Interlegal recovered full debt for ship repair in favor of the shipyard

Over one year and a half ago, the Client – a ship repair company – applied to Interlegal for the recovery of debt for ship repair from the Debtor – a large shipping company.

The Client repeatedly requested the Debtor to pay debt voluntarily but its claims remained ignored.

Due to the Debtor’s evasion of its contractual obligations, the Client had to file a claim to the Maritime Arbitration Commission at the Ukrainian Chamber of Commerce and Industry on debt recovery. MAC at the UCCI allowed the Client’s claims in full.

At the stage of court proceedings on recognition and enforcement of arbitration award, the Debtor participated actively in court sessions and contested the Client’s claim at two instances but Interlegal proved their lawfulness and feasibility and both the first instance and appeal courts made a decision on recognition and enforcement of arbitration award in Ukraine.

In order to secure the Client’s claims, Interlegal initiated and arranged the Debtor’s ship arrest in Ukraine.

At the stage of execution proceedings, the Debtor rebutted  the enforcement of the award, by filing an appeal to the court against initiating execution proceedings, actions of bailiffs and ship arrest.

Interlegal lawyers defended successfully the Client’s position and execution proceedings resulted in forced sale of the vessel.

Having assessed the Client’s strong legal position and risk of vessel loss due to her sale, the Debtor managed to pay debt before the tender by cost remittance to the bailiffs office.

After several months of hard struggle, Interlegal defended the Client’s rights and charged full debt for ship repair.

Interlegal lawyer Mikhail Selivanov, senior lawyers Alexey Remeslo and Karyna Gorovaya, under general supervision of the Partner Natalya Myroshnychenko led the case.