(1) Bank St Petersburg PJSC (2) Alexander Savelyev v (1) Vitaly Arkhangelsky (2) Julia Arkhangelskaya (3) Oslo Marine Group Ports
LLC
Day 20
March 2, 2016
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March 2, 2016 Day 20
1 Wednesday, 2 March 2016
2 (10.00 am)
3 MR STROILOV: May it please your Lordship.
4 MR JUSTICE HILDYARD: Yes, good morning.
5 MR STROILOV: May I call Mr Bromley-Martin.
6 MR JUSTICE HILDYARD: Yes.
7 MR STROILOV: Can the witness be sworn in, please.
8 MR ROBIN BROMLEY-MARTIN (Sworn)
9 MR JUSTICE HILDYARD: Mr Bromley-Martin, yes, do sit down.
10 Have some water. You have a screen in front of you and
11 the files will be produced to you as and when necessary.
12 A. Thank you.
13 Examination-in-chief by MR STROILOV
14 MR STROILOV: Can you please be shown {C1/3/1}.
15 Mr Bromley-Martin, does this look like your witness
16 statement, prepared for this trial, what you see on the
17 screen? You have to answer for the transcript.
18 A. Sorry, I can hardly hear you.
19 Q. What you see on the screen, does this look like the
20 first page of the witness statement prepared for
21 this trial?
22 A. Indeed, yes, sorry. Yes.
23 Q. And if it could be scrolled down to {C1/3/13}.
24 Mr Bromley-Martin, is this your signature on the last
25 page?
1 A. It did, indeed, yes.
2 Q. Would you agree that the acquisition cost paid for the
3 Western Terminal by the party trying to raise that sort
4 of project finance would be a key piece of information
5 for any potential lender?
6 A. Not necessarily.
7 Q. Why do you say that, Mr Bromley-Martin?
8 A. Because some people might value it on the basis of its
9 acreage, and some people may value it in their
10 calculations on the basis of its proximity to the sea
11 and its use as a port.
12 Q. But, Mr Bromley-Martin, if a party approaches a bank to
13 borrow money to develop an asset, wouldn’t, certainly,
14 a relevant piece of information for the bank be how much
15 did that person pay for the asset? Would you agree with
16 that?
17 A. No, not necessarily.
18 Q. So your evidence to his Lordship on oath — in this
19 case, then. Is it your evidence in this case that the
20 amount paid by the OMG company to acquire Western
21 Terminal was irrelevant information as far as the Bank’s
22 considerations would be concerned?
23 A. No, they would definitely take it into consideration,
24 but let me give you an example. If the property had
25 been bought 20 years earlier and still sat on the
1 3
1 A. It is, indeed.
2 Q. And would you like this witness statement to stand as
3 your evidence for the purposes of this trial?
4 A. I do, indeed.
5 Q. And is this statement true to the best of your knowledge
6 and belief?
7 A. To the best of my knowledge and belief it is true.
8 MR STROILOV: Thank you, Mr Bromley-Martin, my learned
9 friend Mr Lord will now ask you some questions.
10 Cross-examination by MR LORD
11 MR LORD: Mr Bromley-Martin, your evidence in these
12 proceedings mainly concerns your involvement with
13 a project concerning the Western Terminal on behalf of
14 OMG, doesn’t it?
15 A. It does, indeed.
16 Q. And that work carried out by you, or by your company,
17 Oxus, involved the preparation of something called
18 an information memorandum, didn’t it?
19 A. It did indeed, yes.
20 Q. And the purpose of the information memorandum was to
21 interest potential lenders, namely banks, wasn’t it?
22 A. Banks and infrastructure funds, yes.
23 Q. And to encourage them to consider lending US
24 $300 million in relation to this Western Terminal
25 project?
1 balance sheet at X pounds and 20 years later it was
2 worth 20X when they decided to develop it, the banks
3 would clearly take into account 20X rather than X.
4 Q. Yes, but there would be a world of difference, wouldn’t
5 there, Mr Bromley-Martin, between a project aiming to
6 raise US $300 million to develop an asset that, let’s
7 say, had cost $220 million a year earlier, compared with
8 a project to raise $300 million in finance on an asset
9 that had only cost US $40 million one year earlier;
10 wouldn’t you agree?
11 A. It would clearly — I think we are arguing about shades
12 of grey here, and therefore, clearly the greater
13 security you have in the form of the basic freehold, the
14 easier it is going to be to raise the money.
