Case Nos: CL-2023-000206 and CL-2023-000207 - [2025] EWHC 1591 (Comm)

On 30 May 2014, the day after the Kailash Charterparty was entered into, Charterers entered into a general assignment (the ‘GOSBV-Kailash General Assignment’) with MT Kailash under which Charterers assigned their rights to any income from the operation of the Kailash to MT Kailash. The income was to be paid into a designated earnings account and applied first to payment of hire due under the Kailash Charterparty.

On the same day MT Kailash in turn entered into a general assignment (the ‘Kailash-DVB General Assignment’) with DVB, under which DVB acquired an assignment of MT Kailash’s rights under the GOSBV-Kailash General Assignment, and MT Kailash’s rights in the Kailash Charterparty and Kailash Guarantee. The recitals to the Kailash-DVB General Assignment record that the assignment was a condition precedent to MT Kailash being granted a credit facility of US$ 17 million under the Kailash Facility Agreement.

On 11 February 2015, general assignments similar to those described above were also entered into in respect of the Ben Nevis. The recitals to the OCSL-DVB General Assignment record that the assignment was a condition precedent to OCSL being granted a credit facility of US$ 29.7 million under the Ben Nevis Facility Agreement.