CALDERWOOD & HARKNESS LLP
45 Moorgate, London EC2R 6AR, United Kingdom
MATTER CLOSE CHECKLIST
Enforcement of LCIA Final Award No. 224718
Thalassa Shipping & Logistics SA v. Korinthian Maritime Holdings Ltd.
LCIA No. 224718 / Commercial Court Claim No. CL-2024-000487
PRIVILEGED & CONFIDENTIAL — INTERNAL USE ONLY
This document is prepared for the sole internal use of Calderwood & Harkness LLP personnel involved in the above-referenced matter. It is protected by legal professional privilege and the work product doctrine. It must not be disclosed, distributed, or otherwise made available to any party outside the firm without the prior written authorization of the Responsible Partner.
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SECTION 1: MATTER IDENTIFICATION AND SUMMARY
This section sets out the core identifying information for the matter, including the parties, the nature of the dispute, the engagement terms, and a summary of the final recovery position as of the target close date of 15 March 2025. All team members should verify that the information contained in this section is accurate and complete before signing off on the checklist.
1.1 Client Information
Client Contacts:
TSL is a well-established Greek shipping company engaged in dry bulk carrier operations in international markets. The company's shareholding structure comprises the Papadimitriou family trust (holding approximately 72% of the issued share capital) and Aegean Capital Partners SA (holding approximately 28% of the issued share capital). TSL has been a client of the firm since the commencement of the enforcement phase in September 2024, although the underlying arbitration was conducted by Ariston & Partners (Athens) with Whitfield & Halsey LLP (London) acting as co-counsel before the LCIA tribunal.
1.2 Opposing Party Information
Key Personnel:
Related Entities:
The KMH corporate group comprises a number of related entities across multiple jurisdictions. The following entities have been identified through the course of the enforcement proceedings, in particular through the worldwide freezing order ("WFO") asset disclosure process and the forensic tracing work conducted by Hartwell Pemberton LLP. Each of these entities has been flagged as adverse in the firm's conflicts database.
The interrelationship between these entities, and in particular the beneficial ownership chain linking Dnepr Shipholding Inc. to KMH through Oceangate Ventures Ltd., has been documented in the Hartwell Pemberton preliminary findings report dated 15 August 2024 and the updated findings report dated 1 October 2024. These reports are critical to the enforcement strategy and must be retained on file.
1.3 Matter Description
This matter concerns the enforcement of LCIA Final Award No. 224718, dated 28 June 2024 (the "Award"), rendered in favour of Thalassa Shipping & Logistics SA against Korinthian Maritime Holdings Ltd.
The underlying dispute arose out of three time charterparty agreements entered into between TSL (as disponent owner) and KMH (as charterer) in respect of the dry bulk carrier vessels M/V Aegean Fortuna, M/V Crimson Horizon, and M/V Volga Spirit. The tribunal, constituted under the rules of the London Court of International Arbitration, found KMH liable for, inter alia, wrongful early redelivery of the M/V Aegean Fortuna, non-payment of hire under all three charterparties, and breach of the safe port warranty in respect of the M/V Crimson Horizon. The claims were heard over a period of approximately eighteen months, with the final hearing taking place in London in March 2024.
Financial Summary of the Award:
At the prevailing exchange rate on the date of the Award (£1 = USD $1.2441), the total amount of the Award plus costs was equivalent to approximately USD $135,143,460. For ease of reference and in light of the fact that the Award was denominated in pounds sterling, all amounts in this checklist are expressed in GBP unless otherwise stated. The approximate USD equivalent at the Award date for the aggregate Award and costs figure was approximately USD $120,000,000 (applying a rounded exchange rate; the precise figure is as stated above).