15 Q. Mr Bromley-Martin, in your long experience of project
16 finance, are you saying that a potential project
17 financier would not be extremely interested in
18 the amount paid by the borrower to acquire the asset
19 concerned? I mean, surely, doesn’t it —
20 A. It would merely be a factor in the equation.
21 Q. But it would be relevant, wouldn’t it?
22 A. It would be relevant, yes, but it wouldn’t be critical,
23 which is what I think you are trying to get me to say.
24 Q. Are you aware of the evidence that Dr Arkhangelsky has
25 given in these proceedings in relation to the matters
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1 I am asking you about now, Mr Bromley-Martin?
2 A. No.
3 MR JUSTICE HILDYARD: Mr Bromley-Martin, I am so sorry,
4 I don’t mean to cause you discomfort, but it does help
5 me if I can see you and you are hiding behind
6 a computer.
7 A. I beg your pardon, sir.
8 MR JUSTICE HILDYARD: Thank you very much.
9 MR LORD: Can I ask you, Mr Bromley-Martin, to look at the
10 information memorandum that I think you prepared.
11 A. Yes.
12 Q. And there should be a bundle in front of you —
13 A. I have my own copy here.
14 Q. I think it would be better, if you don’t mind, if we use
15 the court documents. There is a file of Western
16 Terminal documents that we have had prepared for ease of
17 reference. If you would be kind enough, please, to go
18 behind divider 10, you should find {D52/889/1} a copy of
19 the information memorandum dated July 2008?
20 A. Yes.
21 Q. Mr Bromley-Martin, I think that that is the version that
22 you refer to in paragraph 17 of your witness statement
23 at {C1/3/3}, if we could have that on screen so we all
24 know we are talking about the same document. You
25 exhibit {D52/889/1}, don’t you?
1 begins:
2 «Western was only acquired in 2007 …»?
3 A. Yes.
4 Q. «The Western Terminal was acquired for US $220 million.»
5 Can you see that?
6 A. Yes.
7 Q. Could you please go to {D52/889/15}. We can see
8 a heading «The project, its Development and Future
9 Plans». Can you see the second paragraph?
10 A. Yes.
11 Q. «The freehold was acquired by OMG in 2007 for
12 $220 million.»
13 A. Yes.
14 Q. Can you see that?
15 A. Yes.
16 Q. And then if you could go to {D52/889/37}, you can see
17 paragraph 8.5 of this information memorandum. Its
18 heading is «Capital structure and potential site value».
19 Can you see that?
20 A. Yes.
21 Q. So this paragraph, or this section, is telling
22 a potential bank about the potential value of the site,
23 isn’t it?
24 A. Yes.
25 Q. And it’s right, isn’t it, that the first piece of
5 7
1 A. Yes, that’s indeed it.
2 Q. Can you confirm to his Lordship that this is in fact the
3 version of the information memorandum that you are
4 talking about in your evidence?
5 A. Yes.
6 Q. And it is right, isn’t it, that this was the final
7 version that was sent out to a number of banks around
8 about July 2008?
9 A. Not entirely correct. There was a further version
10 in October 2008 which updated it and went to some
11 different banks.
12 Q. Yes, but if you listen to the question, I think your
13 evidence is that you went out to banks in July
14 and August and September 2008.
15 A. We did.
16 Q. So presumably the document at {D52/889/1} would have
17 been the version of the information memorandum that
18 would have been sent out to those banks?
19 A. Exactly, yes.
20 Q. Can we look, please, at what this information memorandum
21 says about the acquisition cost. Can we go to
22 {D52/889/9}, please. Can you see that,
23 Mr Bromley-Martin?
24 A. I’m on page 9, yes?
25 Q. Yes. Can you see halfway down the page a paragraph that
1 information that was provided under this heading was as
2 follows:
3 «OMG acquired Western in 2007 for the sum of
4 US $220 million.»
5 Can you see that?
6 A. Yes.
7 Q. Can I put it to you, Mr Bromley-Martin, that the fact
8 that OMG had allegedly acquired Western Terminal one
9 year earlier for $220 million was being put in this
10 section because it was thought to be relevant to
11 a bank’s assessment of the potential value of
12 the Western Terminal site?
13 A. Are you asking me a question?
14 Q. I am.
15 A. Yes, of course, because it gives an indication of
16 the market value of the freehold property in that part
17 of St Petersburg.
18 Q. Thank you. And it was being represented as having been
19 bought for US $220 million?
20 A. That was the information we received, yes.
21 Q. Did that information come from Dr Arkhangelsky?
22 A. I don’t believe it came from him personally, it came
23 from some of his staff.
