CONFIDENTIAL — PREPARED BY CALDERWOOD & HARKNESS LLP FOR AL-RASHID HATEM & ASSOCIATES THIS ENGLISH-LANGUAGE DRAFT SERVES AS THE MASTER FROM WHICH THE CERTIFIED ARABIC TRANSLATION WILL BE PREPARED FOR FILING
IN THE DUBAI COURT OF FIRST INSTANCE EMIRATE OF DUBAI UNITED ARAB EMIRATES
APPLICATION FOR PRECAUTIONARY ATTACHMENT (حجز تحفظي)
Related Case No. 1893/2024 (Enforcement Application filed 22 August 2024)
Date of Application: 25 August 2024
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I. INTRODUCTION AND PRAYER FOR RELIEF
1. This Application is made by Thalassa Shipping & Logistics SA ("TSL" or the "Applicant"), a Société Anonyme organized under the laws of the Hellenic Republic, by and through its duly appointed legal representatives, Al-Rashid Hatem & Associates, pursuant to Articles 252 through 257 of UAE Federal Law No. 11 of 1992 (the Civil Procedure Law), as amended (the "Civil Procedure Law"), for an order of precautionary attachment (حجز تحفظي) over the assets of Korinthian DMCC (the "Respondent") held at Emirates Gulf Commercial Bank PJSC (the "Bank" or "EGCB").
2. Specifically, the Applicant seeks an order of precautionary attachment over:
(a) all bank accounts, deposits (whether demand, time, fixed, or otherwise), and credit balances held by or in the name of Korinthian DMCC at Emirates Gulf Commercial Bank PJSC, Dubai Branch, Gate Village 3, DIFC, Dubai, UAE, in any and all currencies; and
(b) all receivables, trade debts, and amounts owed to Korinthian DMCC by third parties that are passing through, held at, or otherwise payable through EGCB, including but not limited to charter hire receivables, freight payments, and demurrage claims.
3. The attachment is sought in support of enforcement proceedings already commenced before this Honourable Court in Case No. 1893/2024, filed on 22 August 2024, in which the Applicant seeks recognition and enforcement of a final arbitral award rendered under the auspices of the London Court of International Arbitration ("LCIA"), bearing reference number LCIA No. 224718, dated 28 June 2024 (the "Award").
4. The total amount of the Applicant's claim, comprising the sums awarded in the Award and the costs allocated to the award debtor, is as follows:
5. In addition to the foregoing principal sums, post-award interest continues to accrue at the rate of 5.25% per annum simple on the unpaid Award amount from 29 June 2024 until the date of full and final payment. The Applicant further seeks recovery of all enforcement costs incurred in these proceedings.
6. Prayer for Relief: The Applicant respectfully requests that this Honourable Court issue an order attaching all sums, deposits, receivables, and credits standing to the account of or owed to Korinthian DMCC at Emirates Gulf Commercial Bank PJSC, up to the full amount of the claim — being £108,600,000 (or the equivalent in AED, USD, or other currency at the prevailing exchange rate), together with accrued post-award interest and enforcement costs — pending the determination of the enforcement application in Case No. 1893/2024. The Applicant further requests that the attachment be granted on an ex parte basis without prior notice to the Respondent, for the reasons set out in Section V.D below, and that the Respondent be notified of the attachment order promptly following its execution.
II. THE PARTIES
A. The Applicant — Thalassa Shipping & Logistics SA
7. The Applicant, Thalassa Shipping & Logistics SA ("TSL"), is a Société Anonyme (SA) organized and existing under the laws of the Hellenic Republic. TSL was incorporated and is registered at Piraeus, Greece, with its registered address at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece. Its Greek tax identification number (AFM) is EL-801456729.
8. TSL is a private shipping and logistics company founded in 1987 by the Papadimitriou family. Over the course of nearly four decades, TSL has grown into a substantial enterprise in the international shipping industry, operating a fleet of thirty-four (34) vessels comprising bulk carriers, tankers, and container feeders. TSL provides integrated logistics services across the Mediterranean Sea, the Black Sea, and the Arabian Gulf. For the financial year ended 31 December 2023, TSL reported annual revenues of approximately €620 million.
9. The ownership of TSL is as follows: seventy-two percent (72%) of the issued share capital is held by the Papadimitriou family trust, and the remaining twenty-eight percent (28%) is held by Aegean Capital Partners SA, a Greek investment firm. The Chairman and Chief Executive Officer of TSL is Mr. Nikolaos Papadimitriou. The Chief Financial Officer is Ms. Elena Stavridis. The General Counsel is Ms. Ioanna Christodoulou.
10. TSL has duly authorized Al-Rashid Hatem & Associates to act on its behalf in these proceedings in the UAE, pursuant to a power of attorney executed by Mr. Nikolaos Papadimitriou in his capacity as Chairman and CEO. The power of attorney has been duly notarized, apostilled, and legalized for use in the UAE. A copy is annexed hereto as Exhibit 10.
B. The Respondent — Korinthian DMCC
11. The Respondent, Korinthian DMCC ("Korinthian DMCC" or the "Respondent"), is a free zone company incorporated in the Dubai Multi Commodities Centre ("DMCC") in the Emirate of Dubai, UAE. Its registered address is Unit 3407, Almas Tower, Jumeirah Lakes Towers (JLT), Dubai, UAE.
12. Korinthian DMCC is a subsidiary or controlled entity of Korinthian Maritime Holdings Ltd. ("KMH"), the award debtor in LCIA Arbitration No. 224718. Korinthian DMCC serves as KMH's operational hub for the Arabian Gulf region, and it holds operational funds and receivables related to KMH's shipping and chartering activities in the region. Specifically, Korinthian DMCC is the entity through which KMH channels charter hire payments, freight receivables, and operational revenues generated by its fleet operations in the Arabian Gulf and wider Middle Eastern markets.