Post-Award Interest:
The Award provides for post-award interest at a rate of 5.25% per annum simple on the principal sum of £96,450,000, running from 29 June 2024 until full payment. As of the target close date of 15 March 2025, the accrued post-award interest on the unpaid portion of the Award is calculated as follows:
The interest calculation has been prepared jointly by Calderwood & Harkness LLP and Hartwell Pemberton LLP. It is noted that the interest calculation is approximate and subject to adjustment to reflect the precise dates and amounts of partial payments and enforcement recoveries. A detailed interest calculation memorandum, taking into account all partial recovery dates and amounts, is being finalized by Hartwell Pemberton and will be placed on file.
Enforcement Jurisdictions:
Enforcement actions have been pursued across four jurisdictions:
1. England & Wales — as the seat of the arbitration and the jurisdiction in which the Award was made;
2. Cyprus — as the jurisdiction of incorporation and registered office of KMH;
3. Singapore — as the jurisdiction in which KMH maintained significant bank accounts and in which one of its vessels (the M/V Crimson Horizon) was present; and
4. United Arab Emirates (Dubai) — as the jurisdiction in which KMH's subsidiary, Korinthian DMCC, maintained accounts and operations.
1.4 Engagement Details
Calderwood & Harkness LLP was engaged by TSL to act as lead counsel for the enforcement of the Award. The engagement was opened on 12 September 2024, following the grant of permission to enforce the Award as a judgment of the Commercial Court under section 66 of the Arbitration Act 1996 on 2 August 2024 and the obtaining of the initial worldwide freezing order on 16 July 2024.
Prior to the opening of the enforcement engagement with this firm, the WFO application and section 66 proceedings were handled on an expedited basis by the firm under an interim instruction from TSL's Greek counsel, Ariston & Partners, pending the formal execution of the engagement letter.
Fee Arrangements:
The fee cap applies to the fees of Calderwood & Harkness LLP only and does not extend to disbursements (including court fees, travel costs, and expert fees) or to the fees of local counsel instructed in Cyprus, Singapore, or the UAE. The success fee is payable in addition to the capped fees and is calculated on the total amounts actually received by TSL as a result of the enforcement proceedings, regardless of the jurisdiction from which those amounts are recovered.
1.5 Final Recovery Summary
The following table summarizes all enforcement recoveries achieved as of the date of this checklist. All amounts are expressed in GBP. Where recovery was made in a foreign currency, the GBP equivalent is stated at the exchange rate prevailing at the date of receipt.
Outstanding Balance and Recovery Rate:
The recovery rate of approximately 89% represents a very strong outcome in the context of international award enforcement against a recalcitrant debtor that engaged in active asset dissipation and evasive jurisdictional tactics. The remaining outstanding balance of approximately £15.6 million includes the full amount of accrued post-award interest and a portion of the principal Award and costs allocation.
Checklist Items:
• Confirm all recovery figures reconciled to final recovery and interest reconciliation memorandum (prepared jointly by C&H and Hartwell Pemberton LLP; final version to be filed upon receipt)
• Confirm all proceeds credited to TSL's designated recovery account at Ionian National Bank SA, 22 Stadiou Street, Athens 105 64, Greece (IBAN and account details on file; confirmation to be obtained from Elena Stavridis, CFO)
SECTION 2: OUTSTANDING ITEMS — ENFORCEMENT ACTIONS REMAINING OPEN
Although the bulk of enforcement activity has been concluded, a number of items remain open and must either be resolved prior to final matter close or carried forward into the monitoring phase. This section identifies each such item, the actions required, the responsible team member, and the applicable deadlines.
2.1 Partial Discharge of Worldwide Freezing Order (England & Wales)
Background:
A worldwide freezing order was granted by Mr. Justice Ashworth in the Commercial Court on 16 July 2024 (the "WFO"), restraining KMH and its related entities from dealing with or diminishing their assets worldwide up to the value of £108,600,000 (being the full amount of the Award plus costs). The WFO was continued at the return date hearing on 30 July 2024. Given that approximately £96,590,000 has now been recovered, the maximum sum restrained under the WFO must be reduced to reflect the outstanding balance. The duty of full and frank disclosure and the obligation to act in good faith require TSL to notify the court and KMH's solicitors of the changed position and to seek an appropriate variation of the order.
