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IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

Claim No. CL-2024-000487

BETWEEN:

THALASSA SHIPPING & LOGISTICS SA Claimant/Applicant

— and —

KORINTHIAN MARITIME HOLDINGS LTD. Defendant/Respondent

FIRST WITNESS STATEMENT OF HANNAH BRINKLEY

Filed in support of the Claimant/Applicant's Application for an Interim Third-Party Debt Order pursuant to CPR Part 72 against Meridian Trust Bank Ltd.

Date of Statement: 4 August 2024 Filed: 5 August 2024 Deponent: Hannah Brinkley Number of Statement: First Exhibits: HB-1 to HB-7

This witness statement has been prepared by Calderwood & Harkness LLP, solicitors for the Claimant/Applicant, Thalassa Shipping & Logistics SA. It is filed in support of the Claimant/Applicant's application, made without notice to the Defendant/Respondent, for an interim third-party debt order pursuant to CPR Part 72 against Meridian Trust Bank Ltd.

FIRST WITNESS STATEMENT OF HANNAH BRINKLEY

Section 1: Introduction and Qualifications

1. My full name is Hannah Brinkley. I am a Lead Associate in the Litigation (General) department of Calderwood & Harkness LLP, a law firm authorised and regulated by the Solicitors Regulation Authority, with offices at 45 Moorgate, London EC2R 6AR. I have been qualified as a solicitor of England and Wales since 2016 and have practised in the field of international commercial litigation and enforcement throughout my career.

2. I have day-to-day conduct of the enforcement proceedings brought by Thalassa Shipping & Logistics SA ("TSL" or the "Claimant") against Korinthian Maritime Holdings Ltd. ("KMH" or the "Defendant") in these proceedings. I work under the supervision of Samuel Eklund, the Responsible Partner with overall supervisory conduct of the matter, and Linda Osei, the Billing Partner. I am further assisted by Patrick Gallagher, a Working Associate, who has been instrumental in the preparation of the evidence and exhibits filed in support of this application.

3. I make this witness statement in support of TSL's application for an interim third-party debt order (an "Interim TPDO") pursuant to CPR Part 72 against Meridian Trust Bank Ltd. ("Meridian Trust" or the "Third Party"), which holds debts owed to KMH in the form of account balances standing to the credit of KMH's accounts at Meridian Trust's London branch.

4. The facts stated in this witness statement are within my own knowledge, save where I indicate otherwise. Where the matters stated are not within my own knowledge, they are derived from documents in the files of Calderwood & Harkness LLP, from information provided by TSL and its officers, from documents produced in the course of the LCIA arbitration proceedings described below, from information provided by Hartwell Pemberton LLP (the forensic accountants engaged on behalf of TSL), and from other sources which I identify in each instance. Where statements are made on the basis of information or belief, I have identified them as such and have stated the source and basis for that information or belief.

5. I confirm that I understand the duty of a witness to assist the court and that I have complied with that duty. I confirm that the contents of this witness statement are true to the best of my knowledge and belief.

6. There is now produced and shown to me an exhibit bundle marked "HB-1" through "HB-7" consisting of the documents to which I refer in this witness statement. Where I refer to page numbers in the exhibits, I refer to the internal pagination of the exhibit bundle prepared for the purposes of this application.

Section 2: The Parties

2.1 The Claimant — Thalassa Shipping & Logistics SA

7. Thalassa Shipping & Logistics SA ("TSL") is a société anonyme organised under the laws of the Hellenic Republic (Greece), with its registered office at 14 Akti Miaouli, Piraeus 185 35, Greece. TSL's Greek Tax Identification Number (AFM) is EL-801456729.

8. TSL is a strategic private shipping and logistics company, founded in 1987 by the Papadimitriou family. It has grown over the past three and a half decades into one of the most significant privately held shipping enterprises operating in the eastern Mediterranean and globally. TSL operates a fleet of 34 vessels, which comprises a diversified portfolio of bulk carriers, tankers, and container feeders engaged in international trade. For the financial year ended 31 December 2023, TSL reported annual revenues of approximately €620 million.

9. TSL's ownership structure is as follows: approximately 72% of its issued share capital is held by the Papadimitriou Family Trust, a discretionary trust established under Greek law, the beneficiaries of which are members of the Papadimitriou family. The remaining 28% is held by Aegean Capital Partners SA, a Greek-incorporated investment vehicle.

10. The principal officers of TSL relevant to these proceedings are:

(a) Mr. Nikolaos Papadimitriou, Chairman and Chief Executive Officer;

(b) Ms. Elena Stavridis, Chief Financial Officer;

(d) Ms. Ioanna Christodoulou, General Counsel.

11. TSL is the award creditor in respect of LCIA Award No. 224718 dated 28 June 2024, the enforcement of which is the subject of these proceedings.

2.2 The Defendant — Korinthian Maritime Holdings Ltd.

12. Korinthian Maritime Holdings Ltd. ("KMH") is a private limited company incorporated in Nicosia, Cyprus, under the Companies Law, Cap. 113 of the Laws of the Republic of Cyprus, with company registration number HE 387421. KMH's registered address is 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.

13. KMH is a vessel-owning and chartering company which, at the material times, controlled a fleet of approximately 18 dry-bulk carriers through a network of single-purpose vehicle ("SPV") subsidiaries registered in various jurisdictions, including the British Virgin Islands, Singapore, and Cyprus. KMH acted as the disponent owner of the vessels in question, entering into charter-party agreements with charterers such as TSL through its role as the central contracting entity within its corporate group.

14. KMH is beneficially owned by the Volkov family through a series of British Virgin Islands and Cypriot holding structures. The ultimate beneficial owner of KMH is Mr. Andrei Volkov, who, as I shall explain below, acts as a de facto director of KMH and exercises substantial operational control over the company and its subsidiaries, notwithstanding that he is not formally registered as a director in the Cypriot company registry. The principal officers and individuals relevant to these proceedings are:

(a) Mr. Andrei Volkov, ultimate beneficial owner and de facto director;

(b) Mr. Sergei Volkov, a registered director of KMH;

(d) Mr. Alexei Demidov, Director of Fleet Operations.

15. Prior to the dispute giving rise to the LCIA arbitration, KMH had an estimated net asset value of approximately USD $280 million. I make this observation on the basis of financial information disclosed by KMH during the LCIA arbitration proceedings and the preliminary analysis carried out by Hartwell Pemberton LLP.

16. KMH is the award debtor and, following the grant of permission to enforce the award as a judgment on 2 August 2024, it is the judgment debtor in these proceedings.

17. KMH's solicitors on record in these proceedings are Harkness Whitford & Co. (SRA No. 614823), of 12 Fetter Lane, London EC4A 1JP. The matter is handled at Harkness Whitford by Mr. Richard Harkness (Senior Partner), Ms. Catherine Whitford (Partner), and Mr. James Thornbury (Associate).

2.3 The Third Party — Meridian Trust Bank Ltd.

18. Meridian Trust Bank Ltd. ("Meridian Trust") is a bank incorporated in England and Wales as a private company limited by shares, with its principal office at 50 Lombard Street, London EC3V 9EA, United Kingdom. Meridian Trust is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

19. Meridian Trust serves as KMH's primary London correspondent bank. As I shall explain in greater detail below, KMH maintains at least one active sterling-denominated account and at least one active US dollar-denominated account at Meridian Trust's London branch. These accounts are used for the receipt of charter hire, freight revenues, and trade receivables arising from KMH's international shipping operations. Meridian Trust accordingly holds debts (in the form of account balances standing to KMH's credit) which are amenable to attachment by means of a third-party debt order under CPR Part 72.

Section 3: Background to the Dispute and the LCIA Award

3.1 The Charter-Party Agreements

20. The underlying dispute between TSL and KMH arises out of three time charter-party agreements (the "Charters") entered into between TSL (as charterer) and KMH (as disponent owner) between 2019 and 2021. The Charters relate to the following vessels:

(a) M/V *Aegean Fortuna — IMO Number 9784521; vessel type: Supramax Bulk Carrier; deadweight tonnage: 58,200 DWT; flag state: Republic of the marshall Islands; SPV owner: Dnepr Shipholding Inc. (a BVI-incorporated company and wholly-owned subsidiary of KMH). The time charter-party for the M/V Aegean Fortuna was executed on 15 March 2019 (the "Aegean Fortuna Charter*").

(b) M/V *Crimson Horizon — IMO Number 9801334; vessel type: Handymax Bulk Carrier; deadweight tonnage: 37,500 DWT; flag state: Republic of Liberia; SPV owner: Korinthian Bulkers (Singapore) Pte. Ltd. (a Singapore-incorporated company and wholly-owned subsidiary of KMH). The time charter-party for the M/V Crimson Horizon was executed on 22 January 2020 (the "Crimson Horizon Charter*").

(c) M/V *Volga Spirit — IMO Number 9756892; vessel type: Panamax Bulk Carrier; deadweight tonnage: 76,400 DWT; flag state: Republic of Cyprus; SPV owner: Dnepr Shipholding Inc. The time charter-party for the M/V Volga Spirit was executed on 10 June 2021 (the "Volga Spirit Charter*").

21. All three Charters were governed by English law. Each Charter 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 as the seat of arbitration. The inclusion of these arbitration clauses in each Charter was consistent with standard market practice in the international shipping industry and reflected the parties' agreement that any disputes arising out of or in connection with the Charters would be determined by LCIA arbitration in London.

22. Under each of the three Charters, KMH acted as disponent owner. The vessels were owned by KMH's SPV subsidiaries, Dnepr Shipholding Inc. and Korinthian Bulkers (Singapore) Pte. Ltd., but were let to TSL on time charter through KMH in its capacity as the contracting entity within the KMH group. The Charters were negotiated over a period of several years during which the commercial relationship between TSL and KMH was productive and profitable for both parties. The chartering arrangements provided TSL with access to dry-bulk tonnage required for its global shipping operations, while KMH received hire payments which constituted a significant revenue stream for its fleet.

3.2 KMH's Repudiatory Breaches

23. Beginning in mid-2022, KMH engaged in a pattern of repudiatory breach of the three Charters. The breaches in respect of each vessel were as follows:

(a) M/V *Aegean Fortuna* — Wrongful Early Redelivery. On 18 June 2022, KMH wrongfully redelivered the M/V Aegean Fortuna to TSL approximately 14 months prior to the contractual redelivery date. This early redelivery was effected without contractual justification and in breach of KMH's obligation to maintain the vessel on hire for the full charter period. TSL was thereby deprived of the hire income and the commercial benefit of the vessel for the unexpired period of the Aegean Fortuna Charter. TSL treated this as a repudiatory breach and accepted the repudiation.

(b) M/V *Crimson Horizon* — Failure to Pay Hire. From 1 July 2022 onwards, KMH ceased making the contractually required hire payments in respect of the M/V Crimson Horizon. Hire arrears totalling £4,280,000 accrued over the period from 1 July 2022 to 15 September 2022. Despite repeated demands for payment, KMH failed to remit any portion of the outstanding hire. On 15 September 2022, TSL exercised its contractual right to withdraw the vessel from KMH's service, having given proper notice in accordance with the anti-technicality clause in the Crimson Horizon Charter. TSL treated the non-payment as a repudiatory breach and accepted the repudiation.