13. The corporate relationship between Korinthian DMCC and KMH is set out in detail in Section V.C below. In summary, Korinthian DMCC is used as a conduit for KMH's regional operations and holds funds that are properly attributable to KMH for enforcement purposes. The corporate registry extracts establishing this relationship are annexed hereto as Exhibit 7.
C. The Award Debtor — Korinthian Maritime Holdings Ltd.
14. Korinthian Maritime Holdings Ltd. ("KMH") is a private limited company incorporated in Nicosia, Cyprus, bearing registration number HE 387421. Its registered address is 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.
15. KMH is a vessel-owning and chartering company that controls approximately eighteen (18) dry-bulk carriers through a network of single-purpose vehicle subsidiaries registered in various jurisdictions, including the British Virgin Islands, Cyprus, Singapore, and the UAE. The ultimate beneficial owner of KMH is Mr. Andrei Volkov, who exercises de facto control over the company and its subsidiaries. The directors of KMH are Mr. Sergei Volkov (the son of Andrei Volkov) and Mr. Alexei Demidov, who serves as Director of Fleet Operations. The Chief Financial Officer of KMH is Ms. Marina Kazakova.
16. Prior to the commencement of the underlying dispute, KMH's estimated net asset value was approximately USD $280 million. However, as set out in detail in Section V.B below, KMH has engaged in a systematic pattern of post-award asset dissipation designed to frustrate the enforcement of the Award.
17. KMH is represented in the English proceedings by Harkness Whitford & Co., Solicitors, of 12 Fetter Lane, London EC4A 1JP (SRA No. 614823).
D. The Third Party — Emirates Gulf Commercial Bank PJSC
18. The third party in this application is Emirates Gulf Commercial Bank PJSC ("EGCB" or the "Bank"), a public joint stock company (PJSC) organized under the laws of the UAE, with its head office at Al Maryah Island, Abu Dhabi, UAE.
19. The relevant branch for the purposes of this application is the Dubai Branch of EGCB, located at Gate Village 3, DIFC, Dubai, UAE. It is at this branch that Korinthian DMCC maintains accounts holding operational funds, and it is through this branch that receivables related to KMH's Arabian Gulf operations are channeled.
20. EGCB is named as the garnishee or custodian of funds in this application in its capacity as the bank at which the Respondent's accounts are held. The Applicant seeks an order directing EGCB to freeze all accounts, deposits, and sums held in the name of or for the benefit of Korinthian DMCC, and to refrain from releasing, transferring, or paying out any such sums without further order of this Court.
III. BACKGROUND — THE UNDERLYING DISPUTE AND THE LCIA AWARD
A. The Charter-Party Agreements
21. Between 2019 and 2021, Thalassa Shipping & Logistics SA entered into three separate time charter-party agreements with Korinthian Maritime Holdings Ltd. for the charter of three dry-bulk carriers. The details of each charter-party are as follows:
(a) M/V *Aegean Fortuna* (IMO 9784521): A Supramax Bulk Carrier of 58,200 deadweight tonnage (DWT), registered under the flag of the Republic of the marshall Islands. The time charter-party for this vessel was signed on 15 March 2019.
(b) M/V *Crimson Horizon* (IMO 9801334): A Handymax Bulk Carrier of 37,500 DWT, registered under the flag of the Republic of Liberia. The time charter-party for this vessel was signed on 22 January 2020.
(c) M/V *Volga Spirit* (IMO 9756892): A Panamax Bulk Carrier of 76,400 DWT, registered under the flag of the Republic of Cyprus. The time charter-party for this vessel was signed on 10 June 2021.
22. Each of the three charter-party agreements was governed by English law and contained an arbitration clause providing for the resolution of disputes by arbitration under the rules of the London Court of International Arbitration (LCIA), with London, England, designated as the seat of arbitration. Certified copies of the three charter-party agreements, together with certified Arabic translations, are annexed hereto as Exhibit 2.
23. The aggregate value of the three charters over their full contractual terms was substantial, reflecting the significant commercial relationship between the parties and the scale of the operations involved. TSL performed its obligations under each charter-party faithfully and in full, providing the vessels in seaworthy condition and maintaining them in accordance with the charter-party requirements.
B. KMH's Breaches
24. Beginning in mid-2022, KMH engaged in a pattern of repudiatory breach of its obligations under the three charter-party agreements. The breaches, which are described in detail in the Award, may be summarized as follows:
(a) Wrongful early redelivery of M/V *Aegean Fortuna*: In flagrant breach of the time charter-party dated 15 March 2019, KMH wrongfully redelivered the M/V Aegean Fortuna to TSL fourteen (14) months prior to the contractual expiry of the charter period. The vessel was redelivered on 18 June 2022, leaving TSL to bear the consequential losses arising from the premature termination of the charter, including lost hire for the remaining charter period and the costs of repositioning the vessel.
(b) Failure to pay hire on M/V *Crimson Horizon*: KMH ceased making hire payments under the time charter-party for the M/V Crimson Horizon with effect from 1 July 2022. Despite repeated demands for payment, KMH allowed hire arrears of £4,280,000 to accrue before TSL was compelled to withdraw the vessel from KMH's service on 15 September 2022, exercising its contractual right to do so in the face of KMH's persistent default.