It is essential that the WFO remain in force at the reduced level pending full recovery. The partial discharge application should be framed as a variation rather than a discharge, and the application notice and supporting evidence should make clear that TSL reserves all rights in respect of the outstanding balance and that the WFO is required to protect the remaining claim.
Checklist Items:
• Draft partial discharge order reviewed and approved by Samuel Eklund (Responsible Partner)
• Consent order circulated to Harkness Whitford & Co. (Catherine Whitford, solicitor for KMH in England & Wales) for agreement; if agreement is not forthcoming within 7 days, a contested application notice is to be prepared and filed
• Application filed with the Commercial Court and hearing date obtained (or, if by consent, order submitted for approval by the judge without a hearing)
• Confirm that WFO remains in force at the reduced level of approximately £15,617,726.03 pending full recovery of the outstanding balance (including any further interest accrual)
2.2 M/V *Volga Spirit* — Ongoing Monitoring and Arrest Prospects
The M/V Volga Spirit remains the most significant identifiable asset against which enforcement might be pursued in respect of the outstanding balance. The vessel is a Panamax bulk carrier with an estimated market value that could substantially satisfy the remaining claim.
Vessel Details:
Status: The M/V Volga Spirit has not been arrested. The vessel has been tracked since the commencement of the enforcement phase through AIS (Automatic Identification System) monitoring provided by Northcape Maritime Advisory Ltd. under the direction of Captain Ian Forsyth. The vessel has primarily traded in the Middle East and South Asian regions since the Award was rendered, and its recent berthing patterns suggest that her operators are aware of the risk of arrest and may be seeking to avoid jurisdictions in which arrest could readily be effected. Nevertheless, the vessel was last reported at the Fujairah anchorage in the UAE, which is a jurisdiction in which arrest proceedings could be commenced through our local counsel, Al-Rashid Hatem & Associates.
Action Required:
(a) Continue vessel tracking and AIS monitoring through Northcape Maritime Advisory Ltd. (Captain Ian Forsyth). The existing vessel tracking alert protocol should be confirmed and, if necessary, updated to ensure that automated notifications are issued to Patrick Gallagher and Hannah Brinkley whenever the M/V Volga Spirit enters or approaches a port in which arrest could be effected.
(b) Instruct Al-Rashid Hatem & Associates (Tariq Al-Rashid / Leila Hatem) to prepare arrest documentation for UAE admiralty jurisdiction on a standby basis. Given the vessel's current location at Fujairah anchorage, this instruction should be treated as a matter of priority so that arrest can be effected on short notice if the client instructs.
(c) Brief Straits Meridian LLP (David Teo Wei Lin / Priya Subramaniam) in Singapore and other port-jurisdiction counsel as vessel movements dictate. If the vessel transits towards Southeast Asian waters or the Strait of Malacca, Singapore may become the preferred arrest jurisdiction.
(d) Maintain standing arrest instructions with local counsel in key ports, including but not limited to Dubai, Fujairah, Singapore, Piraeus, and any other port identified as a likely destination through AIS monitoring data.
Responsible: Patrick Gallagher (day-to-day monitoring and coordination with Northcape Maritime Advisory); Hannah Brinkley (approval of arrest instructions and coordination with local counsel)
Transfer to Monitoring Phase:
• Vessel tracking alert protocol established and confirmed with Northcape Maritime Advisory Ltd. (Captain Ian Forsyth) — automated alerts to PG and HB
Checklist Items:
• Memo re: M/V Volga Spirit remaining enforcement options prepared and placed on file, including analysis of arrest prospects in UAE, Singapore, and other potential jurisdictions; memo to be current as of the target close date
• Northcape Maritime Advisory vessel valuation updated, or update requested (the most recent formal valuation of the M/V Volga Spirit should be confirmed; if the most recent valuation is more than three months old, a fresh desktop valuation should be requested from Captain Forsyth)
• Beneficial ownership analysis (Dnepr Shipholding Inc. → Oceangate Ventures Ltd. → KMH) confirmed and documented in a form suitable for use in arrest application evidence, supported by the Hartwell Pemberton tracing reports and available corporate registry searches
2.3 Sub-Charterer Receivables Owed to KMH
Estimated Value: Approximately £4,200,000
Background: Through the WFO asset disclosure process and the forensic tracing work conducted by Hartwell Pemberton LLP, a number of receivables owed to KMH by third-party sub-charterers have been identified. These receivables arise under sub-charterparty arrangements entered into by KMH in respect of vessels in its fleet. The specific identities of the sub-charterers and the precise amounts owed have been the subject of ongoing analysis by Hartwell Pemberton, and a final sub-charterer receivables memorandum is in preparation.