24 Q. Are you aware of the actual acquisition cost for Western
25 Terminal?
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1 A. If it’s different to this, no, I’m not.
2 Q. So as far as you are concerned you think the acquisition
3 cost in 2007 was US $220 million?
4 A. It struck me as being rather a lot, I must admit, but
5 that was the information we received from our clients.
6 Q. If you could be shown, please, {D48/829/2}, you ought to
7 find, Mr Bromley-Martin, I think a set of questions and
8 answers. If you just turn the pages, if you would be
9 kind enough to turn the pages, you will see, I think,
10 your initials and the date of 13 June 2008 on page 3;
11 can you see that?
12 A. Mm hmm.
13 Q. And it is headed «OMG — Western Terminal. Questions for
14 Information Memorandum», and I think this document was
15 a series of questions which you, on behalf of Oxus, were
16 posing to your clients in order to elicit answers for
17 the purposes of, amongst other things, preparing the
18 information memorandum; would that be fair?
19 A. Exactly, yes.
20 Q. It’s a sort of Q & A document, really, isn’t it?
21 A. Yes.
22 Q. And if you would be kind enough to go to {D48/829/2},
23 please, you will see under the number 12 the following
24 question:
25 «How much did Western cost?»
1 handy. Mr Bromley-Martin you will see on screen
2 an extract from Dr Arkhangelsky’s witness statement
3 which he has given in support of the defendants’ claims
4 and counterclaims for this trial. Could you see the
5 heading at the foot of this page, «Western Terminal»;
6 can you see that, Mr Bromley-Martin?
7 A. Yes, I can. Yes, I’ve got it, yes.
8 Q. It says:
9 «At around the same time that the Group acquired
10 Vyborg Port, in May 2007, OMGP purchased the shares in
11 Western Terminal, which owned a 8.1 hectare site at the
12 port of St Petersburg (also known as Western Terminal).
13 Western Terminal was also acquired partly with the aid
14 of loans from Vozrozhdenie Bank that were secured on
15 Vyborg Port. The purchase price for Western Terminal
16 was just over RUB 1 billion, which I considered to be
17 very low considering its location and commercial
18 potential.»
19 Can you see that, Mr Bromley-Martin?
20 A. I can, indeed.
21 Q. Now, the exchange rate for Russian roubles to US dollars
22 back in 2007 was approximately 24 or 25; in other words,
23 roughly 24 or 25 Russian roubles to the dollar; does
24 that sound about right to you?
25 A. It does, indeed.
9 11
1 And it says: 1 Q. So you can see that Dr Arkhangelsky has given evidence
2 «Western Terminal was purchased for $220 million.» 2 that the Western Terminal was acquired in May 2007 for
3 Can you see that? 3 approximately US $40 million; can you see that?
4 A. Yes. 4 A. That would mathematically stand up, yes.
5 Q. And if you want to just read on, because I have some 5 Q. And you can see that that is the right conversion rate,
6 questions later on about the way in which this was 6 more or less?
7 financed, so if you wouldn’t mind just familiarising 7 A. Yes.
8 yourself with what was said there in answer to your 8 Q. Can you be shown, please, {D20/407/1}, which is
9 question, that would assist. 9 a translation of the purchase contract by which Western
10 So it appears, doesn’t it, as if you were told by 10 Terminal was acquired. Can you see it is dated May 15,
11 OMG, somebody at OMG, at least, that Western Terminal 11 2007?
12 had been purchased for US $220 million? 12 A. Yes.
13 A. This was the source of that information that was fed 13 Q. And if you look down that page, Mr Bromley-Martin,
14 into the information memorandum, you are right, yes. 14 I will summarise and be corrected if I say anything
15 Q. I understand that, Mr Bromley-Martin. I understand 15 misleading, it is an agreement to buy shares in
16 that. 16 the company Western Terminal, that’s Zapadny Terminal,
17 Then I wonder if you could be shown 17 and the seller was Premina Limited, which was a Cypriot
18 Dr Arkhangelsky’s witness statement in this case. 18 company, and the buyer was OMG Ports, all right?
19 I just want to check, have you read Dr Arkhangelsky’s 19 A. Yes.
20 witness statement that he has given in these 20 Q. So OMG Ports was buying the share capital of Western
21 proceedings? 21 Terminal, that company. I think you can see
22 A. No. 22 100 per cent of the shares are going to be sold. You
23 Q. You haven’t been sent it? No, I understand. 23 can see what’s then sold. There’s reference to the land
24 Would you be kind enough, please, to be shown 24 plots which are being sold.
25 {C1/1/11}, so if you could keep the Western Terminal 25 If you would be kind enough, please, to go to
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1 the second page, {D20/407/2}, in paragraph 1.3 you can 1 paragraph 32 on {C1/3/6}. Can you see that you refer
2 see a clause which seems to prescribe the consideration 2 there to the:
3 for this share sale; can you see that, towards the foot 3 «… IFRS accounts of ‘Stevedoring company
4 of the page? 4 Scandinavia’ … for the year ended 31 December 2007»?