(c) M/V *Volga Spirit* — Fabricated Off-Hire Deductions. In respect of the M/V Volga Spirit, KMH applied a series of off-hire deductions to its hire payments, totalling approximately £2,740,000. These deductions were found by the Tribunal to be fabricated, lacking any legitimate basis under the off-hire clause of the Volga Spirit Charter. The Tribunal concluded that the purported off-hire events either did not occur at all or were attributable to KMH's own actions or omissions rather than to any deficiency in the vessel or TSL's performance.

24. The combined effect of these breaches was to deprive TSL of a very substantial proportion of the commercial benefit it was entitled to derive from the three Charters. The circumstances strongly suggested a coordinated and deliberate course of conduct by KMH designed to extract itself from its charter obligations at a time when prevailing market rates for dry-bulk tonnage had declined, making the Charters commercially unfavourable from KMH's perspective.

3.3 The LCIA Arbitration

25. In light of KMH's repudiatory breaches, TSL commenced arbitration proceedings under the LCIA Rules. A Request for Arbitration was filed with the LCIA on 14 November 2022, bearing LCIA Case Reference No. 224718.

26. The arbitral tribunal (the "Tribunal") was constituted on 8 February 2023. The members of the Tribunal were as follows:

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

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

27. Ms. Fiona Beckett was appointed as Tribunal Secretary. The Tribunal's appointment was confirmed by the LCIA Court without challenge from either party, and both parties confirmed the Tribunal's jurisdiction.

28. The proceedings advanced through written submissions, documentary disclosure, and witness evidence over the course of several months. An evidentiary hearing took place from 11 September 2023 through 22 September 2023, a period of ten hearing days, at the International Dispute Resolution Centre ("IDRC") in London. During the hearing, the Tribunal heard from factual witnesses called by both parties, including witnesses of fact from TSL's chartering and operations departments and from KMH's management. Expert evidence on quantum, including market rate analysis, was also presented by both sides. The hearing was hard-fought, with KMH vigorously contesting both liability and quantum across all three Charters.

29. Following post-hearing submissions and a period of deliberation, the Tribunal issued its Final Award on 28 June 2024 (the "Award"). A copy of the Award is exhibited at Exhibit HB-3.

3.4 The Award

30. The Tribunal found in favour of TSL on all heads of claim and rendered the Award in TSL's favour, as follows:

(a) Damages for wrongful early redelivery of M/V *Aegean Fortuna*: £42,300,000. This sum represented the net present value of the hire and other contractual payments that TSL would have received over the unexpired period of the Aegean Fortuna Charter, less the costs saved by TSL and any mitigation achieved through employment of the vessel on alternative fixtures.

(b) Outstanding hire and damages for M/V *Crimson Horizon*: £28,150,000, comprising £4,280,000 in outstanding hire arrears and £23,870,000 in loss of bargain damages. The loss of bargain damages reflected the difference between the contractual hire rate and the market rate for equivalent tonnage over the unexpired charter period, capitalised to a present value as of the date of breach.

(c) Restitution of fabricated off-hire deductions for M/V *Volga Spirit*: £2,740,000, being the aggregate amount of the off-hire deductions which the Tribunal found to have been improperly and dishonestly applied.

(d) Loss of profit / market differential damages: £16,480,000. This head of damage reflected TSL's loss of market opportunity and the additional costs incurred in re-chartering replacement tonnage at a time when market conditions had shifted.

(e) Pre-award interest: £6,780,000, calculated at the rate of 5.25% per annum simple from the respective dates of breach through to the date of the Award (28 June 2024).

31. The total sum awarded to TSL in damages and pre-award interest was accordingly £96,450,000. At the prevailing exchange rate as of 28 June 2024 (approximately £1 = USD $1.2441), this equated to approximately USD $120,000,000.

32. The Tribunal further ordered that the costs of the arbitration be allocated as to 85% to KMH and as to 15% to TSL, reflecting TSL's near-complete success on all issues. The costs were assessed as follows:

(a) LCIA administrative charges and tribunal fees and expenses: £3,240,000 (85% = £2,754,000 payable by KMH); and

(b) TSL's legal costs (including solicitors' and counsel's fees, expert fees, and disbursements): £8,910,000 (85% = £7,573,500 payable by KMH).

33. The total costs allocation against KMH was accordingly £12,150,000 (being 85% of the combined costs of £12,150,000), with the result that the grand total of the Award (including costs) was £108,600,000.

34. The Tribunal further ordered that post-award interest should run at the rate of 5.25% per annum simple on unpaid sums from 29 June 2024 (the day following the date of the Award) until the date of payment or further order.

Section 4: The Enforcement Proceedings in England and Wales

4.1 Application Under Section 66 of the Arbitration Act 1996

35. On 15 July 2024, TSL filed an application in the Commercial Court of the Business and Property Courts of England and Wales to enforce the Award as a judgment of the court, pursuant to section 66 of the Arbitration Act 1996. The application was issued under Claim No. CL-2024-000487.

36. The application was supported by my second witness statement (filed in those proceedings) and by the exhibits thereto, which included the Award itself and evidence establishing that the requirements for enforcement under section 66 were satisfied. In particular, the evidence demonstrated that the Award was a valid and binding LCIA award, that it was made at a London seat, that it was a final award disposing of all claims and counterclaims, and that there was no pending application to challenge or set aside the Award at the time the application was filed.

37. On 2 August 2024, Mr. Justice Ashworth granted permission to enforce the Award as a judgment of the Commercial Court. A sealed copy of the order of Mr. Justice Ashworth dated 2 August 2024 is exhibited at Exhibit HB-1. The effect of that order is that the Award is now enforceable as a judgment of the Commercial Court for the sum of £108,600,000, together with post-award interest at the rate of 5.25% per annum simple on £96,450,000 from 29 June 2024 until the date of payment or further order.

4.2 Worldwide Freezing Order

38. In parallel with the section 66 application, TSL applied to the Commercial Court for a worldwide freezing order (a "WFO") against KMH. The application was made without notice to KMH, supported by evidence establishing a good arguable case on the merits (namely, the Award itself), a real risk of dissipation of assets, and the existence of assets against which the order could bite.

39. On 16 July 2024, Mr. Justice Ashworth granted a worldwide freezing order 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 whether located within or outside the jurisdiction of this Court, up to the value of £108,600,000. A sealed copy of the WFO dated 16 July 2024 is exhibited at Exhibit HB-2.

40. The WFO was served on KMH through its solicitors, Harkness Whitford & Co., on 17 July 2024. KMH filed evidence in response and the WFO came back before the court on the return date of 30 July 2024. On that occasion, Mr. Justice Ashworth continued the WFO with certain modifications which are not material to this application. The order made on the return date, dated 30 July 2024, is also exhibited at Exhibit HB-2.

41. The WFO includes ancillary asset disclosure provisions, pursuant to which KMH was required to disclose, by way of affidavit sworn by a responsible officer, all of its assets worldwide exceeding £25,000 in value, whether in its own name or not, and whether solely or jointly owned. The disclosure was required to include, inter alia, the nature, value, and location of each asset, the identity of any bank or financial institution at which KMH holds accounts, and the balance or approximate balance standing to the credit of each such account.

42. As I describe in greater detail below at Section 6 of this statement, KMH's compliance with the asset disclosure order has been incomplete and delayed.

4.3 KMH's Non-Compliance and Failure to Pay

43. Despite the grant of permission to enforce the Award as a judgment and the existence of the WFO, KMH has not made any voluntary payment whatsoever toward satisfaction of the Award or the enforcement judgment.

44. A pre-enforcement demand letter was sent by Calderwood & Harkness LLP to KMH's solicitors, Harkness Whitford & Co., on 8 July 2024. The letter demanded payment of the full amount of the Award within 14 days. A copy of that letter is exhibited at Exhibit HB-4. The 14-day deadline expired on 22 July 2024 without any payment being made and without any substantive response from Harkness Whitford indicating an intention to pay. No payment has been received from KMH at any time since.

45. KMH has indicated, through correspondence from Harkness Whitford & Co., that it intends to challenge the Award pursuant to sections 68 and/or 69 of the Arbitration Act 1996. Section 68 provides for challenge on the ground of serious irregularity, and section 69 provides for appeal on a point of law. As at the date of this witness statement, 4 August 2024, no such application has been filed by KMH. I note for the Court's information that KMH subsequently filed a combined application under sections 68 and 69 on 19 August 2024, but that application post-dates this witness statement and, importantly, no application for a stay of enforcement has been made or granted. The enforcement judgment therefore remains fully effective and enforceable.

46. In these circumstances, TSL is entitled to take all available steps to execute against KMH's assets in satisfaction of the enforcement judgment.

Section 5: Information Regarding KMH's Accounts at Meridian Trust Bank Ltd.

5.1 Identification of Accounts

47. Through investigations conducted on behalf of TSL, it has been ascertained that KMH maintains at least one active sterling-denominated account and at least one active US dollar-denominated account at Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA. As stated above, Meridian Trust serves as KMH's primary London correspondent bank for the receipt of charter hire, freight revenues, and trade receivables arising from KMH's international shipping operations.

48. The investigations to which I refer have been carried out by Hartwell Pemberton LLP ("Hartwell Pemberton" or "HP"), a firm of forensic accountants with offices at 25 Old Broad Street, London EC2N 1HN. Hartwell Pemberton was engaged by Calderwood & Harkness LLP on behalf of TSL for the specific purposes of tracing KMH's global assets, mapping KMH's corporate structure, and identifying assets against which the enforcement judgment might be executed. The lead individuals at Hartwell Pemberton on this engagement are Ms. Rebecca Saunders (Partner, Forensic and Investigative Services) and Mr. Mark Huxley (Director).

49. The information regarding KMH's accounts at Meridian Trust was obtained through the following sources:

(a) Documents produced in the LCIA arbitration. During the course of the LCIA arbitration, KMH produced a substantial body of documentation pursuant to the Tribunal's disclosure orders. Among the documents produced were charter-party hire payment instructions and bank statements which identified Meridian Trust Bank Ltd. as the receiving bank for hire payments under the three Charters. Relevant extracts from these documents are exhibited at Exhibit HB-6. These documents confirmed that KMH designated its accounts at Meridian Trust as the primary accounts for the receipt of hire payments from TSL and other charterers.

(b) Asset disclosure pursuant to the WFO. As noted above, the WFO granted on 16 July 2024 (and continued on 30 July 2024) included ancillary asset disclosure provisions requiring KMH to disclose all assets exceeding £25,000 in value. To the limited extent that KMH has complied with this order — and as I note in Section 6 below, compliance has been incomplete — the disclosure confirms the existence of accounts at Meridian Trust Bank Ltd. in KMH's name.