Status: Attachment proceedings in respect of these receivables have not yet been commenced. The principal issue is the identification of the appropriate jurisdiction or jurisdictions in which third-party attachment or garnishment proceedings can most efficiently and cost-effectively be pursued. This depends on factors including the domicile and asset location of the sub-charterers, the governing law and jurisdiction clauses in the sub-charterparty contracts, and the practical enforceability of any attachment order.
Action Required:
(a) Finalize identification of specific sub-charterers and amounts from Hartwell Pemberton's analysis. Patrick Gallagher to follow up with Rebecca Saunders (HP) to obtain the final version of the sub-charterer receivables memorandum.
(b) Determine appropriate jurisdiction(s) for third-party attachment or garnishment. This will require analysis of where the sub-charterers are domiciled or maintain assets, and which jurisdictions' procedural rules provide for effective third-party debt attachment.
(c) Instruct relevant local counsel to commence attachment proceedings if the cost-benefit analysis supports pursuit.
Responsible: Patrick Gallagher (analysis and coordination with Hartwell Pemberton); Hannah Brinkley (instructions to local counsel)
Checklist Items:
• Sub-charterer receivables memo (final version) received from Hartwell Pemberton and placed on file
• Decision recorded as to whether to pursue sub-charterer receivable attachment, including a documented cost-benefit analysis relative to the remaining outstanding balance of £15,617,726.03 (the analysis should take into account the estimated costs of attachment proceedings, the likelihood of recovery, and the client's appetite for further enforcement expenditure)
2.4 Post-Award Interest Accrual
Rate: 5.25% per annum simple on £96,450,000 (the principal amount of the Award)
Running From: 29 June 2024 (the day following the date of the Award)
Accrued Through 15 March 2025: £3,607,726.03
Ongoing Accrual: Interest continues to accrue on the unpaid portion of the Award principal at the rate specified in the Award. As partial recoveries reduce the outstanding principal, the base on which interest accrues may be adjusted in accordance with the terms of the Award and applicable law. The interest calculation is to be updated at each recovery event and at the time of final matter close.
It should be noted that the interest calculation is subject to the precise allocation of enforcement recoveries as between the Award principal, the costs award, and accrued interest. The joint C&H / Hartwell Pemberton interest calculation memorandum addresses this allocation in detail.
Checklist Items:
• Final interest calculation prepared and reconciled (joint Hartwell Pemberton / Calderwood & Harkness interest calculation memorandum updated to reflect all recoveries through the target close date of 15 March 2025)
• Client notified of continuing interest accrual on the outstanding balance, including an estimate of the monthly interest accrual rate on the remaining unpaid principal (for the client's internal financial reporting purposes)
SECTION 3: OPPOSING COUNSEL NOTIFICATIONS
This section records the status of notifications to and correspondence with opposing counsel in each jurisdiction. Proper notification of enforcement events and reservation of rights is essential to maintaining the integrity of the enforcement proceedings and TSL's legal position.
3.1 Harkness Whitford & Co. (Lead Counsel for KMH — England & Wales)
Harkness Whitford & Co. has acted as lead counsel for KMH throughout the English enforcement proceedings, including the contested return date hearing on the WFO, the unsuccessful application by KMH to set aside the section 66 permission order, and the third-party debt order proceedings. Relations with the firm have been professional but adversarial, and the firm has been cooperative on procedural matters, including the coordination of the voluntary payment of £7,400,000 received on 3 February 2025.