(c) Fabricated off-hire deductions on M/V *Volga Spirit*: KMH made a series of improper and fabricated deductions from hire payments due under the time charter-party for the M/V Volga Spirit, claiming that the vessel was off-hire during periods when it was, in fact, fully operational and at KMH's disposal. The total amount of the fabricated off-hire deductions was approximately £2,740,000. The LCIA Tribunal found, on the evidence before it, that these deductions were not merely erroneous but were made in bad faith, as part of KMH's broader strategy of repudiating its contractual obligations to TSL.
25. Taken together, KMH's breaches constituted a wholesale repudiation of its contractual relationship with TSL, causing TSL to suffer losses in excess of £96 million. TSL acted reasonably in mitigating its losses, including by seeking alternative employment for its vessels in a depressed market.
C. The LCIA Arbitration
26. In light of KMH's refusal to engage in any meaningful settlement discussions and its continued denial of liability, TSL commenced arbitration proceedings against KMH under the LCIA Rules. The key procedural milestones in the arbitration were as follows:
(a) LCIA Case Reference: No. 224718.
(b) Request for Arbitration: TSL filed its Request for Arbitration with the LCIA on 14 November 2022.
(c) Constitution of the Tribunal: The Tribunal was constituted on 8 February 2023. The members of the Tribunal were:
(i) Presiding Arbitrator: Sir Malcolm Fenton-Clarke, appointed by the LCIA Court;
(ii) Co-Arbitrator (Claimant-nominated): Professor Athena Drakopoulos;
(iii) Co-Arbitrator (Respondent-nominated): Dr. Henrik Dalmqvist.
The Tribunal Secretary was Ms. Fiona Beckett.
(d) Evidentiary Hearing: The evidentiary hearing took place over ten (10) hearing days, from 11 September 2023 through 22 September 2023, at the International Dispute Resolution Centre (IDRC) in London. During the hearing, the Tribunal heard testimony from factual and expert witnesses called by both parties and received extensive documentary evidence, including contemporaneous correspondence, internal communications, accounting records, and market data.
(e) Seat of Arbitration: London, England.
27. The arbitration was conducted in accordance with the LCIA Rules then in force. KMH participated fully in the arbitration, being represented throughout by Harkness Whitford & Co. and by leading and junior counsel. The proceedings were fair and KMH was afforded every opportunity to present its case. The Tribunal gave careful consideration to all arguments and evidence submitted by both parties before rendering its Award.
D. The Final Award
28. On 28 June 2024, the Tribunal issued its Final Award. The Tribunal found in favour of TSL on all material claims and awarded TSL the following sums:
29. The Tribunal further determined that costs should follow the event, and ordered KMH to bear eighty-five percent (85%) of the total costs of the arbitration and to pay eighty-five percent (85%) of TSL's legal costs. The costs award is as follows:
30. Accordingly, the Grand Total of the sums awarded to TSL and payable by KMH under the Award is £108,600,000, equivalent to approximately USD $135,142,260 at the exchange rate prevailing on the date of the Award (£1 = USD $1.2441 as of 28 June 2024).
31. The Tribunal further ordered that post-award interest shall accrue on all unpaid sums at the rate of 5.25% per annum simple from 29 June 2024 until the date of full and final payment.
32. A certified copy of the Award, together with a certified Arabic translation, is annexed hereto as Exhibit 1. A certificate from the LCIA Registrar confirming that the Award is final and binding is annexed hereto as Exhibit 3.
33. Despite the issuance of a formal demand for payment served by Calderwood & Harkness LLP upon KMH's English solicitors, Harkness Whitford & Co., on 8 July 2024, KMH has failed and refused to satisfy the Award voluntarily, whether in whole or in part. A copy of the demand letter is annexed hereto as Exhibit 4. KMH has not made any payment whatsoever in respect of the Award.
34. It is noted that KMH filed an application to set aside the Award in the courts of England and Wales on 19 August 2024. However, under English law (Arbitration Act 1996, ss. 67–69), the filing of a set-aside application does not operate as an automatic stay of enforcement. No order staying enforcement has been made by the English courts, and the Award remains final and binding. The pending set-aside application has no bearing on this Honourable Court's jurisdiction to grant conservatory relief under UAE law, nor does it diminish the Applicant's entitlement to seek precautionary measures to preserve assets pending the outcome of the enforcement proceedings.
IV. LEGAL BASIS FOR PRECAUTIONARY ATTACHMENT
A. UAE Civil Procedure Law — Articles 252–257
35. The legal foundation for this application is Articles 252 through 257 of UAE Federal Law No. 11 of 1992 (the Civil Procedure Law), as amended, which govern the grant of precautionary attachment orders (حجز تحفظي) by the UAE courts.
36. Article 252 of the Civil Procedure Law provides that a creditor may apply to the court for a precautionary attachment over the movable and immovable property of the debtor, including monies, deposits, and receivables held by third parties, where the creditor has reason to fear that the debtor may conceal, transfer, or dissipate assets in order to frustrate the satisfaction of the creditor's claim. The requirements for the grant of a precautionary attachment under Article 252 are as follows:
(i) The applicant must have a claim that is due and ascertainable, or likely to be ascertained. The Applicant submits that this requirement is clearly satisfied. TSL holds a final and binding arbitral award in the amount of £108,600,000 (inclusive of costs), rendered by a duly constituted LCIA tribunal after a full evidentiary hearing. The claim is not merely ascertainable or likely to be ascertained — it has been definitively ascertained by the Tribunal and reduced to a specific monetary sum.