5 A. Yes. 5 A. Yes.
6 Q. Do you have that, Mr Bromley-Martin? 6 Q. And you exhibit them, {D15/363/1}; can you see that?
7 A. I’ve got 1 billion — 7 A. Yes.
8 Q. That’s it, yes? 8 Q. And you were using these accounts, weren’t you,
9 A. — 69,350,000; is that what you are referring to? 9 Mr Bromley-Martin, not just for civil engineering
10 Q. That’s exactly right, Mr Bromley-Martin. And you can 10 purposes but for financial analysis purposes, surely;
11 see that it looks as if from this purchase contract that 11 that’s what you are saying here, isn’t it, in
12 it was about 1 billion roubles which would accord with 12 paragraph 32?
13 Dr Arkhangelsky’s witness statement to which I have just 13 A. I believe these accounts only became available after
14 taken you. So it looks, doesn’t it, as if the purchase 14 I had prepared the IM.
15 contract stipulated $40 million, or its equivalent, by 15 Q. So at the beginning of that paragraph you said:
16 way of the acquisition cost for Western Terminal; would 16 «In order to produce the IM I needed underlying
17 you agree? 17 financial data …»
18 A. If this is in — I haven’t had — it’s the first time 18 And then you go on to say:
19 I’ve seen this document, but reading it through quickly, 19 «There were no ‘Generally Accepted Accounting
20 I would say the address is in Russian, it doesn’t mean 20 Practice» or … (‘IFRS’) equivalent accounts for us to
21 anything to me, but if you are telling me that this is 21 work from at the time. The most useful figures
22 a valid purchase agreement for that particular plot of 22 eventually became incorporated into the IFRS
23 land, because I don’t recognise any of the references to 23 accounts…»
24 it, except the CB-15 and CB-16, except they were SV-15 24 And that is a reference to {D15/363/1}. So is it
25 and SV-16 rather than CB, so there are one or two 25 your evidence that you had some of the underlying
13 15
1 inconsistencies here with what my understanding is.
2 Q. Right. Are you saying that as part of your checking of
3 the information that would underlay the information
4 memorandum, you never asked or saw the relevant purchase
5 contract?
6 A. We asked for it and it wasn’t forthcoming. I mean,
7 I think it’s fair to say we were struggling to get
8 up-to-date information. OMG was growing so fast and had
9 so many things going, it was very difficult indeed to
10 get meaningful information, hence why I put those
11 questions down so that we actually had definitive
12 responses in writing from the client.
13 Q. Mr Bromley-Martin, assuming that that is an authentic
14 document — and no one has suggested otherwise until you
15 raised some queries just now — it looks, doesn’t it, as
16 if the purchase price or the acquisition cost was just
17 over 1 billion Russian roubles?
18 A. On the basis of what you have shown me now, that would
19 appear to be the case.
20 Q. And I think that you did look at the combined financial
21 statements, didn’t you, for the OMG group as part of
22 your work preparing the information memorandum?
23 A. As a civil engineer, not as an accountant.
24 Q. I see. But I think you refer to them in your witness
25 statement. If you just give me a moment. Yes,
1 information but not the actual finalised accounts,
2 because the information memorandum was drawn up before
3 the latter were ready; is that your evidence?
4 A. From memory — I would need to go back and look at
5 e-mails and things, but from memory, the IFRS accounts
6 appeared September time. So we were well into the
7 discussions with the banks when they appeared.
8 Q. And did you check through those accounts once they were
9 available to make sure that what you had put in
10 the information memorandum based on other financial data
11 was actually accurate in the light of these IFRS
12 accounts?
13 A. Yes, to the extent that, as a civil engineer, I am able
14 to understand some of the complexities of IFRS accounts.
15 Q. And did you —
16 A. And my colleagues who are more financially literate than
17 I am also checked through them.
18 Q. I see. Did you make any changes to the October version
19 of the information memorandum which postdated your
20 receipt of the accounts I am about to take you to?
