000
Total Costs | £12,150,000
Amount
Grand Total (Award + Costs) | £108,600,000
Source | Amount Recovered | Status
Third-party debt order — Meridian Trust Bank Ltd. (England) | £18,720,000 | Funds received
Total recovered to date | £18,720,000
Outstanding balance (before post-award interest) | £89,880,000

PRIVILEGED AND CONFIDENTIAL — SUBJECT TO LEGAL PROFESSIONAL PRIVILEGE

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