(ii) There must be reasons to fear that the debtor will remove, conceal, or dissipate assets. As set out in detail in Section V.B below, there is compelling evidence that the award debtor, KMH, and its subsidiaries (including Korinthian DMCC) have engaged in a systematic post-award campaign of asset dissipation, including the transfer of funds to entities controlled by the ultimate beneficial owner and the attempted sale of vessels to frustrate enforcement. The English Commercial Court has already found a sufficient risk of dissipation to justify the grant of a worldwide freezing order.
(iii) The application must be supported by documentary evidence establishing the prima facie validity of the claim. The Applicant has annexed to this application comprehensive documentary evidence, including a certified copy of the Award, the underlying charter-party agreements, the LCIA Registrar's certificate, the English worldwide freezing order, and the forensic accounting reports tracing the flow of funds through Korinthian DMCC's EGCB accounts.
37. Article 253 of the Civil Procedure Law provides that the attachment may be ordered over debts and movable property owned by the debtor that are in the possession of a third party. This provision is directly applicable to the present case, in which the Applicant seeks attachment over funds held by Korinthian DMCC (an entity within the KMH corporate group and attributable to the award debtor) at EGCB (the third party / garnishee). EGCB, as the custodian of Korinthian DMCC's accounts, holds movable property (namely, monetary deposits and credit balances) that are subject to attachment under Article 253.
38. The Civil Procedure Law further provides that the court may grant the attachment on an ex parte basis (that is, without prior notice to the debtor) where the circumstances of the case require it, including where prior notice would defeat the purpose of the attachment by enabling the debtor to dissipate or transfer the assets in question. As set out in Section V.D below, the Applicant respectfully submits that ex parte relief is both necessary and appropriate in this case.
B. UAE Federal Law No. 6 of 2018 (UAE Arbitration Law)
39. Article 43 of UAE Federal Law No. 6 of 2018 (the UAE Arbitration Law) empowers the competent court to order interim and conservatory measures in support of arbitration proceedings and, by necessary implication, in support of the enforcement of arbitral awards, whether domestic or foreign. The precautionary attachment sought in this application is a conservatory measure of precisely the kind contemplated by Article 43. Its purpose is to preserve the Respondent's assets within the UAE pending the determination of the enforcement application in Case No. 1893/2024, thereby ensuring that the Award, once recognized and enforced by this Court, can be satisfied from assets located in this jurisdiction.
40. The grant of conservatory measures in aid of arbitration enforcement is consistent with the UAE's strong pro-arbitration policy, as reflected in the UAE Arbitration Law and in the UAE's accession to the New York Convention (discussed below). The UAE courts have repeatedly recognized that the effectiveness of the arbitral process depends upon the availability of provisional measures to safeguard the fruits of the award.
C. New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958)
41. The UAE acceded to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York on 10 June 1958 (the "New York Convention"), by means of Federal Decree No. 43 of 2006. The New York Convention has been in force in the UAE since 19 November 2006.
42. The Award qualifies as a "foreign arbitral award" within the meaning of the New York Convention, having been rendered in London, England — a contracting state to the Convention — in an arbitration conducted under the LCIA Rules. Both the United Kingdom and the UAE are contracting states to the New York Convention. Accordingly, the Award is entitled to recognition and enforcement in the UAE in accordance with the Convention and applicable UAE law.
43. The precautionary attachment sought in this application is a protective measure that is fully consistent with the obligations of the UAE under the New York Convention. Article III of the Convention requires each contracting state to "recognize arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon." The availability of ancillary procedural mechanisms under domestic law — including precautionary attachment orders — is expressly contemplated by Article III, which permits the application of domestic procedural rules provided that they do not impose "substantially more onerous conditions" than those applicable to domestic awards.
44. By granting the precautionary attachment, this Court will ensure that the enforcement proceedings in Case No. 1893/2024 are not rendered nugatory by the dissipation of the Respondent's assets in the interim, thereby giving full effect to the UAE's obligations under the New York Convention and to the pro-enforcement policy that animates both the Convention and UAE law.
V. GROUNDS FOR GRANTING THE PRECAUTIONARY ATTACHMENT
A. The Applicant Has an Ascertained and Due Claim
45. The first requirement for the grant of a precautionary attachment under Article 252 of the Civil Procedure Law — that the applicant must have a claim that is due and ascertainable — is amply satisfied in this case.
46. TSL holds a final and binding arbitral award, LCIA Award No. 224718, dated 28 June 2024, in the total amount of £108,600,000 (comprising the principal award of £96,450,000 and costs of £12,150,000). The Award was rendered by a duly constituted three-member LCIA tribunal after a comprehensive evidentiary hearing lasting ten days. The Tribunal carefully considered all of the evidence and arguments submitted by both parties before arriving at its decision. The Award sets out the Tribunal's reasoning in detail and quantifies with precision the sums owed by KMH to TSL.
47. The Award is not subject to any pending appeal or set-aside proceeding that would affect its finality or enforceability. While KMH has filed an application to set aside the Award in the English courts (on 19 August 2024), such application does not operate as an automatic stay of enforcement under English law (Arbitration Act 1996, ss. 67–69), and no order staying enforcement has been granted. As a matter of UAE law, the pendency of a challenge to an award at the seat does not preclude the UAE courts from ordering conservatory measures to preserve assets pending enforcement, particularly where — as here — the grounds for challenge have not been articulated with any specificity and appear to be dilatory in nature.
48. The LCIA Registrar has issued a certificate confirming that the Award is final and binding (annexed as Exhibit 3). Post-award interest continues to accrue at the rate of 5.25% per annum simple on all unpaid sums from 29 June 2024.
