Below is the opinion from Rajah & Tann on the arrest of the vessel.

In summary:

1. We need to ascertain if the vessel was under a head timecharterparty as 
that would determine the proper party to an action (ie, owners or time 
charterers) and the proper vessel to arrest (ie. owner's vessel or time 
charterer's vessel).

I have instructed Rajah & Tann to do the necessary searches and 
investigations. Russell is also asking the broker for any information which 
may be helpful. 

I have also instructed Rajah & Tann to put the vessel and any other vessel 
ECTS may potentially arrest on shipwatch. The cost of shipwatch is SGD50 to 
SGD60 per month per vessel.

2. To arrest the vessel, a writ in rem, a warrant of arrest and a supporting 
affidavit of the the facts will have to be prepared.  The writ and warrant 
can be obtained within one working day (or over the weekend if necessary and 
if the duty registrar is contactable).

We would need to quantify the claim. John, Russell and Sheila  - please let 
me have an exact breakdown of the loss incurred.

3. There is practically no possibility of wrongful arrest in this case. Third 
party cargo pwners also would not have an action against ECTS as the 
arresting party.

4. Security can be posted by the vessel owners to secure the vessel's release.

5. Legal fees for arrest would be in the region of SGD10,000. Disbursements 
payable to the Sheriff of the High Court would be between SGD4000 to SGD 
SGD7000 (assuming release of the vessel with a week). Other search fees and 
shipwatch fees may amount to about SGD2000. 

Regards

Matt

 



---------------------- Forwarded by Matthias Lee/SIN/ECT on 10/07/99 11:38 AM 
---------------------------


kian.sing.toh@sg.rajahtann.com on 10/06/99 08:18:39 PM
To: Matthias Lee/SIN/ECT@ECT
cc: Matthias Lee/SIN/ECT@ECT 

Subject: pacific valour



Dear Matthias,

Attached please find opinion.  I have discussed with Steven Chong the issues 
of
third party claims and merits of Enron's claim.  He agrees with me.

I sent two copies of this advice to your office by fax, as requested.  Please
ignore the first copy as it contains some inadvertent typo errors.


(See attached file: Enron-1 (revision).doc)

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