Checklist Items:
• Final letter sent to Catherine Whitford (Harkness Whitford & Co.) confirming receipt of the voluntary payment of £7,400,000 on 3 February 2025, and expressly reserving all rights of TSL as to the outstanding balance of £15,617,726.03 (including continuing post-award interest accrual)
• Partial WFO discharge correspondence sent to Harkness Whitford & Co., or such correspondence is pending in connection with the partial discharge application described in Section 2.1 above
• Confirm no further correspondence required at this stage (other than in connection with the partial WFO discharge application and any further enforcement steps)
3.2 Vassiliadis & Economou LLC (Local Counsel for KMH — Cyprus)
Vassiliadis & Economou LLC acted as local counsel for KMH in the Cyprus enforcement proceedings before the Nicosia District Court (Case No. 2247/2024). The firm represented KMH in opposing the freezing injunction application, the enforcement order application, and the execution proceedings. All Cyprus enforcement steps have been concluded, and no further proceedings are currently anticipated in Cyprus unless new enforcement action is initiated (for example, in connection with the M/V Volga Spirit, which is registered under the Cyprus flag and whose registered owner, Dnepr Shipholding Inc., may have assets within the Cyprus jurisdiction).
Checklist Items:
• No further active proceedings in Cyprus; no correspondence with Vassiliadis & Economou LLC required at this stage unless new enforcement action is initiated in that jurisdiction
SECTION 4: LOCAL COUNSEL FILE CLOSURES
This section addresses the closing of the engagements with local counsel instructed in each enforcement jurisdiction. For each firm, the section confirms the status of the proceedings, the financial reconciliation, and the file archiving arrangements. Where a firm is being retained on a standby basis for potential future instructions (in particular in connection with the M/V Volga Spirit), this is noted.
4.1 Kyprianos Makrides & Partners (Cyprus)
Status of Proceedings: The enforcement proceedings in Cyprus have been concluded. An enforcement order was granted by the Nicosia District Court on 30 September 2024. Execution steps included the forced sale of Oceangate Ventures Ltd. shares and the attachment and execution against KMH bank accounts held at Marlowe National Bank and Brightmoor Trust Bank. The total recovery from Cyprus was £22,350,000, completed on 8 November 2024. All execution steps in Cyprus have been concluded, and there are no further active proceedings.
KM&P acted with considerable skill and expedition in what were complex and contested proceedings, including an emergency application to prevent the dissipation of funds identified through Hartwell Pemberton's tracing work. The firm's engagement in this matter has been highly effective, and the relationship should be noted favourably for future instruction purposes.
Checklist Items:
• Closing letter sent to KM&P confirming completion of the Cyprus mandate and expressing appreciation for the firm's work on the matter
• Final invoice received from KM&P — €285,000 reconciled against the scope of work and the fee arrangements set out in the local counsel engagement letter; invoice confirmed as paid
• KM&P file archive arrangements confirmed — original Cyprus court orders returned to Calderwood & Harkness LLP, or copies retained by KM&P with confirmation that the file will be archived in accordance with Cyprus Bar Association requirements
• Confirmation received that the Cyprus freezing injunction has been discharged to the extent of the recovery achieved, or that it remains in force in respect of the residual claim (if the latter, the terms and any reporting obligations should be noted)
4.2 Straits Meridian LLP (Singapore)
Status of Proceedings: The Singapore enforcement proceedings have been concluded with a total recovery from Singapore of approximately £36,780,000. The key milestones in the Singapore proceedings were as follows:
(a) Leave to enforce the LCIA Award as a judgment of the Singapore High Court was granted on 6 September 2024 under the International Arbitration Act (Cap. 143A).
(b) A garnishee order absolute was obtained against Pinnacle Bank (Singapore) Ltd. on 18 October 2024, resulting in recovery of SGD $31,200,000 (approximately £18,450,000 at the prevailing exchange rate).