49. Despite a formal demand for payment served on KMH's English solicitors on 8 July 2024 (annexed as Exhibit 4), KMH has made no payment whatsoever in satisfaction of the Award. Nearly two months have elapsed since the date of the Award, during which KMH has not even acknowledged its obligation to pay, let alone taken any steps towards compliance. The Applicant's claim is therefore not only ascertained and due, but is demonstrably unsatisfied.
B. Real Risk of Dissipation and Concealment of Assets
50. The second requirement for the grant of a precautionary attachment — that there must be reasons to fear that the debtor will remove, conceal, or dissipate assets — is also clearly established on the evidence before this Court. The Applicant submits that the risk of dissipation is not merely theoretical or speculative; it is real, present, and supported by concrete evidence of conduct already undertaken by KMH and its affiliates.
51. The evidence of KMH's systematic post-award asset dissipation includes the following:
(a) Post-award fund transfers: In the period between the date of the Award (28 June 2024) and the filing of enforcement proceedings, KMH and its subsidiaries have transferred substantial sums from their accounts to entities controlled by Mr. Andrei Volkov, the ultimate beneficial owner of KMH. These transfers have no apparent commercial justification and appear designed to place funds beyond the reach of TSL's enforcement efforts. The details of these transfers have been identified through asset tracing conducted by Hartwell Pemberton LLP, forensic accountants, of 25 Old Broad Street, London EC2N 1HN, and are set out in the reports annexed as Exhibit 8.
(b) Attempted sale of vessels: KMH has attempted to sell vessels owned through its single-purpose vehicle subsidiaries in order to frustrate enforcement. In particular, KMH has attempted to sell the M/V Crimson Horizon through Korinthian Bulkers (Singapore) Pte. Ltd., one of its Singapore-incorporated subsidiaries. The sale was evidently timed to coincide with the commencement of enforcement proceedings and was designed to strip valuable assets from the KMH group before they could be reached by TSL.
(c) Complex multi-jurisdictional corporate structure: KMH operates through a complex web of subsidiary and affiliated entities registered across multiple jurisdictions, including the British Virgin Islands, Cyprus, Singapore, and the UAE. This structure is designed to obscure the true ownership of assets and to fragment them across jurisdictions, making enforcement of the Award as difficult and costly as possible. The entities within this structure include, among others:
(i) Dnepr Shipholding Inc., a BVI company bearing company number 2014876;
(ii) Oceangate Ventures Ltd., a Cyprus company bearing registration number HE 401293;
(iii) Korinthian Bulkers (Singapore) Pte. Ltd.; and
(iv) Korinthian DMCC, the Respondent in this application.
(d) Korinthian DMCC as a conduit for regional revenues: Korinthian DMCC serves as the conduit for KMH's operational revenues in the Arabian Gulf region. Charter hire payments, freight receivables, and other operational funds flow through Korinthian DMCC's accounts at EGCB. Without the grant of a precautionary attachment, these funds are at imminent risk of being transferred out of the UAE, either to KMH or to other entities within the Volkov-controlled corporate network, before the enforcement application can be determined. Given the ease with which funds can be transferred electronically across borders, this risk is acute.
52. The Applicant's concern about asset dissipation is not based solely on its own assessment of the situation. Significantly, the English Commercial Court has already independently evaluated the risk of dissipation and found it to be sufficient to justify the grant of a worldwide freezing order against KMH. On 16 July 2024, Mr. Justice Ashworth, sitting in the Commercial Court of England and Wales, granted a worldwide freezing order in Claim No. CL-2024-000487, restraining KMH from dealing with, diminishing the value of, or disposing of its assets worldwide up to the value of £108,600,000. The freezing order was subsequently continued with modifications at the return date hearing on 30 July 2024, after KMH had been given the opportunity to contest the order. Certified copies of the freezing order and the order continuing it are annexed hereto as Exhibit 5, together with certified Arabic translations.
53. The findings of the English Commercial Court regarding the risk of dissipation are directly relevant to this application. While this Honourable Court will, of course, make its own independent assessment under UAE law, the fact that a court of competent jurisdiction has already found a sufficient risk of dissipation to justify the most stringent form of interim relief available under English law is powerful corroborative evidence in support of the Applicant's case.
54. In addition, the asset tracing conducted by Hartwell Pemberton LLP has specifically identified accounts held by Korinthian DMCC at EGCB that contain operational funds and through which receivables flow. Extracts from the asset tracing reports are annexed hereto as Exhibit 6. These reports demonstrate the flow of funds through Korinthian DMCC's EGCB accounts and identify specific sums that are at risk of dissipation.
C. Korinthian DMCC's Connection to the Award Debtor
55. The Applicant recognizes that the Award was rendered against Korinthian Maritime Holdings Ltd. (KMH) and not against Korinthian DMCC directly. However, the Applicant submits that the precautionary attachment may properly be ordered over the assets of Korinthian DMCC at EGCB on two alternative bases.
56. First, Korinthian DMCC is an entity within the KMH corporate group, controlled by the same beneficial owners — the Volkov family, and principally Mr. Andrei Volkov. KMH uses Korinthian DMCC as its operational hub for the Arabian Gulf, channeling charter hire, freight receivables, and operational revenues through its EGCB accounts. Under UAE law, the precautionary attachment may be ordered over assets held by entities that are alter egos or controlled subsidiaries of the judgment debtor where the corporate veil is being used to frustrate the enforcement of legitimate claims. The corporate registry extracts annexed as Exhibit 7 demonstrate that Korinthian DMCC is not an independent entity acting at arm's length from KMH, but rather a subsidiary or controlled affiliate that is used as an instrumentality of KMH and that holds assets properly attributable to KMH.
