Lloyd's Law Reporter
DS-RENDITE-FONDS NR106 VLCC TITAN GLORY GMBH & CO TANKSCHIFF KG V TITAN MARITIME SA
[2013] EWHC 3492 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 13 November 2013
Contracts - Charter Restructuring Agreement - Interpretation - Rectification
The claimant shipowning companies had chartered vessels to
the defendant chartering companies. The ninth defendant was the owner of the
chartering companies. In early 2009 charterers stopped paying the full rate of
hire and the parties eventually agreed a charter restructuring agreement (CRA),
the interpretation of which was at issue in this litigation. The CRA provided
for how outstanding hire and hire going forward was to be paid, and notably
made provision for a "floor rate" of US$22,000 per day. Payment was to be the
floor rate or the market rate, whichever was the higher.