(c) The M/V Crimson Horizon (IMO 9801334, Handymax Bulk Carrier, 37,500 DWT, Liberian flag) was arrested on 20 August 2024 in the port of Singapore. The vessel was subsequently sold by judicial sale on 15 November 2024 for USD $22,800,000. The sale proceeds, after deduction of port and custody costs and the Sheriff's expenses, were received by TSL's solicitors on 2 December 2024, yielding a net recovery of approximately £18,330,000.
All Singapore enforcement steps have been concluded. However, SM is being retained on a standby basis for the potential arrest of the M/V Volga Spirit should that vessel enter Singapore waters or call at a Singapore port.
Checklist Items:
• Closing letter sent to SM confirming completion of the Singapore mandate (subject to potential future instructions regarding the M/V Volga Spirit if the vessel calls at Singapore or enters Singapore territorial waters)
• Final invoice received from SM — SGD $480,000 reconciled against the scope of work and fee arrangements; invoice confirmed as paid
• SM file archive arrangements confirmed — all documents to be archived in accordance with the Law Society of Singapore's practice directions; copies of key documents to be transmitted to Calderwood & Harkness LLP before archiving
• Judicial sale completion certificate and all related court orders (arrest warrant, sale order, order for distribution of sale proceeds) received from SM and filed in the C&H matter records
• SM retained on standby for potential arrest of M/V Volga Spirit if the vessel enters Singapore jurisdiction — standby arrangement confirmed in writing with David Teo Wei Lin
4.3 Al-Rashid Hatem & Associates (UAE)
Status of Proceedings: The UAE enforcement proceedings have been concluded with a total recovery of AED 53,400,000 (approximately £11,340,000 at the prevailing exchange rates). The key milestones in the UAE proceedings were as follows:
(a) A precautionary attachment order was obtained from the Dubai Court of First Instance on 28 August 2024, freezing the bank accounts and trade receivables of Korinthian DMCC held at Emirates Gulf Commercial Bank PJSC ("EGCB").
(b) An enforcement order was granted on 20 November 2024, permitting execution against the attached assets.
(c) Execution was carried out between 10 December 2024 and 14 January 2025, resulting in the recovery of AED 53,400,000 from Korinthian DMCC's accounts and receivables at EGCB.
ARH is being retained on a standby basis for the potential arrest of the M/V Volga Spirit in Fujairah or any other UAE port. Given the vessel's last reported location at Fujairah anchorage, the arrest standby instruction to ARH is of particular importance and should be treated as a priority item.
Checklist Items:
• Closing letter sent to ARH confirming completion of the Dubai enforcement mandate (subject to standby instructions regarding the M/V Volga Spirit arrest)
• Final invoice received from ARH — AED 620,000 reconciled against the scope of work and fee arrangements; invoice confirmed as paid
• ARH file archive arrangements confirmed — all documents to be archived in accordance with UAE regulatory requirements; copies of key documents to be transmitted to Calderwood & Harkness LLP before archiving
• ARH retained on standby for the arrest of M/V Volga Spirit in Fujairah or other UAE port — standby arrangement confirmed in writing with Tariq Al-Rashid, including confirmation of the documentation required and the estimated timeframe for effecting arrest once instruction is given
• UAE court orders and execution records received from ARH and filed in the C&H matter records (including the precautionary attachment order, the enforcement order, and the execution completion records)
SECTION 5: EXPERT AND ADVISOR FILE CLOSURES
This section addresses the closing of the engagements with the expert firms and advisors instructed in connection with the enforcement proceedings.
5.1 Hartwell Pemberton LLP (Forensic Accountants)
Scope of Engagement: Hartwell Pemberton was engaged to conduct a comprehensive global asset tracing exercise in respect of KMH and its related entities. The scope of work encompassed the following:
(a) Global asset tracing of KMH, its subsidiaries, and related entities, including analysis of corporate structures, bank account holdings, vessel ownership, real property, and other asset classes.