57. The evidence supporting the alter ego / veil piercing analysis includes: (a) common ultimate beneficial ownership (Mr. Andrei Volkov); (b) overlapping directorships and management between KMH and Korinthian DMCC; (c) the commingling of funds between KMH and Korinthian DMCC; (d) the absence of genuine arm's-length transactions between the two entities; and (e) the use of Korinthian DMCC to receive and hold funds that would otherwise be held directly by KMH.
58. Second, and in the alternative, amounts held by EGCB in the accounts of Korinthian DMCC may constitute debts owed by Korinthian DMCC to KMH — for example, where Korinthian DMCC holds funds on behalf of or for the account of KMH, or where it has received funds that are properly owing to KMH. Such amounts are attachable as third-party debts under Article 253 of the Civil Procedure Law, on the basis that they represent debts owed by Korinthian DMCC (the third party) to KMH (the debtor), which are in turn held by EGCB (the garnishee).
D. Urgency and Need for Ex Parte Relief
59. The Applicant respectfully requests that this Honourable Court grant the precautionary attachment on an ex parte basis, without prior notice to the Respondent (Korinthian DMCC) or the Bank (EGCB).
60. The basis for this request is as follows:
(a) Demonstrated pattern of asset dissipation: As set out in detail in Section V.B above, KMH and its affiliates (including Korinthian DMCC) have already engaged in a pattern of post-award asset dissipation, including the transfer of funds to entities controlled by Mr. Andrei Volkov and the attempted sale of vessels. If Korinthian DMCC were given prior notice of this application, there is every reason to believe that it would immediately take steps to transfer or dissipate the funds held in its EGCB accounts, thereby rendering the attachment futile.
(b) Liquidity of the assets in question: The assets subject to the proposed attachment are bank deposits and credit balances — liquid assets that can be transferred electronically within hours, or even minutes, to accounts in other jurisdictions. The ease with which these funds can be moved underscores the urgency of ex parte relief.
(c) Precedent of the English worldwide freezing order: The English Commercial Court granted the worldwide freezing order against KMH on an ex parte basis on 16 July 2024, recognizing that prior notice to KMH would have enabled it to dissipate its assets. The same considerations apply with equal force to the present application.
(d) Prompt post-execution notification: The Applicant undertakes to ensure that the Respondent is notified of the attachment order promptly following the execution of the order by EGCB. The Respondent will then have the opportunity to apply to the Court to vary or discharge the attachment, and the Applicant will be required to justify the maintenance of the attachment at any such hearing.
61. The Applicant submits that the balance of convenience overwhelmingly favours the grant of ex parte relief. If the attachment is granted and subsequently found to have been wrongly ordered, the Applicant has undertaken to compensate the Respondent for any loss or damage (see Section IX below). Conversely, if the attachment is not granted, or if prior notice is given, there is a real and substantial risk that the funds will be dissipated, causing irreparable prejudice to the Applicant for which damages would be an inadequate remedy.
VI. IDENTIFICATION OF ASSETS SUBJECT TO ATTACHMENT
62. The assets over which the Applicant seeks a precautionary attachment are as follows:
63. Bank Accounts: All accounts, deposits (whether demand, time, fixed, or otherwise), credit balances, and any other sums whatsoever held by or in the name of Korinthian DMCC at Emirates Gulf Commercial Bank PJSC, Dubai Branch, Gate Village 3, DIFC, Dubai, UAE, including but not limited to:
(a) current accounts and operating accounts;
(b) savings accounts and deposit accounts;
(c) fixed-term deposit accounts and certificates of deposit;
(d) call accounts, money market accounts, and any other interest-bearing accounts;
(e) letters of credit, bank guarantees, standby letters of credit, and any other instruments or facilities pursuant to which EGCB may owe or become liable to pay sums to Korinthian DMCC;
(f) amounts held in any currency, including but not limited to UAE Dirhams (AED), United States Dollars (USD), British Pounds Sterling (GBP), Euros (EUR), and any other currency; and
(g) any safe deposit boxes or custody accounts maintained by Korinthian DMCC at EGCB, to the extent that they contain assets falling within the scope of this attachment.
64. Receivables: All debts, receivables, and amounts owed by third parties to Korinthian DMCC that are held at, payable through, or otherwise passing through EGCB, including but not limited to:
(a) charter hire receivables;
(b) freight payments;
(c) demurrage claims and demurrage payments;
(d) proceeds of sale of vessels or other assets;
(e) insurance proceeds; and
(f) any other sums due or to become due to Korinthian DMCC from any source, to the extent held at or payable through EGCB.
65. Maximum Attachment Amount: The precautionary attachment is sought up to the maximum amount of £108,600,000 (one hundred and eight million, six hundred thousand British Pounds Sterling), or the equivalent in AED, USD, or other currency at the prevailing exchange rate on the date of execution of the attachment order, plus:
(a) accrued post-award interest at the rate of 5.25% per annum simple from 29 June 2024 to the date of execution of the attachment order; and
(b) enforcement costs incurred by the Applicant in connection with these proceedings.
VII. SUPPORTING DOCUMENTARY EVIDENCE
66. In support of this application, the Applicant annexes the following documentary exhibits:
Exhibit 1: Certified copy of LCIA Award No. 224718 dated 28 June 2024, together with a certified Arabic translation. The Award sets out the Tribunal's findings of fact and law, quantifies the damages awarded to TSL, allocates costs, and provides for post-award interest. The certified copy has been obtained from the LCIA and has been legalized through the UK Foreign, Commonwealth & Development Office (FCDO) and the UAE Embassy in London for use in the UAE courts.