(c) Hartwell Pemberton's Preliminary Asset Tracing Report. Hartwell Pemberton prepared a Preliminary Asset Tracing Report dated 15 August 2024 (the "HP Preliminary Report"), relevant extracts from which are exhibited at Exhibit HB-5. The HP Preliminary Report identified and corroborated the existence of KMH's accounts at Meridian Trust through independent analysis of publicly available corporate filings, financial information obtained from shipping databases, and analysis of the documentary evidence produced in the arbitration. The HP Preliminary Report further analysed the historical pattern of transactions flowing through the London correspondent accounts and confirmed that the accounts remain active.

50. Based on the foregoing sources, taken together, I believe that substantial sums are standing to the credit of KMH's accounts at Meridian Trust Bank Ltd. at the date of this statement.

5.2 Estimated Balances

51. Based on the information available to Calderwood & Harkness and Hartwell Pemberton, the combined balances across KMH's accounts at Meridian Trust Bank Ltd. are believed to be in excess of £18,000,000 at the date of this statement. While this sum represents only a fraction of the total enforcement judgment (£108,600,000 plus post-award interest), it constitutes a very significant sum which would represent a material contribution to the satisfaction of that judgment.

52. The basis for this estimate is as follows:

(a) Pattern of charter hire receipts. Hartwell Pemberton's analysis of the historical transaction flow through KMH's accounts at Meridian Trust, derived from the arbitration disclosure materials, demonstrates that the accounts have consistently received substantial inflows of charter hire and freight revenues. The analysis of transaction patterns over the period 2019–2023 indicates average monthly inflows in the order of £2–4 million, with significant seasonal and market-related fluctuations. The accounts have historically maintained material credit balances.

(b) WFO asset disclosure. To the limited extent that KMH has provided asset disclosure in compliance with the WFO, the information disclosed is consistent with the accounts holding significant balances. I note, however, that KMH's disclosure has been incomplete and I place limited reliance on its content for this purpose.

(c) Hartwell Pemberton's analysis. The HP Preliminary Report, taking into account the above sources and applying analytical techniques to project likely current balances, concludes that the combined balances across KMH's accounts at Meridian Trust are likely to be in excess of £18,000,000. Ms. Saunders and Mr. Huxley have expressed the view that this estimate is conservative and that the actual balances may be materially higher.

53. The precise balance standing to the credit of KMH's accounts at Meridian Trust will be ascertained and confirmed upon service of the interim third-party debt order on Meridian Trust Bank Ltd. Meridian Trust will at that point be required to confirm the balance and to freeze the relevant sums.

Section 6: Evidence of Risk of Dissipation and Urgency

6.1 KMH's Pattern of Asset Dissipation

54. Since the issuance of the Final Award on 28 June 2024, KMH has engaged in what I can only describe as a concerted and systematic pattern of asset-shifting, evidently designed to frustrate TSL's enforcement of the Award. I set out the relevant evidence below.

55. First, by way of background, KMH controls a complex network of subsidiaries and single-purpose vehicles spanning multiple jurisdictions. The key entities within this network, as identified by Hartwell Pemberton, include:

(a) Korinthian Bulkers (Singapore) Pte. Ltd., a company incorporated in Singapore, which serves as the registered owner of certain vessels in the KMH fleet, including the M/V Crimson Horizon;

(b) Dnepr Shipholding Inc., a company incorporated in the British Virgin Islands with company number 2014876, which serves as the registered owner of other vessels in the KMH fleet, including the M/V Aegean Fortuna and the M/V Volga Spirit;

(c) Korinthian DMCC, a company incorporated in the Dubai Multi Commodities Centre, United Arab Emirates, which, based on the HP Preliminary Report, appears to serve as a trading and revenue collection vehicle for KMH's Middle East operations; and

(d) Oceangate Ventures Ltd., a company incorporated in Cyprus with registration number HE 401293, which serves as an intermediate holding company for a number of the fleet SPVs within the KMH corporate group.

56. This multi-jurisdictional corporate structure is not, in itself, unusual in the international shipping industry. However, Hartwell Pemberton's investigation has uncovered evidence which strongly suggests that KMH has actively exploited this structure to frustrate enforcement of the Award.

57. In particular, the HP Preliminary Report identifies the following matters of concern:

(a) Post-Award Transfers. Hartwell Pemberton's investigation has identified transfers from KMH accounts to entities associated with Mr. Andrei Volkov, the ultimate beneficial owner and de facto director of KMH, in the period between the date of the Award (28 June 2024) and the date on which the WFO was obtained (16 July 2024) — a window of approximately 18 days. The amounts and destinations of these transfers are detailed in the relevant extracts of the HP Preliminary Report exhibited at Exhibit HB-5 and in the evidence of post-award transfers exhibited at Exhibit HB-7. The timing of these transfers, immediately following the adverse award, is highly suggestive of a deliberate strategy to move assets beyond the reach of TSL's enforcement efforts.

(b) Attempted Sale of M/V *Crimson Horizon*. Hartwell Pemberton's investigation has revealed evidence that KMH, through its subsidiary Korinthian Bulkers (Singapore) Pte. Ltd., attempted to sell the M/V Crimson Horizon (IMO 9801334) following the issuance of the Award. Given that the M/V Crimson Horizon is one of the vessels at the centre of the dispute and that any sale proceeds would be a natural target for enforcement, the timing and circumstances of the attempted sale are deeply concerning. If the sale had been completed, the proceeds would likely have been routed to accounts outside England and Wales and potentially beyond the effective reach of this Court.

(c) Restructuring of Cypriot Holding Entities. Hartwell Pemberton has identified evidence that KMH has undertaken or initiated corporate restructuring steps in relation to its Cypriot holding entities, and in particular Oceangate Ventures Ltd. (HE 401293), which serves as the intermediate holding company for certain fleet SPVs. The nature and timing of these restructuring steps are consistent with an attempt to insulate fleet assets from TSL's enforcement efforts by interposing additional layers of corporate separation or by transferring beneficial ownership interests.

(d) Dispersal of Fleet Assets. More broadly, KMH has dispersed its fleet of approximately 18 dry-bulk carriers across multiple flag states and SPV structures in a manner which, in the view of Calderwood & Harkness and Hartwell Pemberton, is specifically designed to complicate enforcement. Vessels are registered under the flags of multiple different states, owned through SPVs in different jurisdictions, and managed through separate management companies. While this structure predates the dispute to some extent, the evidence suggests that it has been reinforced and made more complex in the post-award period.

58. Taken together, these matters demonstrate a clear and ongoing pattern of conduct by KMH which is directed at putting its assets beyond the reach of TSL.

6.2 Specific Risk to London Accounts

59. Against this background, there is in my view a real and immediate risk that KMH will seek to transfer or deplete the funds held at Meridian Trust Bank Ltd. before TSL can execute against them by means of a third-party debt order.

60. I make this assessment on the basis of the following matters:

(a) As described above, KMH has already engaged in a pattern of post-award asset-shifting, transferring funds to associated entities and individuals in the period between the Award and the WFO. There is every reason to believe that, absent a freezing order specifically targeting the Meridian Trust accounts, KMH would continue this pattern.

(b) KMH's compliance with the asset disclosure provisions of the WFO has been incomplete and delayed. KMH was required to provide a sworn affidavit disclosing all assets exceeding £25,000 within a specified timeframe. The disclosure ultimately provided, through Harkness Whitford & Co., was materially incomplete. Significant categories of assets were omitted or described in vague and unverifiable terms. This pattern of incomplete disclosure suggests a lack of good faith on KMH's part and a continuing intention to conceal assets from TSL.

(c) KMH has access to sophisticated international banking infrastructure. Through its network of subsidiaries and SPVs, KMH maintains banking relationships in multiple jurisdictions. Funds standing to the credit of accounts at Meridian Trust could readily be transferred to accounts at other banks, including — by way of example — accounts at Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in the name of Korinthian Bulkers (Singapore) Pte. Ltd., or to accounts at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai) in the name of Korinthian DMCC. Such transfers could be effected rapidly and, once completed, the funds would be outside the immediate reach of this Court.

(d) KMH has demonstrated through its conduct a willingness to move assets rapidly across jurisdictions in order to frustrate enforcement. The post-award transfers identified by Hartwell Pemberton were executed within days of the Award and before any freezing order could be obtained.

61. I am aware that the WFO is in place and prohibits KMH from dealing with its assets. However, the WFO operates in personam against KMH and does not, in itself, bind Meridian Trust as a third party to the proceedings. Although Meridian Trust was served with notice of the WFO and is thereby subject to the Penal Notice attaching to the order, the protection afforded by the WFO is, in my respectful submission, insufficient to eliminate the risk of dissipation in respect of the Meridian Trust accounts. A third-party debt order operates in rem, directly attaching the debt owed by Meridian Trust to KMH, and provides a significantly more secure mechanism for protecting and ultimately executing against these funds.

6.3 Urgency.

62. For the reasons set out above, an interim third-party debt order is necessary as a matter of urgency to prevent the dissipation of the funds at Meridian Trust before a final hearing can be convened and a final third-party debt order can be made.

63. TSL is not limiting its enforcement efforts to the English jurisdiction. TSL is simultaneously pursuing enforcement of the Award in multiple jurisdictions through local counsel, as follows:

(a) Cyprus: Enforcement proceedings have been commenced in the Nicosia District Court under Case No. 2247/2024, filed on 9 August 2024. A freezing injunction was granted by the Nicosia District Court on 12 August 2024. TSL is represented in Cyprus by Kyprianos Makrides & Partners.

(b) Singapore: Enforcement proceedings have been commenced by way of Originating Summons No. OS 872/2024, filed in the High Court of Singapore on 14 August 2024. TSL is represented in Singapore by Straits Meridian LLP.

(c) United Arab Emirates: Enforcement proceedings have been commenced under Case No. 1893/2024, filed on 22 August 2024 in the appropriate court in the UAE. TSL is represented in the UAE by Al-Rashid Hatem & Associates.

64. However, the English enforcement constitutes a critical first recovery step and the most immediate prospect for the realisation of funds in satisfaction of the judgment. The existence of enforcement proceedings in other jurisdictions does not diminish the urgency of securing the funds at Meridian Trust. On the contrary, the multi-jurisdictional nature of KMH's asset-shifting activities underscores the need to act quickly in each jurisdiction where assets have been identified.

65. I would further observe that the amounts believed to be held at Meridian Trust (in excess of £18,000,000) represent only a small fraction of the total enforcement judgment (£108,600,000 plus post-award interest). If these funds are dissipated before they can be secured, TSL's ability to achieve even a partial recovery in England will be materially prejudiced, and the enforcement proceedings as a whole will be significantly set back.

Section 7: The Application for an Interim Third-Party Debt Order

7.1 Legal Basis

66. CPR Part 72 governs the procedure for third-party debt orders. Under CPR r. 72.2(1), a judgment creditor may apply for a third-party debt order where a third party owes a debt to the judgment debtor and the judgment creditor wishes to have that debt paid to the judgment creditor in or towards satisfaction of the judgment debt.