(b) Preparation of asset-tracing reports: a preliminary findings report dated 15 August 2024, and an updated findings report dated 1 October 2024.
(c) Analysis of evidence of asset dissipation by KMH and its principals, in support of the WFO application and continuation hearing.
(d) Post-award asset movement analysis (dated 25 November 2024), tracking the flow of funds and assets within the KMH group following the rendering of the Award.
(e) Interest calculations in connection with the Award and enforcement recoveries.
The work of Hartwell Pemberton has been instrumental to the success of the enforcement campaign. The preliminary and updated asset-tracing reports identified the key assets against which enforcement was pursued, including the bank accounts at Meridian Trust Bank, Pinnacle Bank, Marlowe National Bank, Brightmoor Trust Bank, and Emirates Gulf Commercial Bank; the Oceangate Ventures Ltd. shareholding; and the vessels M/V Crimson Horizon and M/V Volga Spirit. The post-award asset movement analysis was critical in identifying and evidencing the dissipation of assets by KMH's principals, which was a significant factor in the Court's decision to continue the WFO and to dismiss KMH's set-aside application.
Checklist Items:
• Final HP invoice received — £345,000 reconciled against the engagement terms and scope of work; invoice confirmed as paid
• All HP reports placed on file and verified as complete:
• Preliminary findings report (dated 15 August 2024)
• Updated findings report (dated 1 October 2024)
• Post-award asset movement analysis (dated 25 November 2024)
• Interest calculation memorandum (final version — to be filed upon receipt)
• HP engagement letter and terms of business confirmed and placed on the matter file for retention
• HP notified in writing that the active engagement has concluded, with the understanding that HP may be re-engaged if further tracing work is needed in connection with the remaining balance collection (in particular, the sub-charterer receivables analysis and any new asset identification)
• Confirm HP retains no original client documents — all originals have been returned to Calderwood & Harkness LLP, or HP holds copies only (confirmation to be obtained in writing from Rebecca Saunders)
5.2 Northcape Maritime Advisory Ltd. (Shipping Valuation Experts)
Scope of Engagement: Northcape Maritime Advisory was engaged to provide vessel valuations for the purposes of enforcement and arrest proceedings. Specifically, Northcape provided:
(a) A valuation report in respect of the M/V Crimson Horizon (IMO 9801334), which supported the arrest application in Singapore and the judicial sale process.
(b) AIS tracking and monitoring services for the M/V Volga Spirit (IMO 9756892), including regular position reports and movement alerts.
(c) A preliminary desktop valuation of the M/V Volga Spirit, which informed the enforcement strategy and the assessment of whether arrest of that vessel would be proportionate to the outstanding claim.
Northcape continues to provide AIS tracking and monitoring services for the M/V Volga Spirit and will be retained on a standby basis for the preparation of an updated formal valuation report if an arrest opportunity arises.
Checklist Items:
• Final Northcape invoice reconciled and paid (the Northcape fees are included within the total disbursements figure of £412,000)
• All Northcape valuation reports placed on file, including the M/V Crimson Horizon valuation report and the M/V Volga Spirit preliminary desktop valuation
• Northcape retained on standby for the preparation of an updated formal valuation of the M/V Volga Spirit if an arrest opportunity arises — standby arrangement confirmed with Captain Ian Forsyth
SECTION 6: FINAL BILLING AND FINANCIAL CLOSE
This section addresses all financial matters relating to the close of the matter, including the reconciliation of Calderwood & Harkness LLP's fees, the success fee calculation, disbursements, local counsel fees, expert fees, and client account entries. All amounts should be verified by the Finance Department and approved by Linda Osei (Billing Partner) before the matter is transitioned to Closing/Monitoring status.
6.1 Calderwood & Harkness LLP Fees
Fee Arrangements:
Hourly Rates (Enforcement Phase):
The total fees billed to date of £3,870,000 represent the aggregate of all invoices issued to TSL for Calderwood & Harkness LLP's time charges during the enforcement phase, from the opening of the engagement on 12 September 2024 through the date of this checklist. This amount is within the agreed fee cap of £4,200,000, with £330,000 remaining available under the cap.
