FOMALHAUT - Water ingress - LOF

Voyage from/to    Haldia and Visakapatnam to Chinese ports

Casualty type       Reported structural failure/water ingress

Casualty date        13th July 2008

Cargo                     45000 MT Iron Ore Fines

Reports have been received that the Singaporean flag vessel FOMALHAUT, 26862 GRT, 1999 built has suffered water ingress and as a result signed Lloyds Open Form with Smit Singapore on the 13th July. The vessel has been receiving salvage assistance and is in the Singapore Straits.

She has a cargo of 45,000MT of Iron Ore fines which we believe were shipped by Rungta Mines Ltd and are consigned at least in part to Topgains Minerals (Macau) and Penavico.

There are claims for salvage and General Average arising from this incident, as well as PA losses.

Salvage security will be required, our personal corporate salvage guarantees are accepted by Lloyds. We can provide salvage security on your behalf (subject to internal procedures) for a bail fee from 0.8% of the guarantee amount.

If you have insured cargo on board this vessel and require our assistance to deal with any security demands and claims for salvage and/or General Average, please contact us as soon as possible. We can also assist you in pursuing recovery for any losses that you may suffer. In this regard, we have identified the vessels’ P&I Club.