67. TSL is a judgment creditor by virtue of the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment of the Commercial Court. KMH is the judgment debtor. Meridian Trust is a third party which owes debts to KMH in the form of account balances standing to the credit of KMH's accounts at its London branch.

68. The application is made in the first instance for an interim order under CPR r. 72.4. The effect of such an interim order is to require Meridian Trust Bank Ltd. to freeze the funds standing to KMH's credit at Meridian Trust and to restrain KMH from making any withdrawals from or other disposals of those funds pending the final hearing. At the final hearing (the "show cause" hearing), the Court will consider whether a final third-party debt order should be made, directing payment by Meridian Trust to TSL.

69. The application is made without notice to KMH and to Meridian Trust, as is the standard and prescribed procedure for interim third-party debt orders under CPR r. 72.3, which provides that the application should be made without notice.

7.2 Sums Sought

70. The interim third-party debt order is sought in respect of all sums standing to the credit of any accounts held by KMH at Meridian Trust Bank Ltd. The order is sought up to the total amount of the enforcement judgment, being:

(a) The principal sum awarded: £96,450,000;

(b) Costs of the arbitration allocated to KMH: £12,150,000;

(c) Post-award interest at 5.25% per annum simple on £96,450,000, running from 29 June 2024 and continuing to accrue until the date of payment or further order; and

(d) The costs of the enforcement proceedings (to be assessed).

71. A sealed copy of the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce the Award is exhibited at Exhibit HB-1.

7.3 Information Required Under CPR r. 72.3

72. CPR r. 72.3 requires the following information to be provided in the application for a third-party debt order. I set out that information below:

(a) Name and address of the judgment debtor: Korinthian Maritime Holdings Ltd., 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.

(b) Name and address of the third party: Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA, United Kingdom.

(c) Amount of the judgment debt remaining unpaid: £108,600,000, together with post-award interest at 5.25% per annum simple on £96,450,000 from 29 June 2024. No sums have been recovered by TSL against KMH at the date of this application. The entire judgment debt remains outstanding.

(d) Sources of information and documents confirming the third party's indebtedness: As set out in Section 5 of this statement, the existence of KMH's accounts at Meridian Trust has been confirmed through (i) documents produced in the LCIA arbitration, (ii) asset disclosure made pursuant to the WFO, and (iii) the HP Preliminary Report. Relevant evidence is exhibited at Exhibits HB-5, HB-6, and HB-7.

73. I further confirm, to the best of my knowledge and belief, that KMH has not applied for a stay of enforcement of the judgment, and no stay of enforcement is currently in force. As noted above, KMH has indicated an intention to challenge the Award under sections 68 and/or 69 of the Arbitration Act 1996, but no such application had been filed at the date of this statement. I note for the Court's information that a combined set-aside application under sections 68 and 69 was subsequently filed by KMH on 19 August 2024. However, no application for a stay of enforcement has been made in connection with that set-aside application, and no stay has been granted.

Section 8: Supporting Evidence — Hartwell Pemberton's Asset Tracing Findings

74. As I have referred to throughout this statement, Calderwood & Harkness engaged Hartwell Pemberton LLP to carry out forensic investigative and asset tracing work on behalf of TSL. Hartwell Pemberton is a leading firm of forensic accountants specialising in asset tracing, fraud investigation, and financial intelligence, with offices at 25 Old Broad Street, London EC2N 1HN. The engagement has been led by Ms. Rebecca Saunders (Partner, Forensic and Investigative Services) and Mr. Mark Huxley (Director), both of whom have extensive experience in international asset tracing and recovery in the maritime sector and beyond.

75. Hartwell Pemberton was initially engaged on 3 July 2024, shortly after the issuance of the Award, with a mandate to identify and trace KMH's global assets, to map the KMH corporate structure and the web of subsidiaries and SPVs through which KMH's assets (including its fleet) are held, and to provide intelligence in support of TSL's enforcement strategy.

76. Hartwell Pemberton produced the HP Preliminary Report on 15 August 2024. Relevant extracts of the HP Preliminary Report are exhibited at Exhibit HB-5. I summarise the key findings of the HP Preliminary Report below, insofar as they are relevant to this application:

(a) KMH's Accounts at Meridian Trust Bank Ltd. The HP Preliminary Report confirms the existence of KMH's accounts at Meridian Trust, based on independent analysis of documentary evidence produced in the LCIA arbitration, publicly available information from shipping databases and corporate registries, and financial intelligence. The HP Preliminary Report provides analysis of historical transaction flows through the Meridian Trust accounts, demonstrating that these accounts have been and continue to be actively used for the receipt and disbursement of charter hire, freight revenues, and other shipping-related receivables.

(b) KMH's Corporate Structure. The HP Preliminary Report maps the KMH corporate structure in detail, tracing the holding chain from KMH at the apex through Oceangate Ventures Ltd. (Cyprus, HE 401293) as the intermediate holding company, down to the fleet SPVs including Dnepr Shipholding Inc. (BVI, Company No. 2014876) and Korinthian Bulkers (Singapore) Pte. Ltd. The report also identifies Korinthian DMCC (Dubai, UAE) as a significant operational entity within the group. The corporate structure is characterised by multiple layers of holding companies, cross-border ownership chains, and the use of nominee arrangements, all of which serve to complicate the identification and enforcement against assets within the group.

(c) Post-Award Asset Transfers. The HP Preliminary Report identifies evidence of post-award asset transfers between KMH entities. In particular, the report documents transfers from KMH's accounts (including, it is believed, accounts at Meridian Trust) to accounts held in the names of affiliated entities and, in some cases, individuals associated with Mr. Andrei Volkov, in the period between 28 June 2024 and 16 July 2024. The report concludes that the timing and nature of these transfers are consistent with a deliberate strategy of dissipation.

(d) Assets in Other Jurisdictions. The HP Preliminary Report identifies assets held by KMH and its associated entities in jurisdictions outside England and Wales, including but not limited to:

(i) Accounts at Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in the name of Korinthian Bulkers (Singapore) Pte. Ltd.;

(ii) Accounts at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai) in the name of Korinthian DMCC; and

(iii) Vessel assets, being the fleet of approximately 18 dry-bulk carriers registered under various flags and owned through the SPV subsidiaries.

77. The HP Preliminary Report is a substantial and detailed document. I have exhibited only those extracts which are directly relevant to this application. The full report is available to the Court if required. Hartwell Pemberton's investigation is continuing, and further reports will be produced as the investigation progresses and additional information becomes available.

78. I believe that the findings of the HP Preliminary Report, taken together with the other evidence referred to in this statement, provide a clear and compelling evidential basis for the grant of an interim third-party debt order against Meridian Trust Bank Ltd.

Section 9: Exhibits

79. I refer in this witness statement to the following exhibits, which are contained in the accompanying exhibit bundle:

80. Each exhibit bears the identifying mark shown above and has been paginated for the convenience of the Court.

Section 10: Conclusion and Relief Sought

81. In light of the matters set out in this witness statement, I respectfully summarise the basis upon which TSL seeks an interim third-party debt order as follows:

(a) TSL holds an enforceable judgment of the Commercial Court in the sum of £108,600,000, together with post-award interest at 5.25% per annum simple on £96,450,000 from 29 June 2024, pursuant to the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 under section 66 of the Arbitration Act 1996.

(b) KMH, as judgment debtor, has failed to make any voluntary payment toward satisfaction of the Award or the enforcement judgment, despite a formal pre-enforcement demand and the passage of a reasonable period for payment.

(c) KMH maintains accounts at Meridian Trust Bank Ltd., its primary London correspondent bank, which hold substantial sums believed to be in excess of £18,000,000.

(d) There is a real and immediate risk that KMH will seek to transfer or deplete the funds at Meridian Trust before TSL can execute against them. This risk is demonstrated by KMH's post-award pattern of asset-shifting, its incomplete compliance with the WFO asset disclosure order, its access to sophisticated international banking infrastructure, and its demonstrated willingness to move assets rapidly across jurisdictions.

(e) An interim third-party debt order is necessary and appropriate to protect the funds at Meridian Trust pending the determination of TSL's application for a final third-party debt order at a show-cause hearing.

82. I respectfully request that the Court grant an interim third-party debt order under CPR Part 72 requiring Meridian Trust Bank Ltd. to freeze all sums standing to the credit of any accounts held in the name of Korinthian Maritime Holdings Ltd. at Meridian Trust's branch at 50 Lombard Street, London EC3V 9EA, up to the amount of the enforcement judgment (£108,600,000 plus post-award interest accruing thereon).

83. I further respectfully request that a hearing to show cause (final order hearing) be listed as soon as practicable following service of the interim order on Meridian Trust and KMH, in order that the Court may consider whether a final third-party debt order should be made.

84. TSL reserves the right to apply at the show-cause hearing for a final third-party debt order directing Meridian Trust to pay to TSL the sums standing to the credit of KMH's accounts in or towards satisfaction of the enforcement judgment.

Statement of Truth

I believe that the facts stated in this witness statement are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.

Signed: ________

HANNAH BRINKLEY

Date: ________

Position: Lead Associate, Calderwood & Harkness LLP 45 Moorgate, London EC2R 6AR

Stated on behalf of the Claimant/Applicant, Thalassa Shipping & Logistics SA

This witness statement is filed on behalf of the Claimant/Applicant, Thalassa Shipping & Logistics SA, by its solicitors, Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR (Ref: SE/LO/HB/PG/TSL-001). Telephone: +44 (0)20 7628 0000. Email: h.brinkley@calderwoodharkness.com.

