Limitation funds: the end of cash?

Court of Appeal accepts that a limitation fund can be constituted by a letter of guarantee

In June 2013 the Admiralty Court in Kairos Shipping Ltd v Enka & Co LLC (The Atlantik Confidence) ([2013] 2 Lloyd’s Rep 535) dismissed owners’ application to set up a limitation fund by way of a letter of undertaking (“LOU”) provided by owners’ P&I Club (The Standard Club).