21 A. No, because I think by that time we had received
22 a valuation which stated that the property was worth
23 220 million.
24 Q. Yes.
25 A. And so we relied on that.
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1 Q. Just for his Lordship’s note, perhaps you should see 1 A. With the greatest respect, the accounts don’t show what
2 this, Mr Bromley-Martin, behind divider 11 in that 2 the purchase price of the property would be. They may
3 Western Terminal bundle of yours, you will find 3 have been revalued or anything else, so IFRS accounts
4 a version of the October 2008 information memorandum, 4 would not normally show you the purchase cost of
5 {D51/887/1}. Can you see that? 5 a property.
6 A. Which page are you on? 6 Q. Just take it in stages. I will ask the question again.
7 Q. It’s the front page, really, so you can orientate 7 Did you, or anybody on your behalf at Oxus check the
8 yourself? 8 financial information set out in the information
9 A. Yes, exactly. 9 memorandum by reference to these IFRS accounts which
10 Q. That looks like it’s an October version of this 10 were available to you, you think, round
11 document? 11 about September 2008; yes or no?
12 A. Yes. 12 A. Yes.
13 Q. And can you confirm to his Lordship that this document 13 Q. Did you check through the accounts?
14 was sent out, at least to some banks? 14 A. I did.
15 A. It was, indeed. 15 Q. And do you remember reading through them?
16 Q. Can you remember how many banks received this? 16 A. I did, indeed.
17 A. Oh, off the top of my head, five or six. 17 Q. With a view to seeing whether or not the information in
18 Q. This version I am now showing you? 18 the information memorandum was accurate?
19 A. Yes. 19 A. Yes, yes.
20 Q. Could you be kind enough, please, to go to {D51/887/9}. 20 Q. Could we go to {D15/363/1}, please. Can you see that,
21 You can see that this version of the IM seems to 21 Mr Bromley-Martin?
22 replicate the same acquisition cost information as 22 A. Yes.
23 the July one that I have taken you to previously; can 23 Q. I think these are the combined financial statements for
24 you see halfway down the page? 24 the OMG group for the year ended 31 December 2007 to
25 A. Yes. 25 which you are referring, aren’t you?
17 19
1 Q. Acquisition cost 220 million. Can you see that?
2 A. Yes.
3 Q. If you just give me a moment, I will get the other
4 references because I think they are all the same.
5 I think it’s probably page {D51/887/15}, yes. Can you
6 see that? It looks very similar, doesn’t it,
7 Mr Bromley-Martin, to the July version? Can you see at
8 the top:
9 «The freehold was acquired by OMG in 2007 for
10 $220 million …»?
11 A. Yes.
12 Q. And could we go to {D51/887/38} of this document,
13 please, can you see «Capital structure and potential
14 site value», paragraph 8.5?
15 A. Yes.
16 Q. Again, it says:
17 «OMG acquired Western in 2007 for the sum of
18 US $220 million.»
19 Can you see that?
20 A. Yes.
21 Q. So when you got these IFRS accounts round
22 about September 2008, did you or somebody on your behalf
23 not check through them to verify the financial
24 information that was being sent out to banks in this
25 information memorandum?
1 A. Yes.
2 Q. And if you would be kind enough, please, to go to
3 {D15/363/52}, you will see a section referable to a note
4 in the accounts, note 6.19; can you see that?
5 A. Yes.
6 Q. And can his Lordship take it, Mr Bromley-Martin, that
7 given that the information memorandum was designed to
8 raise project finance for Western Terminal, you would
9 have been particularly concerned to identify information
10 in these accounts that related to Western Terminal?
11 A. To the extent they applied to the Western Terminal, yes.
12 Q. Can you see what is set out on that page? «Acquisition
13 of business»; can you see that?
14 A. Yes.
15 Q. And it says:
16 «In 2007 Scandinavia Stevedoring Company LLC…»
17 That’s the company that became OMG Ports and we can,
18 I think, put OMGP in there:
19 «…has acquired shares of the following companies.»
20 Can you see there is a list of companies there?
21 A. Yes.
22 Q. And the second one is Western Terminal, isn’t it? «West
23 terminal», can you see?
24 A. That’s not the company — not mentioned on that sale
25 thing you showed me earlier on.
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1 Q. Can you go on down, please, to the —
2 A. Sorry, could we just cross-reference, because the name
3 here is not the one on the sale of contract that you
4 showed me five minutes ago.
5 Q. Sorry, Mr Bromley-Martin, are you querying the
6 Scandinavia Stevedoring Company or the West Terminal
7 entry?