Exhibit	Description
HB-1	Sealed order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment of the Commercial Court under section 66 of the Arbitration Act 1996
HB-2	Sealed Worldwide Freezing Order dated 16 July 2024, together with the sealed order made on the return date on 30 July 2024, continuing the WFO with modifications
HB-3	LCIA Final Award No. 224718 dated 28 June 2024
HB-4	Pre-enforcement demand letter from Calderwood & Harkness LLP to Harkness Whitford & Co. dated 8 July 2024
HB-5	Relevant extracts from the Hartwell Pemberton LLP Preliminary Asset Tracing Report dated 15 August 2024, identifying KMH's accounts at Meridian Trust Bank Ltd. and evidence of asset dissipation
HB-6	Extracts from documents produced in the LCIA arbitration showing charter hire payment instructions to Meridian Trust Bank Ltd. and related banking documentation
HB-7	Evidence of post-award transfers and asset-shifting by KMH, sourced from Hartwell Pemberton's investigation and KMH's WFO asset disclosure

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)
Claim No. CL-2024-000487
BETWEEN:
THALASSA SHIPPING & LOGISTICS SA Claimant/Applicant
— and —
KORINTHIAN MARITIME HOLDINGS LTD. Defendant/Respondent
FIRST WITNESS STATEMENT OF HANNAH BRINKLEY
Filed in support of the Claimant/Applicant's Application for an Interim Third-Party Debt Order pursuant to CPR Part 72 against Meridian Trust Bank Ltd.
Date of Statement: 4 August 2024 Filed: 5 August 2024 Deponent: Hannah Brinkley Number of Statement: First Exhibits: HB-1 to HB-7
This witness statement has been prepared by Calderwood & Harkness LLP, solicitors for the Claimant/Applicant, Thalassa Shipping & Logistics SA. It is filed in support of the Claimant/Applicant's application, made without notice to the Defendant/Respondent, for an interim third-party debt order pursuant to CPR Part 72 against Meridian Trust Bank Ltd.
FIRST WITNESS STATEMENT OF HANNAH BRINKLEY
Section 1: Introduction and Qualifications
1.  My full name is Hannah Brinkley. I am a Lead Associate in the Litigation (General) department of Calderwood & Harkness LLP, a law firm authorised and regulated by the Solicitors Regulation Authority, with offices at 45 Moorgate, London EC2R 6AR. I have been qualified as a solicitor of England and Wales since 2016 and have practised in the field of international commercial litigation and enforcement throughout my career.
2.  I have day-to-day conduct of the enforcement proceedings brought by Thalassa Shipping & Logistics SA ("TSL" or the "Claimant") against Korinthian Maritime Holdings Ltd. ("KMH" or the "Defendant") in these proceedings. I work under the supervision of Samuel Eklund, the Responsible Partner with overall supervisory conduct of the matter, and Linda Osei, the Billing Partner. I am further assisted by Patrick Gallagher, a Working Associate, who has been instrumental in the preparation of the evidence and exhibits filed in support of this application.
3.  I make this witness statement in support of TSL's application for an interim third-party debt order (an "Interim TPDO") pursuant to CPR Part 72 against Meridian Trust Bank Ltd. ("Meridian Trust" or the "Third Party"), which holds debts owed to KMH in the form of account balances standing to the credit of KMH's accounts at Meridian Trust's London branch.
4.  The facts stated in this witness statement are within my own knowledge, save where I indicate otherwise. Where the matters stated are not within my own knowledge, they are derived from documents in the files of Calderwood & Harkness LLP, from information provided by TSL and its officers, from documents produced in the course of the LCIA arbitration proceedings described below, from information provided by Hartwell Pemberton LLP (the forensic accountants engaged on behalf of TSL), and from other sources which I identify in each instance. Where statements are made on the basis of information or belief, I have identified them as such and have stated the source and basis for that information or belief.
5.  I confirm that I understand the duty of a witness to assist the court and that I have complied with that duty. I confirm that the contents of this witness statement are true to the best of my knowledge and belief.
6.  There is now produced and shown to me an exhibit bundle marked "HB-1" through "HB-7" consisting of the documents to which I refer in this witness statement. Where I refer to page numbers in the exhibits, I refer to the internal pagination of the exhibit bundle prepared for the purposes of this application.
Section 2: The Parties
2.1 The Claimant — Thalassa Shipping & Logistics SA
7.  Thalassa Shipping & Logistics SA ("TSL") is a société anonyme organised under the laws of the Hellenic Republic (Greece), with its registered office at 14 Akti Miaouli, Piraeus 185 35, Greece. TSL's Greek Tax Identification Number (AFM) is EL-801456729.
8.  TSL is a strategic private shipping and logistics company, founded in 1987 by the Papadimitriou family. It has grown over the past three and a half decades into one of the most significant privately held shipping enterprises operating in the eastern Mediterranean and globally. TSL operates a fleet of 34 vessels, which comprises a diversified portfolio of bulk carriers, tankers, and container feeders engaged in international trade. For the financial year ended 31 December 2023, TSL reported annual revenues of approximately €620 million.
9.  TSL's ownership structure is as follows: approximately 72% of its issued share capital is held by the Papadimitriou Family Trust, a discretionary trust established under Greek law, the beneficiaries of which are members of the Papadimitriou family. The remaining 28% is held by Aegean Capital Partners SA, a Greek-incorporated investment vehicle.
10.  The principal officers of TSL relevant to these proceedings are:
(a) Mr. Nikolaos Papadimitriou, Chairman and Chief Executive Officer;
(b) Ms. Elena Stavridis, Chief Financial Officer;
(c) Captain Dimitrios Kouretas, Head of Chartering and Operations; and
(d) Ms. Ioanna Christodoulou, General Counsel.
11.  TSL is the award creditor in respect of LCIA Award No. 224718 dated 28 June 2024, the enforcement of which is the subject of these proceedings.
2.2 The Defendant — Korinthian Maritime Holdings Ltd.
12.  Korinthian Maritime Holdings Ltd. ("KMH") is a private limited company incorporated in Nicosia, Cyprus, under the Companies Law, Cap. 113 of the Laws of the Republic of Cyprus, with company registration number HE 387421. KMH's registered address is 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.
13.  KMH is a vessel-owning and chartering company which, at the material times, controlled a fleet of approximately 18 dry-bulk carriers through a network of single-purpose vehicle ("SPV") subsidiaries registered in various jurisdictions, including the British Virgin Islands, Singapore, and Cyprus. KMH acted as the disponent owner of the vessels in question, entering into charter-party agreements with charterers such as TSL through its role as the central contracting entity within its corporate group.
14.  KMH is beneficially owned by the Volkov family through a series of British Virgin Islands and Cypriot holding structures. The ultimate beneficial owner of KMH is Mr. Andrei Volkov, who, as I shall explain below, acts as a de facto director of KMH and exercises substantial operational control over the company and its subsidiaries, notwithstanding that he is not formally registered as a director in the Cypriot company registry. The principal officers and individuals relevant to these proceedings are:
(a) Mr. Andrei Volkov, ultimate beneficial owner and de facto director;
(b) Mr. Sergei Volkov, a registered director of KMH;
(c) Ms. Marina Kazakova, Chief Financial Officer; and
(d) Mr. Alexei Demidov, Director of Fleet Operations.
15.  Prior to the dispute giving rise to the LCIA arbitration, KMH had an estimated net asset value of approximately USD $280 million. I make this observation on the basis of financial information disclosed by KMH during the LCIA arbitration proceedings and the preliminary analysis carried out by Hartwell Pemberton LLP.
16.  KMH is the award debtor and, following the grant of permission to enforce the award as a judgment on 2 August 2024, it is the judgment debtor in these proceedings.
17.  KMH's solicitors on record in these proceedings are Harkness Whitford & Co. (SRA No. 614823), of 12 Fetter Lane, London EC4A 1JP. The matter is handled at Harkness Whitford by Mr. Richard Harkness (Senior Partner), Ms. Catherine Whitford (Partner), and Mr. James Thornbury (Associate).
2.3 The Third Party — Meridian Trust Bank Ltd.
18.  Meridian Trust Bank Ltd. ("Meridian Trust") is a bank incorporated in England and Wales as a private company limited by shares, with its principal office at 50 Lombard Street, London EC3V 9EA, United Kingdom. Meridian Trust is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
19.  Meridian Trust serves as KMH's primary London correspondent bank. As I shall explain in greater detail below, KMH maintains at least one active sterling-denominated account and at least one active US dollar-denominated account at Meridian Trust's London branch. These accounts are used for the receipt of charter hire, freight revenues, and trade receivables arising from KMH's international shipping operations. Meridian Trust accordingly holds debts (in the form of account balances standing to KMH's credit) which are amenable to attachment by means of a third-party debt order under CPR Part 72.
Section 3: Background to the Dispute and the LCIA Award
3.1 The Charter-Party Agreements
20.  The underlying dispute between TSL and KMH arises out of three time charter-party agreements (the "Charters") entered into between TSL (as charterer) and KMH (as disponent owner) between 2019 and 2021. The Charters relate to the following vessels:
(a) M/V *Aegean Fortuna — IMO Number 9784521; vessel type: Supramax Bulk Carrier; deadweight tonnage: 58,200 DWT; flag state: Republic of the marshall Islands; SPV owner: Dnepr Shipholding Inc. (a BVI-incorporated company and wholly-owned subsidiary of KMH). The time charter-party for the M/V Aegean Fortuna was executed on 15 March 2019 (the "Aegean Fortuna Charter*").
(b) M/V *Crimson Horizon — IMO Number 9801334; vessel type: Handymax Bulk Carrier; deadweight tonnage: 37,500 DWT; flag state: Republic of Liberia; SPV owner: Korinthian Bulkers (Singapore) Pte. Ltd. (a Singapore-incorporated company and wholly-owned subsidiary of KMH). The time charter-party for the M/V Crimson Horizon was executed on 22 January 2020 (the "Crimson Horizon Charter*").
(c) M/V *Volga Spirit — IMO Number 9756892; vessel type: Panamax Bulk Carrier; deadweight tonnage: 76,400 DWT; flag state: Republic of Cyprus; SPV owner: Dnepr Shipholding Inc. The time charter-party for the M/V Volga Spirit was executed on 10 June 2021 (the "Volga Spirit Charter*").
21.  All three Charters were governed by English law. Each Charter 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 as the seat of arbitration. The inclusion of these arbitration clauses in each Charter was consistent with standard market practice in the international shipping industry and reflected the parties' agreement that any disputes arising out of or in connection with the Charters would be determined by LCIA arbitration in London.
22.  Under each of the three Charters, KMH acted as disponent owner. The vessels were owned by KMH's SPV subsidiaries, Dnepr Shipholding Inc. and Korinthian Bulkers (Singapore) Pte. Ltd., but were let to TSL on time charter through KMH in its capacity as the contracting entity within the KMH group. The Charters were negotiated over a period of several years during which the commercial relationship between TSL and KMH was productive and profitable for both parties. The chartering arrangements provided TSL with access to dry-bulk tonnage required for its global shipping operations, while KMH received hire payments which constituted a significant revenue stream for its fleet.
3.2 KMH's Repudiatory Breaches
23.  Beginning in mid-2022, KMH engaged in a pattern of repudiatory breach of the three Charters. The breaches in respect of each vessel were as follows:
(a) M/V *Aegean Fortuna* — Wrongful Early Redelivery. On 18 June 2022, KMH wrongfully redelivered the M/V Aegean Fortuna to TSL approximately 14 months prior to the contractual redelivery date. This early redelivery was effected without contractual justification and in breach of KMH's obligation to maintain the vessel on hire for the full charter period. TSL was thereby deprived of the hire income and the commercial benefit of the vessel for the unexpired period of the Aegean Fortuna Charter. TSL treated this as a repudiatory breach and accepted the repudiation.