A final invoice is to be prepared for the time charges incurred between the date of the last invoice and the target close date of 15 March 2025. This final invoice must be reviewed and approved by Linda Osei (Billing Partner) before issuance. It is critical that the total of all fees invoiced, including the final invoice, remains within the £4,200,000 cap.
If the monitoring phase involves any material expenditure of time (for example, in connection with the M/V Volga Spirit arrest, the sub-charterer receivable attachment proceedings, or the WFO partial discharge application), consideration must be given to whether this monitoring work falls within the existing fee cap or requires a separate fee arrangement with the client. A discussion on this point should be initiated with Ioanna Christodoulou and Elena Stavridis at the earliest opportunity.
Checklist Items:
• Final time entries posted for all timekeepers (Samuel Eklund, Linda Osei, Hannah Brinkley, Patrick Gallagher) through the target close date of 15 March 2025
• Pre-bill prepared and reviewed by Linda Osei (Billing Partner) for accuracy, compliance with the fee cap, and appropriate narrative descriptions
• Final invoice prepared and issued to TSL, addressed to Ioanna Christodoulou (General Counsel) and Elena Stavridis (CFO) at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece
• Confirm total fees (all invoices, including the final invoice) remain within the £4,200,000 cap
• Note: If the monitoring phase continues (M/V Volga Spirit monitoring, sub-charterer receivable proceedings, WFO partial discharge), confirm with the client whether monitoring work falls within the existing fee cap (£330,000 remaining) or requires a new or supplemental engagement letter with separate fee terms
6.2 Success Fee Calculation
The engagement letter provides for a success fee of 2.5% of amounts recovered in excess of £80,000,000. This fee is payable in addition to the capped hourly fees and is calculated on the total amounts actually recovered by TSL through the enforcement proceedings.
Calculation:
The success fee of £414,750 is payable upon confirmation of the total recovery figure. It should be invoiced separately from the hourly fee invoices in order to maintain a clear distinction between the two fee components for the client's accounting purposes and for the firm's internal records.
It is important to note that if further recoveries are made during the monitoring phase — for example, through the arrest and sale of the M/V Volga Spirit or the attachment of sub-charterer receivables — the success fee will need to be recalculated on the updated total recovery figure. Any additional success fee arising from further recoveries should be invoiced at the time of such recovery.
Checklist Items:
• Success fee calculation verified and documented (cross-referenced to the final recovery reconciliation memorandum)
• Success fee invoice in the amount of £414,750 prepared and issued separately to TSL
• Note: If further recoveries are made during the monitoring phase, the success fee is to be recalculated on the updated total recovery figure, and a supplemental success fee invoice issued accordingly
6.3 Disbursements
The disbursements figure of £412,000 includes court fees (filing fees for the English Commercial Court proceedings, the Singapore High Court originating summons, and the Dubai Court of First Instance proceedings), travel costs (including travel to Singapore for the M/V Crimson Horizon arrest and judicial sale proceedings, and travel to Dubai and Fujairah for the UAE enforcement proceedings), and expert fees (Northcape Maritime Advisory vessel valuation and tracking fees). The disbursements figure does not include local counsel fees (which are accounted for separately in Section 6.4 below) or Hartwell Pemberton's forensic accounting fees (which are accounted for separately in Section 6.5 below).
Checklist Items:
• All disbursement receipts on file and reconciled against the disbursement ledger
• Final disbursement invoice issued to client, with an itemized schedule of all disbursements incurred during the enforcement phase
6.4 Local Counsel Fee Reconciliation
The following table summarizes the fees invoiced by local counsel in each enforcement jurisdiction:
Under the terms of the engagement letter, local counsel fees are passed through to the client as disbursements and are not included in the £4,200,000 fee cap. Each local counsel invoice should be verified against the scope of work performed and the fee arrangements set out in the relevant local counsel engagement letter before being passed through to the client.