8 A. The West Terminal. That wasn’t the name on the sale of
9 contract you just showed me five minutes ago.
10 Q. Well, that contract was in Russian and what you were
11 shown was a translation.
12 A. That name, I don’t believe — you only showed it to me
13 briefly, but I don’t believe that name was on the sale
14 contract for the shares.
15 Q. Are you saying that when you read these accounts, if you
16 go back, please, to {D15/363/9}, «Notes to combined
17 financial statements», you can see that the auditors
18 have set out some information about these accounts and
19 they are explaining which companies’ accounts are set
20 out here; can you see?
21 A. Sorry, which page? 9?
22 Q. Can you see that one of the companies is West Terminal;
23 can you see that?
24 A. Yes, but I’m asking a question: could we go back and
25 look at the sale contract?
1 Q. Mr Bromley-Martin, you seem to be trying to find ways of
2 marginalising entries in these combined accounts to West
3 or Western Terminal; why are you doing that?
4 A. Because you tried to connect Zapadny with West Terminal.
5 I was querying that because I didn’t recognise
6 West Terminal from this document on {D20/407/1}. That
7 was my point.
8 Q. If we go back, please, to the combined accounts, why
9 would you have been given these financial accounts
10 unless they were relevant to the project finance for the
11 company called West or Western Terminal?
12 A. Basically, clearly any potential funder would want to
13 understand the underlying performance of the parent
14 company, and to that extent it would be relevant to our
15 fundraising.
16 Q. So when you turned up page {D15/363/9} and you saw the
17 information about the financial statements and you saw
18 the reference to a subsidiary company of Scandinavia
19 Stevedoring Company, namely West Terminal LLC —
20 A. Mm hmm.
21 Q. — is it your evidence to his Lordship on oath today
22 that you didn’t appreciate that the entry, the reference
23 to West Terminal LLC was a reference to the Western
24 Terminal Company in relation to which you were raising
25 project finance; is that your evidence?
21 23
1 Q. We can, yes.
2 A. Because I don’t recall — I only saw that for two
3 minutes, but I don’t recall that the name on that
4 contract is the same as the names on this.
5 Q. If I just go back and get it for you. {D20/407/1} is the
6 English, and then if we have the Russian, because the
7 Russian is here as well, I think.
8 A. You see you have Premina Limited —
9 Q. Sorry, Mr Bromley-Martin, if you have {D20/407/29}, you
10 have the Russian version. Can you see at the top of
11 the page? Can we go to {D20/407/28}, perhaps? I think
12 it has perhaps got chopped off. Can we focus on the
13 top, please, because the translation in English is:
14 «Contract of purchase of a share in the nominal
15 capital of OOO Zapadny Terminal».
16 And I am told that the Russian says «West Terminal»,
17 that «Zapadny» is Russian for west. I’m sure
18 Mr Stroilov will correct me if I am wrong about that.
19 It sounds like I am right about that. So the Russian
20 version seems to have said this was a contract of
21 purchase of a share in the nominal capital of
22 West Terminal; can you see that? So nothing turns,
23 Mr Bromley-Martin, on the fact that it is «Western», not
24 «West», does it?
25 A. No, no, I don’t speak a word of Russian.
1 A. No, we did check it through and we went through,
2 clearly, a check internally that we had everything
3 squared, and it looks as though we may have missed
4 something, then.
5 Q. We are coming to that, but could you just agree that
6 when you read these accounts you would have known that
7 the reference to West Terminal was to the Western
8 Terminal in which you were drawing up the information
9 memorandum?
10 A. One would have made that supposition, yes.
11 Q. So it’s yes, is it?
12 Yes, and if you go, please, to {D15/363/10}, under D
13 you can see «West Terminal LLC». It gives the company
14 details, doesn’t it?
15 A. Mm hmm.
16 Q. So for a project financer like you, you wouldn’t have
17 been under any doubt, would you Mr Bromley-Martin, that
18 this was a reference to the Western Terminal LLC
19 company, would you?
20 A. That was, as I say, our supposition. We assumed that
21 was the case.
22 Q. And if you go, please, back to {D15/363/52}, which I was
23 asking you about, I think about five minutes ago, can
24 you see that there are some references to West Terminal
25 LLC?
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1 A. Indeed.