(b) M/V *Crimson Horizon* — Failure to Pay Hire. From 1 July 2022 onwards, KMH ceased making the contractually required hire payments in respect of the M/V Crimson Horizon. Hire arrears totalling £4,280,000 accrued over the period from 1 July 2022 to 15 September 2022. Despite repeated demands for payment, KMH failed to remit any portion of the outstanding hire. On 15 September 2022, TSL exercised its contractual right to withdraw the vessel from KMH's service, having given proper notice in accordance with the anti-technicality clause in the Crimson Horizon Charter. TSL treated the non-payment as a repudiatory breach and accepted the repudiation.
(c) M/V *Volga Spirit* — Fabricated Off-Hire Deductions. In respect of the M/V Volga Spirit, KMH applied a series of off-hire deductions to its hire payments, totalling approximately £2,740,000. These deductions were found by the Tribunal to be fabricated, lacking any legitimate basis under the off-hire clause of the Volga Spirit Charter. The Tribunal concluded that the purported off-hire events either did not occur at all or were attributable to KMH's own actions or omissions rather than to any deficiency in the vessel or TSL's performance.
24.  The combined effect of these breaches was to deprive TSL of a very substantial proportion of the commercial benefit it was entitled to derive from the three Charters. The circumstances strongly suggested a coordinated and deliberate course of conduct by KMH designed to extract itself from its charter obligations at a time when prevailing market rates for dry-bulk tonnage had declined, making the Charters commercially unfavourable from KMH's perspective.
3.3 The LCIA Arbitration
25.  In light of KMH's repudiatory breaches, TSL commenced arbitration proceedings under the LCIA Rules. A Request for Arbitration was filed with the LCIA on 14 November 2022, bearing LCIA Case Reference No. 224718.
26.  The arbitral tribunal (the "Tribunal") was constituted on 8 February 2023. The members of the Tribunal were as follows:
(a) Presiding Arbitrator: Sir Malcolm Fenton-Clarke, appointed by the LCIA Court;
(b) Co-Arbitrator (nominated by TSL as Claimant): Professor Athena Drakopoulos; and
(c) Co-Arbitrator (nominated by KMH as Respondent): Dr. Henrik Dalmqvist.
27.  Ms. Fiona Beckett was appointed as Tribunal Secretary. The Tribunal's appointment was confirmed by the LCIA Court without challenge from either party, and both parties confirmed the Tribunal's jurisdiction.
28.  The proceedings advanced through written submissions, documentary disclosure, and witness evidence over the course of several months. An evidentiary hearing took place from 11 September 2023 through 22 September 2023, a period of ten hearing days, at the International Dispute Resolution Centre ("IDRC") in London. During the hearing, the Tribunal heard from factual witnesses called by both parties, including witnesses of fact from TSL's chartering and operations departments and from KMH's management. Expert evidence on quantum, including market rate analysis, was also presented by both sides. The hearing was hard-fought, with KMH vigorously contesting both liability and quantum across all three Charters.
29.  Following post-hearing submissions and a period of deliberation, the Tribunal issued its Final Award on 28 June 2024 (the "Award"). A copy of the Award is exhibited at Exhibit HB-3.
3.4 The Award
30.  The Tribunal found in favour of TSL on all heads of claim and rendered the Award in TSL's favour, as follows:
(a) Damages for wrongful early redelivery of M/V *Aegean Fortuna*: £42,300,000. This sum represented the net present value of the hire and other contractual payments that TSL would have received over the unexpired period of the Aegean Fortuna Charter, less the costs saved by TSL and any mitigation achieved through employment of the vessel on alternative fixtures.
(b) Outstanding hire and damages for M/V *Crimson Horizon*: £28,150,000, comprising £4,280,000 in outstanding hire arrears and £23,870,000 in loss of bargain damages. The loss of bargain damages reflected the difference between the contractual hire rate and the market rate for equivalent tonnage over the unexpired charter period, capitalised to a present value as of the date of breach.
(c) Restitution of fabricated off-hire deductions for M/V *Volga Spirit*: £2,740,000, being the aggregate amount of the off-hire deductions which the Tribunal found to have been improperly and dishonestly applied.
(d) Loss of profit / market differential damages: £16,480,000. This head of damage reflected TSL's loss of market opportunity and the additional costs incurred in re-chartering replacement tonnage at a time when market conditions had shifted.
(e) Pre-award interest: £6,780,000, calculated at the rate of 5.25% per annum simple from the respective dates of breach through to the date of the Award (28 June 2024).
31.  The total sum awarded to TSL in damages and pre-award interest was accordingly £96,450,000. At the prevailing exchange rate as of 28 June 2024 (approximately £1 = USD $1.2441), this equated to approximately USD $120,000,000.
32.  The Tribunal further ordered that the costs of the arbitration be allocated as to 85% to KMH and as to 15% to TSL, reflecting TSL's near-complete success on all issues. The costs were assessed as follows:
(a) LCIA administrative charges and tribunal fees and expenses: £3,240,000 (85% = £2,754,000 payable by KMH); and
(b) TSL's legal costs (including solicitors' and counsel's fees, expert fees, and disbursements): £8,910,000 (85% = £7,573,500 payable by KMH).
33.  The total costs allocation against KMH was accordingly £12,150,000 (being 85% of the combined costs of £12,150,000), with the result that the grand total of the Award (including costs) was £108,600,000.
34.  The Tribunal further ordered that post-award interest should run at the rate of 5.25% per annum simple on unpaid sums from 29 June 2024 (the day following the date of the Award) until the date of payment or further order.
Section 4: The Enforcement Proceedings in England and Wales
4.1 Application Under Section 66 of the Arbitration Act 1996
35.  On 15 July 2024, TSL filed an application in the Commercial Court of the Business and Property Courts of England and Wales to enforce the Award as a judgment of the court, pursuant to section 66 of the Arbitration Act 1996. The application was issued under Claim No. CL-2024-000487.
36.  The application was supported by my second witness statement (filed in those proceedings) and by the exhibits thereto, which included the Award itself and evidence establishing that the requirements for enforcement under section 66 were satisfied. In particular, the evidence demonstrated that the Award was a valid and binding LCIA award, that it was made at a London seat, that it was a final award disposing of all claims and counterclaims, and that there was no pending application to challenge or set aside the Award at the time the application was filed.
37.  On 2 August 2024, Mr. Justice Ashworth granted permission to enforce the Award as a judgment of the Commercial Court. A sealed copy of the order of Mr. Justice Ashworth dated 2 August 2024 is exhibited at Exhibit HB-1. The effect of that order is that the Award is now enforceable as a judgment of the Commercial Court for the sum of £108,600,000, together with post-award interest at the rate of 5.25% per annum simple on £96,450,000 from 29 June 2024 until the date of payment or further order.
4.2 Worldwide Freezing Order
38.  In parallel with the section 66 application, TSL applied to the Commercial Court for a worldwide freezing order (a "WFO") against KMH. The application was made without notice to KMH, supported by evidence establishing a good arguable case on the merits (namely, the Award itself), a real risk of dissipation of assets, and the existence of assets against which the order could bite.
39.  On 16 July 2024, Mr. Justice Ashworth granted a worldwide freezing order 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 whether located within or outside the jurisdiction of this Court, up to the value of £108,600,000. A sealed copy of the WFO dated 16 July 2024 is exhibited at Exhibit HB-2.
40.  The WFO was served on KMH through its solicitors, Harkness Whitford & Co., on 17 July 2024. KMH filed evidence in response and the WFO came back before the court on the return date of 30 July 2024. On that occasion, Mr. Justice Ashworth continued the WFO with certain modifications which are not material to this application. The order made on the return date, dated 30 July 2024, is also exhibited at Exhibit HB-2.
41.  The WFO includes ancillary asset disclosure provisions, pursuant to which KMH was required to disclose, by way of affidavit sworn by a responsible officer, all of its assets worldwide exceeding £25,000 in value, whether in its own name or not, and whether solely or jointly owned. The disclosure was required to include, inter alia, the nature, value, and location of each asset, the identity of any bank or financial institution at which KMH holds accounts, and the balance or approximate balance standing to the credit of each such account.
42.  As I describe in greater detail below at Section 6 of this statement, KMH's compliance with the asset disclosure order has been incomplete and delayed.
4.3 KMH's Non-Compliance and Failure to Pay
43.  Despite the grant of permission to enforce the Award as a judgment and the existence of the WFO, KMH has not made any voluntary payment whatsoever toward satisfaction of the Award or the enforcement judgment.
44.  A pre-enforcement demand letter was sent by Calderwood & Harkness LLP to KMH's solicitors, Harkness Whitford & Co., on 8 July 2024. The letter demanded payment of the full amount of the Award within 14 days. A copy of that letter is exhibited at Exhibit HB-4. The 14-day deadline expired on 22 July 2024 without any payment being made and without any substantive response from Harkness Whitford indicating an intention to pay. No payment has been received from KMH at any time since.
45.  KMH has indicated, through correspondence from Harkness Whitford & Co., that it intends to challenge the Award pursuant to sections 68 and/or 69 of the Arbitration Act 1996. Section 68 provides for challenge on the ground of serious irregularity, and section 69 provides for appeal on a point of law. As at the date of this witness statement, 4 August 2024, no such application has been filed by KMH. I note for the Court's information that KMH subsequently filed a combined application under sections 68 and 69 on 19 August 2024, but that application post-dates this witness statement and, importantly, no application for a stay of enforcement has been made or granted. The enforcement judgment therefore remains fully effective and enforceable.
46.  In these circumstances, TSL is entitled to take all available steps to execute against KMH's assets in satisfaction of the enforcement judgment.
Section 5: Information Regarding KMH's Accounts at Meridian Trust Bank Ltd.
5.1 Identification of Accounts
47.  Through investigations conducted on behalf of TSL, it has been ascertained that KMH maintains at least one active sterling-denominated account and at least one active US dollar-denominated account at Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA. As stated above, Meridian Trust serves as KMH's primary London correspondent bank for the receipt of charter hire, freight revenues, and trade receivables arising from KMH's international shipping operations.
48.  The investigations to which I refer have been carried out by Hartwell Pemberton LLP ("Hartwell Pemberton" or "HP"), a firm of forensic accountants with offices at 25 Old Broad Street, London EC2N 1HN. Hartwell Pemberton was engaged by Calderwood & Harkness LLP on behalf of TSL for the specific purposes of tracing KMH's global assets, mapping KMH's corporate structure, and identifying assets against which the enforcement judgment might be executed. The lead individuals at Hartwell Pemberton on this engagement are Ms. Rebecca Saunders (Partner, Forensic and Investigative Services) and Mr. Mark Huxley (Director).
49.  The information regarding KMH's accounts at Meridian Trust was obtained through the following sources:
(a) Documents produced in the LCIA arbitration. During the course of the LCIA arbitration, KMH produced a substantial body of documentation pursuant to the Tribunal's disclosure orders. Among the documents produced were charter-party hire payment instructions and bank statements which identified Meridian Trust Bank Ltd. as the receiving bank for hire payments under the three Charters. Relevant extracts from these documents are exhibited at Exhibit HB-6. These documents confirmed that KMH designated its accounts at Meridian Trust as the primary accounts for the receipt of hire payments from TSL and other charterers.
(b) Asset disclosure pursuant to the WFO. As noted above, the WFO granted on 16 July 2024 (and continued on 30 July 2024) included ancillary asset disclosure provisions requiring KMH to disclose all assets exceeding £25,000 in value. To the limited extent that KMH has complied with this order — and as I note in Section 6 below, compliance has been incomplete — the disclosure confirms the existence of accounts at Meridian Trust Bank Ltd. in KMH's name.