Exhibit 2: Certified copies of the three time charter-party agreements between TSL and KMH, namely: (a) the charter-party dated 15 March 2019 for the M/V Aegean Fortuna; (b) the charter-party dated 22 January 2020 for the M/V Crimson Horizon; and (c) the charter-party dated 10 June 2021 for the M/V Volga Spirit. Each charter-party contains the arbitration clause providing for LCIA arbitration with London as the seat. Certified Arabic translations are included.
Exhibit 3: Certificate from the LCIA Registrar confirming that LCIA Award No. 224718 is final and binding. The certificate has been legalized through the UK FCDO and the UAE Embassy in London.
Exhibit 4: Demand letter from Calderwood & Harkness LLP to Harkness Whitford & Co. (KMH's English solicitors) dated 8 July 2024, demanding payment of the full amount of the Award, including costs and accrued interest. The letter constitutes formal notice that TSL would pursue enforcement in all available jurisdictions in the event of non-compliance.
Exhibit 5: Certified copies of (a) the Worldwide Freezing Order granted by Mr. Justice Ashworth in the Commercial Court, England & Wales (Claim No. CL-2024-000487) dated 16 July 2024, and (b) the Order continuing the Worldwide Freezing Order with modifications, made on the return date of 30 July 2024. Both orders are accompanied by certified Arabic translations and have been legalized through the UK FCDO and the UAE Embassy in London.
Exhibit 6: Extracts from asset tracing reports prepared by Hartwell Pemberton LLP (forensic accountants, 25 Old Broad Street, London EC2N 1HN) identifying Korinthian DMCC's accounts at EGCB, the balances held in those accounts (to the extent ascertainable), and the flow of funds through those accounts. The reports demonstrate the pattern of fund flows between KMH, Korinthian DMCC, and related entities, and identify the EGCB accounts as a significant repository of KMH-attributable funds within the UAE.
Exhibit 7: Corporate registry extracts for (a) Korinthian DMCC (obtained from the DMCC Authority, Dubai) and (b) Korinthian Maritime Holdings Ltd. (obtained from the Registrar of Companies, Department of the Registrar of Companies and intellectual Property, Nicosia, Cyprus, registration number HE 387421). These extracts demonstrate the corporate relationship between Korinthian DMCC and KMH, including common beneficial ownership and overlapping directorships.
Exhibit 8: Evidence of post-award asset dissipation by KMH and related entities, comprising: (a) further extracts from the asset tracing reports prepared by Hartwell Pemberton LLP; and (b) extracts from the disclosure materials provided by KMH pursuant to the English Worldwide Freezing Order. This evidence demonstrates the pattern of post-award fund transfers and attempted asset dispositions described in Section V.B of this application.
Exhibit 9: Certified copy of the Enforcement Application filed by TSL in the Dubai Court of First Instance (Case No. 1893/2024, filed 22 August 2024), seeking recognition and enforcement of LCIA Award No. 224718 under the New York Convention and applicable UAE law.
Exhibit 10: Power of Attorney executed by Mr. Nikolaos Papadimitriou, Chairman and CEO of Thalassa Shipping & Logistics SA, authorizing Al-Rashid Hatem & Associates to act on behalf of TSL in all proceedings before the UAE courts in connection with the enforcement of LCIA Award No. 224718, including the filing of this application for precautionary attachment. The Power of Attorney has been duly notarized, apostilled, and legalized for use in the UAE.
VIII. PARALLEL ENFORCEMENT PROCEEDINGS IN OTHER JURISDICTIONS
67. In the interests of full and frank disclosure and as a matter of good faith and comity, the Applicant informs this Honourable Court of the following parallel enforcement proceedings that have been commenced in other jurisdictions in respect of the same Award:
68. England and Wales:
(a) TSL filed an application to enforce the Award under Section 66 of the Arbitration Act 1996 in the Commercial Court of England and Wales on 15 July 2024 (Claim No. CL-2024-000487).
(b) Permission to enforce the Award as a judgment was granted by Mr. Justice Ashworth on 2 August 2024.
(c) A Worldwide Freezing Order was granted on an ex parte basis on 16 July 2024 and was continued with modifications at the return date hearing on 30 July 2024.
(d) Third-party debt order proceedings have been initiated against Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA, in respect of accounts held by KMH and its English subsidiaries at that bank.
69. Cyprus:
(a) TSL filed an application for recognition and enforcement of the Award in the Nicosia District Court on 9 August 2024 (Case No. 2247/2024).
(b) A freezing injunction was granted on 12 August 2024 over the shares of Oceangate Ventures Ltd. (a Cyprus-registered KMH subsidiary, HE 401293) and over KMH's bank accounts in Cyprus.
(c) TSL is represented in the Cypriot proceedings by Kyprianos Makrides & Partners, 15 Grivas Digenis Avenue, Nicosia 1066, Cyprus.
70. Singapore:
(a) TSL filed an application to enforce the Award under the International Arbitration Act (Cap. 143A) in the General Division of the High Court of Singapore on 14 August 2024 (Originating Summons No. 872/2024).
(b) The M/V Crimson Horizon (which KMH had attempted to sell through Korinthian Bulkers (Singapore) Pte. Ltd.) was arrested by order of the Singapore court on 20 August 2024.
(c) Garnishee proceedings have been initiated against Pinnacle Bank (Singapore) Ltd., 6 Battery Road, #20-01, Singapore 049909, in respect of accounts held by Korinthian Bulkers (Singapore) Pte. Ltd.
(d) TSL is represented in the Singapore proceedings by Straits Meridian LLP, 1 Raffles Place, #44-01, One Raffles Place Tower 2, Singapore 048616.