2 Q. And I put to you that if you had read this page you
3 would have appreciated that that was a reference to
4 the company that has been known in these proceedings as
5 Western Terminal; that’s right, isn’t it?
6 A. Mm hmm.
7 Q. Is that a yes?
8 A. I believe so.
9 Q. Thank you. You can see that there is reference to
10 OMG Ports — I explained to you that Scandinavia
11 Stevedoring Company became OMG Ports:
12 «… has acquired shares in the following
13 companies.»
14 And one of those is Western Terminal. You can see,
15 there is Western Terminal, Vyborg Port, and there are
16 some other companies that OMGP had bought.
17 You can see that in the first table are some values
18 set out under the line:
19 «The fair value of these companies at the date of
20 receipt of the control is …»
21 And can you see that on the left-hand side there
22 is a thousands of roubles column. Can you see
23 «Acquisition expenses», about fourth entry down?
24 A. Yes.
25 Q. And if you go along to «West Terminal», to that column,
1 doesn’t it, as if the true acquisition cost of
2 Western Terminal when it was first acquired was around
3 US $40 million?
4 A. On the evidence you have given me today, yes.
5 Q. And do you further agree that there is a serious
6 discrepancy between an acquisition cost of
7 US $40 million and an acquisition cost of $220 million
8 when that is represented in the information memorandum?
9 A. There’s a considerable difference, yes.
10 Q. And are you a bit surprised by that?
11 A. Well, yes, because I took the trouble of actually
12 putting the questions in writing and getting an answer,
13 as you have seen.
14 Q. I know, Mr Bromley-Martin. I am not suggesting for one
15 moment that you —
16 A. I mean, I suspect one possible explanation was lost in
17 translation, if I can coin the phrase.
18 Q. What do you mean by that?
19 A. Because we were given that one-page valuation which had
20 the 220, so whether when they were replying to that they
21 were referring to the valuation rather than
22 the acquisition cost.
23 Q. I’m going to take you to the explanation which
24 Dr Arkhangelsky has given for this discrepancy in these
25 proceedings. I wonder if you could have the transcript,
25 27
1 can you see there is a figure of 069,600, in other
2 words, 1.069 billion Russian roubles?
3 A. Mm hmm. I do.
4 Q. That figure, Mr Bromley-Martin, accords, doesn’t it,
5 with the evidence in Mr Arkhangelsky’s witness statement
6 I’ve shown you today, with the purchase contract I’ve
7 shown you today, doesn’t it?
8 A. It does, indeed.
9 Q. Do you think that you read this page when you were
10 checking through these accounts for the purposes of
11 the information memorandum or not?
12 A. I would certainly have read through them.
13 Q. And do you think that you saw that entry or not?
14 A. I think you are asking an impossible question because
15 certainly one checked it, but I think you have to
16 remember that this was seven and a half years ago and we
17 probably had two or three projects on the go at the
18 time, so …
19 Q. Right. Do you agree, Mr Bromley-Martin, that it looks
20 likely that the acquisition cost was $40 million and not
21 US $220 million?
22 A. From the evidence you’ve put in front of me today, yes.
23 I didn’t have that at the time.
24 Q. I’m not suggesting that you knew the cost was different,
25 but I’m just asking you first to agree that it looks,
1 please, for Day 11, and I wonder if you could please be
2 shown first {Day11/52:17}; do you have the hard copy
3 there?
4 A. I have it on the screen here.
5 Q. Yes. You can see on Day 11 of the proceedings
6 Dr Arkhangelsky was giving some evidence and being
7 cross-examined and he was being asked some questions
8 about the information memorandum that we have looked at
9 this morning. Can you see, at line 17 on page 52,
10 Mr Justice Hildyard asked this, or said this:
11 «I think the question which you are being pressed on
12 is why you have stated in the witness statement that it
13 cost 40 million, and in the information memorandum that
14 it cost 220 million.»
15 Can you see?
16 A. Yes, I can.
17 Q. So there was a line of questioning of Dr Arkhangelsky
18 when he gave evidence a couple of weeks ago about the
19 explanation for this seeming discrepancy between the
20 40 million acquisition cost in the documents I have
21 shown you and the 220 million figure that appears in
22 your information memorandum; do you see the context?
23 A. Yes, I can see the context, yes.
24 Q. If you would be kind enough, please, to go to page 57,
25 Dr Arkhangelsky gave some evidence, and I would like you
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1 just to read to yourself, please, not out loud. Could
2 you start at {Day11/57:3} and just to give you further
3 explanation, Dr Arkhangelsky had given some evidence
4 that there had been some further payments made for
5 various rights of about US $20 million, so
6 Dr Arkhangelsky had given evidence that the 40 million
7 should perhaps be raised to $60 million; do you follow
8 me so far? Then that still left a discrepancy of
9 US $160 million; do you follow, Mr Bromley-Martin?
10 A. Yes, yes, mathematically I am with you.
11 Q. So when you look at line 5 or 6, you can see that
12 Dr Arkhangelsky was being asked to explain what appeared
13 to be a deficit or shortfall still of US $160 million.