(c) Hartwell Pemberton's Preliminary Asset Tracing Report. Hartwell Pemberton prepared a Preliminary Asset Tracing Report dated 15 August 2024 (the "HP Preliminary Report"), relevant extracts from which are exhibited at Exhibit HB-5. The HP Preliminary Report identified and corroborated the existence of KMH's accounts at Meridian Trust through independent analysis of publicly available corporate filings, financial information obtained from shipping databases, and analysis of the documentary evidence produced in the arbitration. The HP Preliminary Report further analysed the historical pattern of transactions flowing through the London correspondent accounts and confirmed that the accounts remain active.
50.  Based on the foregoing sources, taken together, I believe that substantial sums are standing to the credit of KMH's accounts at Meridian Trust Bank Ltd. at the date of this statement.
5.2 Estimated Balances
51.  Based on the information available to Calderwood & Harkness and Hartwell Pemberton, the combined balances across KMH's accounts at Meridian Trust Bank Ltd. are believed to be in excess of £18,000,000 at the date of this statement. While this sum represents only a fraction of the total enforcement judgment (£108,600,000 plus post-award interest), it constitutes a very significant sum which would represent a material contribution to the satisfaction of that judgment.
52.  The basis for this estimate is as follows:
(a) Pattern of charter hire receipts. Hartwell Pemberton's analysis of the historical transaction flow through KMH's accounts at Meridian Trust, derived from the arbitration disclosure materials, demonstrates that the accounts have consistently received substantial inflows of charter hire and freight revenues. The analysis of transaction patterns over the period 2019–2023 indicates average monthly inflows in the order of £2–4 million, with significant seasonal and market-related fluctuations. The accounts have historically maintained material credit balances.
(b) WFO asset disclosure. To the limited extent that KMH has provided asset disclosure in compliance with the WFO, the information disclosed is consistent with the accounts holding significant balances. I note, however, that KMH's disclosure has been incomplete and I place limited reliance on its content for this purpose.
(c) Hartwell Pemberton's analysis. The HP Preliminary Report, taking into account the above sources and applying analytical techniques to project likely current balances, concludes that the combined balances across KMH's accounts at Meridian Trust are likely to be in excess of £18,000,000. Ms. Saunders and Mr. Huxley have expressed the view that this estimate is conservative and that the actual balances may be materially higher.
53.  The precise balance standing to the credit of KMH's accounts at Meridian Trust will be ascertained and confirmed upon service of the interim third-party debt order on Meridian Trust Bank Ltd. Meridian Trust will at that point be required to confirm the balance and to freeze the relevant sums.
Section 6: Evidence of Risk of Dissipation and Urgency
6.1 KMH's Pattern of Asset Dissipation
54.  Since the issuance of the Final Award on 28 June 2024, KMH has engaged in what I can only describe as a concerted and systematic pattern of asset-shifting, evidently designed to frustrate TSL's enforcement of the Award. I set out the relevant evidence below.
55.  First, by way of background, KMH controls a complex network of subsidiaries and single-purpose vehicles spanning multiple jurisdictions. The key entities within this network, as identified by Hartwell Pemberton, include:
(a) Korinthian Bulkers (Singapore) Pte. Ltd., a company incorporated in Singapore, which serves as the registered owner of certain vessels in the KMH fleet, including the M/V Crimson Horizon;
(b) Dnepr Shipholding Inc., a company incorporated in the British Virgin Islands with company number 2014876, which serves as the registered owner of other vessels in the KMH fleet, including the M/V Aegean Fortuna and the M/V Volga Spirit;
(c) Korinthian DMCC, a company incorporated in the Dubai Multi Commodities Centre, United Arab Emirates, which, based on the HP Preliminary Report, appears to serve as a trading and revenue collection vehicle for KMH's Middle East operations; and
(d) Oceangate Ventures Ltd., a company incorporated in Cyprus with registration number HE 401293, which serves as an intermediate holding company for a number of the fleet SPVs within the KMH corporate group.
56.  This multi-jurisdictional corporate structure is not, in itself, unusual in the international shipping industry. However, Hartwell Pemberton's investigation has uncovered evidence which strongly suggests that KMH has actively exploited this structure to frustrate enforcement of the Award.
57.  In particular, the HP Preliminary Report identifies the following matters of concern:
(a) Post-Award Transfers. Hartwell Pemberton's investigation has identified transfers from KMH accounts to entities associated with Mr. Andrei Volkov, the ultimate beneficial owner and de facto director of KMH, in the period between the date of the Award (28 June 2024) and the date on which the WFO was obtained (16 July 2024) — a window of approximately 18 days. The amounts and destinations of these transfers are detailed in the relevant extracts of the HP Preliminary Report exhibited at Exhibit HB-5 and in the evidence of post-award transfers exhibited at Exhibit HB-7. The timing of these transfers, immediately following the adverse award, is highly suggestive of a deliberate strategy to move assets beyond the reach of TSL's enforcement efforts.
(b) Attempted Sale of M/V *Crimson Horizon*. Hartwell Pemberton's investigation has revealed evidence that KMH, through its subsidiary Korinthian Bulkers (Singapore) Pte. Ltd., attempted to sell the M/V Crimson Horizon (IMO 9801334) following the issuance of the Award. Given that the M/V Crimson Horizon is one of the vessels at the centre of the dispute and that any sale proceeds would be a natural target for enforcement, the timing and circumstances of the attempted sale are deeply concerning. If the sale had been completed, the proceeds would likely have been routed to accounts outside England and Wales and potentially beyond the effective reach of this Court.
(c) Restructuring of Cypriot Holding Entities. Hartwell Pemberton has identified evidence that KMH has undertaken or initiated corporate restructuring steps in relation to its Cypriot holding entities, and in particular Oceangate Ventures Ltd. (HE 401293), which serves as the intermediate holding company for certain fleet SPVs. The nature and timing of these restructuring steps are consistent with an attempt to insulate fleet assets from TSL's enforcement efforts by interposing additional layers of corporate separation or by transferring beneficial ownership interests.
(d) Dispersal of Fleet Assets. More broadly, KMH has dispersed its fleet of approximately 18 dry-bulk carriers across multiple flag states and SPV structures in a manner which, in the view of Calderwood & Harkness and Hartwell Pemberton, is specifically designed to complicate enforcement. Vessels are registered under the flags of multiple different states, owned through SPVs in different jurisdictions, and managed through separate management companies. While this structure predates the dispute to some extent, the evidence suggests that it has been reinforced and made more complex in the post-award period.
58.  Taken together, these matters demonstrate a clear and ongoing pattern of conduct by KMH which is directed at putting its assets beyond the reach of TSL.
6.2 Specific Risk to London Accounts
59.  Against this background, there is in my view a real and immediate risk that KMH will seek to transfer or deplete the funds held at Meridian Trust Bank Ltd. before TSL can execute against them by means of a third-party debt order.
60.  I make this assessment on the basis of the following matters:
(a) As described above, KMH has already engaged in a pattern of post-award asset-shifting, transferring funds to associated entities and individuals in the period between the Award and the WFO. There is every reason to believe that, absent a freezing order specifically targeting the Meridian Trust accounts, KMH would continue this pattern.
(b) KMH's compliance with the asset disclosure provisions of the WFO has been incomplete and delayed. KMH was required to provide a sworn affidavit disclosing all assets exceeding £25,000 within a specified timeframe. The disclosure ultimately provided, through Harkness Whitford & Co., was materially incomplete. Significant categories of assets were omitted or described in vague and unverifiable terms. This pattern of incomplete disclosure suggests a lack of good faith on KMH's part and a continuing intention to conceal assets from TSL.
(c) KMH has access to sophisticated international banking infrastructure. Through its network of subsidiaries and SPVs, KMH maintains banking relationships in multiple jurisdictions. Funds standing to the credit of accounts at Meridian Trust could readily be transferred to accounts at other banks, including — by way of example — accounts at Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in the name of Korinthian Bulkers (Singapore) Pte. Ltd., or to accounts at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai) in the name of Korinthian DMCC. Such transfers could be effected rapidly and, once completed, the funds would be outside the immediate reach of this Court.
(d) KMH has demonstrated through its conduct a willingness to move assets rapidly across jurisdictions in order to frustrate enforcement. The post-award transfers identified by Hartwell Pemberton were executed within days of the Award and before any freezing order could be obtained.
61.  I am aware that the WFO is in place and prohibits KMH from dealing with its assets. However, the WFO operates in personam against KMH and does not, in itself, bind Meridian Trust as a third party to the proceedings. Although Meridian Trust was served with notice of the WFO and is thereby subject to the Penal Notice attaching to the order, the protection afforded by the WFO is, in my respectful submission, insufficient to eliminate the risk of dissipation in respect of the Meridian Trust accounts. A third-party debt order operates in rem, directly attaching the debt owed by Meridian Trust to KMH, and provides a significantly more secure mechanism for protecting and ultimately executing against these funds.
6.3 Urgency.  
62.  For the reasons set out above, an interim third-party debt order is necessary as a matter of urgency to prevent the dissipation of the funds at Meridian Trust before a final hearing can be convened and a final third-party debt order can be made.
63.  TSL is not limiting its enforcement efforts to the English jurisdiction. TSL is simultaneously pursuing enforcement of the Award in multiple jurisdictions through local counsel, as follows:
(a) Cyprus: Enforcement proceedings have been commenced in the Nicosia District Court under Case No. 2247/2024, filed on 9 August 2024. A freezing injunction was granted by the Nicosia District Court on 12 August 2024. TSL is represented in Cyprus by Kyprianos Makrides & Partners.
(b) Singapore: Enforcement proceedings have been commenced by way of Originating Summons No. OS 872/2024, filed in the High Court of Singapore on 14 August 2024. TSL is represented in Singapore by Straits Meridian LLP.
(c) United Arab Emirates: Enforcement proceedings have been commenced under Case No. 1893/2024, filed on 22 August 2024 in the appropriate court in the UAE. TSL is represented in the UAE by Al-Rashid Hatem & Associates.
64.  However, the English enforcement constitutes a critical first recovery step and the most immediate prospect for the realisation of funds in satisfaction of the judgment. The existence of enforcement proceedings in other jurisdictions does not diminish the urgency of securing the funds at Meridian Trust. On the contrary, the multi-jurisdictional nature of KMH's asset-shifting activities underscores the need to act quickly in each jurisdiction where assets have been identified.
65.  I would further observe that the amounts believed to be held at Meridian Trust (in excess of £18,000,000) represent only a small fraction of the total enforcement judgment (£108,600,000 plus post-award interest). If these funds are dissipated before they can be secured, TSL's ability to achieve even a partial recovery in England will be materially prejudiced, and the enforcement proceedings as a whole will be significantly set back.
Section 7: The Application for an Interim Third-Party Debt Order
7.1 Legal Basis