71. The Applicant undertakes to notify this Honourable Court promptly of any amounts recovered in the parallel proceedings in other jurisdictions. The Applicant further undertakes to ensure that no double recovery occurs. In the event that amounts are recovered elsewhere, the Applicant will apply to this Court to reduce the quantum of the precautionary attachment accordingly.
72. The Applicant respectfully submits that the existence of parallel enforcement proceedings does not militate against the grant of the precautionary attachment in this jurisdiction. To the contrary, the outstanding amount owed under the Award (£108,600,000, exclusive of accruing post-award interest) far exceeds the assets identified in any single jurisdiction. KMH's deliberate fragmentation of its assets across multiple jurisdictions necessitates a coordinated multi-jurisdictional enforcement strategy. The precautionary attachment in the UAE is an essential component of that strategy, as Korinthian DMCC's accounts at EGCB represent a significant concentration of KMH-attributable assets within this jurisdiction.
IX. UNDERTAKINGS BY THE APPLICANT
73. In support of this application, and as required by law and practice, the Applicant undertakes to this Honourable Court as follows:
(a) Diligent prosecution of enforcement proceedings: The Applicant undertakes to file and pursue the enforcement application in Case No. 1893/2024 diligently before this Court, and to take all steps necessary to bring the enforcement proceedings to a timely conclusion.
(b) Disclosure of recoveries: The Applicant undertakes to provide this Court with regular updates on the progress of enforcement proceedings in other jurisdictions and on any amounts recovered therein. In the event that recoveries are made in other jurisdictions, the Applicant will promptly apply to this Court to reduce the quantum of the precautionary attachment by the amount of such recoveries, so as to ensure that no double recovery occurs.
(c) Compensation for wrongful attachment: The Applicant undertakes to compensate the Respondent for any loss or damage caused by the precautionary attachment if this Court ultimately determines that the attachment was wrongly granted. This undertaking is given in recognition of the fact that a precautionary attachment, particularly one granted on an ex parte basis, has the potential to cause financial prejudice to the party whose assets are frozen, and the Applicant accepts responsibility for such prejudice in the event that the attachment is subsequently discharged.
(d) Prompt notification to the Respondent: The Applicant undertakes to notify the Respondent of the precautionary attachment order promptly following its execution by EGCB, and to serve a copy of the order and this application (together with all supporting exhibits) on the Respondent in accordance with the applicable rules of service.
(e) Compliance with Court conditions: The Applicant undertakes to comply with any conditions, requirements, or directions that may be imposed by this Court in connection with the grant of the precautionary attachment, including any requirement to provide security or a counter-guarantee.
X. PRAYER FOR RELIEF (FORMAL)
74. For the foregoing reasons, and on the basis of the evidence and legal authorities set out above, the Applicant respectfully prays that this Honourable Court:
(1) Issue an order of precautionary attachment (حجز تحفظي) over all accounts, deposits, credit balances, receivables, and sums held by or in the name of Korinthian DMCC at Emirates Gulf Commercial Bank PJSC (Dubai Branch, Gate Village 3, DIFC, Dubai, UAE), up to the amount of £108,600,000 (one hundred and eight million, six hundred thousand British Pounds Sterling), or the equivalent in AED, USD, or other currency at the prevailing exchange rate, plus post-award interest accruing at the rate of 5.25% per annum simple from 29 June 2024 until the date of full satisfaction, plus the costs of enforcement incurred by the Applicant;
(2) Direct Emirates Gulf Commercial Bank PJSC to freeze all such accounts, deposits, credit balances, receivables, and sums immediately upon service of the attachment order, and to refrain from releasing, transferring, paying out, or otherwise dealing with any such sums without further order of this Court;
(3) Grant the precautionary attachment without prior notice to the Respondent (Korinthian DMCC), given the demonstrated risk of asset dissipation set out herein, with the Respondent to be notified of the attachment order promptly following its execution; and
(4) Order the costs of this application to be borne by the Respondent, Korinthian DMCC.
75. The Applicant reserves the right to seek such further or additional relief as this Court may deem just and appropriate in the circumstances.
XI. SIGNATURE BLOCK AND VERIFICATION
76. This Application is respectfully submitted to the Dubai Court of First Instance on this 25th day of August 2024.
VERIFICATION
I, Tariq Al-Rashid, Managing Partner of Al-Rashid Hatem & Associates, do hereby verify that the contents of this Application are true and correct to the best of my knowledge and belief, based on the instructions received from the Applicant and the documentary evidence reviewed by me and my colleagues. I am duly authorized to file this Application on behalf of Thalassa Shipping & Logistics SA pursuant to the Power of Attorney annexed hereto as Exhibit 10.
AL-RASHID HATEM & ASSOCIATES Counsel for the Applicant, Thalassa Shipping & Logistics SA
By: ________
Name: Tariq Al-Rashid
Title: Managing Partner
Office 1802, Emirates Financial Towers (South Tower) DIFC, Dubai, UAE
Date: ________
By: ________
Name: Leila Hatem
Title: Partner, Dispute Resolution
Al-Rashid Hatem & Associates Office 1802, Emirates Financial Towers (South Tower) DIFC, Dubai, UAE
Date: ________
Authorization: This Application is filed pursuant to a Power of Attorney executed by Mr. Nikolaos Papadimitriou, Chairman and Chief Executive Officer of Thalassa Shipping & Logistics SA, dated 15 August 2024, duly notarized, apostilled, and legalized for use in the UAE. A copy of the Power of Attorney is annexed as Exhibit 10.
Prepared in coordination with: