Cosco Bulk Carrier Co Ltd v Armada Shipping SA and Anr (The "Spar Sirius") - Ch D (Briggs J) - 11 February 2011

(2011) 816 LMLN 3

Conflict of laws – Insolvency – UNCITRAL Model Law on Cross-Border Insolvency – Time charterparty – Shipowners exercising lien on sub-hire – Charterers filing for liquidation in Switzerland – Shipowners bringing London arbitration proceedings against sub-charterers to enforce lien – Sub-charterers bringing arbitration proceedings against charterers – Swiss office-holder obtaining Recognition order – Whether shipowners’ arbitration against sub-charterers should be stayed in favour of resolution by Swiss bankruptcy courts

On 3 September 2009 Cosco Bulk Carrier Co Ltd (“Cosco”), as disponent owners, chartered the vessel Spar Sirius to Armada Shipping SA (“Armada”) under a time charter on the NYPE form as amended (“the head charter”). On 4 December 2009 Armada sub-chartered the vessel to STX Pan Ocean Co Ltd (“STX”), also on the NYPE form (“the sub-charter”). Both the head charter and the sub-charter contained London arbitration clauses.