66.  CPR Part 72 governs the procedure for third-party debt orders. Under CPR r. 72.2(1), a judgment creditor may apply for a third-party debt order where a third party owes a debt to the judgment debtor and the judgment creditor wishes to have that debt paid to the judgment creditor in or towards satisfaction of the judgment debt.
67.  TSL is a judgment creditor by virtue of the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment of the Commercial Court. KMH is the judgment debtor. Meridian Trust is a third party which owes debts to KMH in the form of account balances standing to the credit of KMH's accounts at its London branch.
68.  The application is made in the first instance for an interim order under CPR r. 72.4. The effect of such an interim order is to require Meridian Trust Bank Ltd. to freeze the funds standing to KMH's credit at Meridian Trust and to restrain KMH from making any withdrawals from or other disposals of those funds pending the final hearing. At the final hearing (the "show cause" hearing), the Court will consider whether a final third-party debt order should be made, directing payment by Meridian Trust to TSL.
69.  The application is made without notice to KMH and to Meridian Trust, as is the standard and prescribed procedure for interim third-party debt orders under CPR r. 72.3, which provides that the application should be made without notice.
7.2 Sums Sought
70.  The interim third-party debt order is sought in respect of all sums standing to the credit of any accounts held by KMH at Meridian Trust Bank Ltd. The order is sought up to the total amount of the enforcement judgment, being:
(a) The principal sum awarded: £96,450,000;
(b) Costs of the arbitration allocated to KMH: £12,150,000;
(c) Post-award interest at 5.25% per annum simple on £96,450,000, running from 29 June 2024 and continuing to accrue until the date of payment or further order; and
(d) The costs of the enforcement proceedings (to be assessed).
71.  A sealed copy of the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce the Award is exhibited at Exhibit HB-1.
7.3 Information Required Under CPR r. 72.3
72.  CPR r. 72.3 requires the following information to be provided in the application for a third-party debt order. I set out that information below:
(a) Name and address of the judgment debtor: Korinthian Maritime Holdings Ltd., 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.
(b) Name and address of the third party: Meridian Trust Bank Ltd., 50 Lombard Street, London EC3V 9EA, United Kingdom.
(c) Amount of the judgment debt remaining unpaid: £108,600,000, together with post-award interest at 5.25% per annum simple on £96,450,000 from 29 June 2024. No sums have been recovered by TSL against KMH at the date of this application. The entire judgment debt remains outstanding.
(d) Sources of information and documents confirming the third party's indebtedness: As set out in Section 5 of this statement, the existence of KMH's accounts at Meridian Trust has been confirmed through (i) documents produced in the LCIA arbitration, (ii) asset disclosure made pursuant to the WFO, and (iii) the HP Preliminary Report. Relevant evidence is exhibited at Exhibits HB-5, HB-6, and HB-7.
73.  I further confirm, to the best of my knowledge and belief, that KMH has not applied for a stay of enforcement of the judgment, and no stay of enforcement is currently in force. As noted above, KMH has indicated an intention to challenge the Award under sections 68 and/or 69 of the Arbitration Act 1996, but no such application had been filed at the date of this statement. I note for the Court's information that a combined set-aside application under sections 68 and 69 was subsequently filed by KMH on 19 August 2024. However, no application for a stay of enforcement has been made in connection with that set-aside application, and no stay has been granted.
Section 8: Supporting Evidence — Hartwell Pemberton's Asset Tracing Findings
74.  As I have referred to throughout this statement, Calderwood & Harkness engaged Hartwell Pemberton LLP to carry out forensic investigative and asset tracing work on behalf of TSL. Hartwell Pemberton is a leading firm of forensic accountants specialising in asset tracing, fraud investigation, and financial intelligence, with offices at 25 Old Broad Street, London EC2N 1HN. The engagement has been led by Ms. Rebecca Saunders (Partner, Forensic and Investigative Services) and Mr. Mark Huxley (Director), both of whom have extensive experience in international asset tracing and recovery in the maritime sector and beyond.
75.  Hartwell Pemberton was initially engaged on 3 July 2024, shortly after the issuance of the Award, with a mandate to identify and trace KMH's global assets, to map the KMH corporate structure and the web of subsidiaries and SPVs through which KMH's assets (including its fleet) are held, and to provide intelligence in support of TSL's enforcement strategy.
76.  Hartwell Pemberton produced the HP Preliminary Report on 15 August 2024. Relevant extracts of the HP Preliminary Report are exhibited at Exhibit HB-5. I summarise the key findings of the HP Preliminary Report below, insofar as they are relevant to this application:
(a) KMH's Accounts at Meridian Trust Bank Ltd. The HP Preliminary Report confirms the existence of KMH's accounts at Meridian Trust, based on independent analysis of documentary evidence produced in the LCIA arbitration, publicly available information from shipping databases and corporate registries, and financial intelligence. The HP Preliminary Report provides analysis of historical transaction flows through the Meridian Trust accounts, demonstrating that these accounts have been and continue to be actively used for the receipt and disbursement of charter hire, freight revenues, and other shipping-related receivables.
(b) KMH's Corporate Structure. The HP Preliminary Report maps the KMH corporate structure in detail, tracing the holding chain from KMH at the apex through Oceangate Ventures Ltd. (Cyprus, HE 401293) as the intermediate holding company, down to the fleet SPVs including Dnepr Shipholding Inc. (BVI, Company No. 2014876) and Korinthian Bulkers (Singapore) Pte. Ltd. The report also identifies Korinthian DMCC (Dubai, UAE) as a significant operational entity within the group. The corporate structure is characterised by multiple layers of holding companies, cross-border ownership chains, and the use of nominee arrangements, all of which serve to complicate the identification and enforcement against assets within the group.
(c) Post-Award Asset Transfers. The HP Preliminary Report identifies evidence of post-award asset transfers between KMH entities. In particular, the report documents transfers from KMH's accounts (including, it is believed, accounts at Meridian Trust) to accounts held in the names of affiliated entities and, in some cases, individuals associated with Mr. Andrei Volkov, in the period between 28 June 2024 and 16 July 2024. The report concludes that the timing and nature of these transfers are consistent with a deliberate strategy of dissipation.
(d) Assets in Other Jurisdictions. The HP Preliminary Report identifies assets held by KMH and its associated entities in jurisdictions outside England and Wales, including but not limited to:
(i) Accounts at Pinnacle Bank (Singapore) Ltd. (6 Battery Road, #20-01, Singapore 049909) in the name of Korinthian Bulkers (Singapore) Pte. Ltd.;
(ii) Accounts at Emirates Gulf Commercial Bank PJSC (Gate Village 3, DIFC, Dubai) in the name of Korinthian DMCC; and
(iii) Vessel assets, being the fleet of approximately 18 dry-bulk carriers registered under various flags and owned through the SPV subsidiaries.
77.  The HP Preliminary Report is a substantial and detailed document. I have exhibited only those extracts which are directly relevant to this application. The full report is available to the Court if required. Hartwell Pemberton's investigation is continuing, and further reports will be produced as the investigation progresses and additional information becomes available.
78.  I believe that the findings of the HP Preliminary Report, taken together with the other evidence referred to in this statement, provide a clear and compelling evidential basis for the grant of an interim third-party debt order against Meridian Trust Bank Ltd.
Section 9: Exhibits
79.  I refer in this witness statement to the following exhibits, which are contained in the accompanying exhibit bundle:
80.  Each exhibit bears the identifying mark shown above and has been paginated for the convenience of the Court.
Section 10: Conclusion and Relief Sought
81.  In light of the matters set out in this witness statement, I respectfully summarise the basis upon which TSL seeks an interim third-party debt order as follows:
(a) TSL holds an enforceable judgment of the Commercial Court in the sum of £108,600,000, together with post-award interest at 5.25% per annum simple on £96,450,000 from 29 June 2024, pursuant to the order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 under section 66 of the Arbitration Act 1996.
(b) KMH, as judgment debtor, has failed to make any voluntary payment toward satisfaction of the Award or the enforcement judgment, despite a formal pre-enforcement demand and the passage of a reasonable period for payment.
(c) KMH maintains accounts at Meridian Trust Bank Ltd., its primary London correspondent bank, which hold substantial sums believed to be in excess of £18,000,000.
(d) There is a real and immediate risk that KMH will seek to transfer or deplete the funds at Meridian Trust before TSL can execute against them. This risk is demonstrated by KMH's post-award pattern of asset-shifting, its incomplete compliance with the WFO asset disclosure order, its access to sophisticated international banking infrastructure, and its demonstrated willingness to move assets rapidly across jurisdictions.
(e) An interim third-party debt order is necessary and appropriate to protect the funds at Meridian Trust pending the determination of TSL's application for a final third-party debt order at a show-cause hearing.
82.  I respectfully request that the Court grant an interim third-party debt order under CPR Part 72 requiring Meridian Trust Bank Ltd. to freeze all sums standing to the credit of any accounts held in the name of Korinthian Maritime Holdings Ltd. at Meridian Trust's branch at 50 Lombard Street, London EC3V 9EA, up to the amount of the enforcement judgment (£108,600,000 plus post-award interest accruing thereon).
83.  I further respectfully request that a hearing to show cause (final order hearing) be listed as soon as practicable following service of the interim order on Meridian Trust and KMH, in order that the Court may consider whether a final third-party debt order should be made.
84.  TSL reserves the right to apply at the show-cause hearing for a final third-party debt order directing Meridian Trust to pay to TSL the sums standing to the credit of KMH's accounts in or towards satisfaction of the enforcement judgment.
Statement of Truth
I believe that the facts stated in this witness statement are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.
Signed: ________
HANNAH BRINKLEY
Date: ________
Position: Lead Associate, Calderwood & Harkness LLP 45 Moorgate, London EC2R 6AR
Stated on behalf of the Claimant/Applicant, Thalassa Shipping & Logistics SA
This witness statement is filed on behalf of the Claimant/Applicant, Thalassa Shipping & Logistics SA, by its solicitors, Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR (Ref: SE/LO/HB/PG/TSL-001). Telephone: +44 (0)20 7628 0000. Email: h.brinkley@calderwoodharkness.com.
Exhibit | Description
HB-1 | Sealed order of Mr. Justice Ashworth dated 2 August 2024 granting permission to enforce LCIA Award No. 224718 as a judgment of the Commercial Court under section 66 of the Arbitration Act 1996
HB-2 | Sealed Worldwide Freezing Order dated 16 July 2024, together with the sealed order made on the return date on 30 July 2024, continuing the WFO with modifications
HB-3 | LCIA Final Award No. 224718 dated 28 June 2024
HB-4 | Pre-enforcement demand letter from Calderwood & Harkness LLP to Harkness Whitford & Co. dated 8 July 2024
HB-5 | Relevant extracts from the Hartwell Pemberton LLP Preliminary Asset Tracing Report dated 15 August 2024, identifying KMH's accounts at Meridian Trust Bank Ltd. and evidence of asset dissipation
HB-6 | Extracts from documents produced in the LCIA arbitration showing charter hire payment instructions to Meridian Trust Bank Ltd. and related banking documentation
HB-7 | Evidence of post-award transfers and asset-shifting by KMH, sourced from Hartwell Pemberton's investigation and KMH's WFO asset disclosure

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

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FIRST WITNESS STATEMENT OF HANNAH BRINKLEY

FIRST WITNESS STATEMENT OF HANNAH BRINKLEY

HANNAH BRINKLEY

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