Tenacity Marine Inc v NOC Swiss LLC

Tenacity Marine Inc v NOC Swiss LLC

GP failed to prove financial or legal impossibility to comply with mandatory orders; it did not approach its lenders for support and provided unsatisfactory evidence regarding its assets and liabilities. Legal impossibility under UAE law was not established, and no criminal liability would arise for directors or...

Source-derived case information.

Parties
Claimant: Tenacity Marine Inc.; Defendant: NOC Swiss LLC
Jurisdiction
England and Wales
Judgment Date
22 December 2020
Procedural Posture
Application to Discharge Mandatory Orders / Judgment
Outcome
application dismissed
Legal Topics
Letters of Indemnity, Mandatory Orders, Financial Impossibility, Legal Impossibility, Secured Creditors, UAE Insolvency Law
Commercial Law Insolvency Law Maritime Law Letters of Indemnity Mandatory Orders Financial Impossibility Legal Impossibility Secured Creditors +1 more

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Parties

Tenacity Marine Inc.

Claimant

NOC Swiss LLC

Defendant

Procedural Posture

Application to Discharge Mandatory Orders / Judgment

Legal Issues

  1. 1 Whether GP has proved financial impossibility to comply with mandatory orders under letters of indemnity
  2. 2 Whether GP has proved legal impossibility under UAE law to comply with mandatory orders
  3. 3 Whether provision of security would constitute unlawful preference or expose directors to criminal liability under UAE law

Ratio Decidendi

GP failed to prove financial or legal impossibility to comply with mandatory orders; it did not approach its lenders for support and provided unsatisfactory evidence regarding its assets and liabilities. Legal impossibility under UAE law was not established, and no criminal liability would arise for directors or CRO. The application to discharge the orders is dismissed.

Court Disposition

application dismissed

Orders

  • Mandatory orders requiring GP to comply with letters of indemnity remain in force.