14 Would you be kind enough to read, please, from line 6 on
15 page 57 down to line 3 on page 58.
16 A. Down to line which one?
17 Q. If you could read to the bottom of the page and then if
18 we could have the next page, please. {Day11/57:6} to
19 {Day11/58:3}. Can we have both pages up, please. Can
20 we have 57 and 58 on screen?
21 So if you read down from, it’s about line 3 or 4 on
22 page 57, down to line 3 on page 58. It is important,
23 I think, for you to focus on the answer at line 24 on
24 page 57 down to line 3 on page 58.
25 A. Right.
1 on page 194, I am afraid, down to line 21 on page 197.
2 I am sorry, Mr Bromley-Martin, to be imposing like this,
3 but I hope it won’t take too long. If we could have
4 {Day13/194:9} and {Day13/195:1} on screen, that’s very
5 kind, and if we could have {Day13/196:1} and
6 {Day13/197:1} on the other screen, that would be very
7 helpful as well, thank you. Sorry, Mr Bromley-Martin,
8 would you mind just reading …
9 A. Sorry, which line on page 197?
10 Q. Down to line 21, please, Mr Bromley-Martin.
11 A. All right. (Pause).
12 Right.
13 Q. So you can see what Dr Arkhangelsky told this court, you
14 can see the payments that he described, and you can see
15 his evidence to the effect that none of these banks were
16 ever going to be told about those payments.
17 Now, he emphasised that no one else knew about it,
18 and therefore that you didn’t know about it. Now that
19 you do know about it, this evidence, do you want to
20 revise any of the evidence you have given about the
21 project finance and the viability of Western Terminal?
22 I’m going to ask you some questions about that, but
23 I just want to give you a chance now to absorb that
24 evidence and just see if there is anything you want to
25 revise or modify or say, in fairness to you?
29 31
1 Q. Have you read that?
2 A. I have, indeed.
3 Q. Then could you please be shown page 60 of the transcript
4 for that day {Day11/60:2} and I would like you to read
5 from line 2 down to line 4.
6 A. Correct.
7 Q. Now I would like you, please, to be shown page 65 of
8 the transcript, and I would like to have page 66 up on
9 screen, please, if we may at the same time {Day11/65:1},
10 and {Day11/66:1}, and I wonder, Mr Bromley-Martin, would
11 you be kind enough to read from line 21 on page 65 down
12 to line 5 on page 66. Obviously the «Q» is the question
13 and the «A» is Dr Arkhangelsky’s answers.
14 A. I have read that, yes.
15 Q. I wonder, please, if you could be shown the transcript
16 for {Day13/194:1}, because Dr Arkhangelsky gave some
17 evidence, because I asked him about what the banks were
18 told about various matters and whether the banks that
19 were being asked to lend money to finance
20 Western Terminal had been told about some of the matters
21 that he had given evidence of to which I have just taken
22 you. If you go, please, in Day 13 to page 194, you will
23 see what Dr Arkhangelsky said to his Lordship about
24 these questions. I wonder, could we have page 194, and
25 I am going to, I am afraid, want you to read from line 9
1 A. I think if you read all the paperwork which I understand
2 was shown to you that was on my system, you will see
3 that we were continually pressing for information, and
4 I think I even mentioned in my witness statement that
5 before we go into a due diligence phase, we literally go
6 through every account on the balance sheet to reconcile
7 that. I do that whether it is Russia, Africa, India or
8 whenever, and in emerging markets it is a nightmare, to
9 say the least.
10 If you look at some of the documentation, you will
11 see that I told Vitaly that the Russian valuation of
12 the property would not stand muster, and therefore —
13 Q. Why was that?
14 A. It wasn’t …
15 Q. It wasn’t reliable?
16 A. Well, 220 million for 8 hectares is top-dollar, let’s be
17 honest with you, so we had a feeling that something
18 wasn’t quite right.
19 Q. Yes.
20 A. But we had this in writing from the client, and …
21 Q. So would it be fair, from those last answers, what you
22 are really saying is you think that not very much
23 further down the line these sorts of issues and
24 discrepancies would come to light?
25 A. I think it would have enabled us to change some numbers,
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1 yes.
2 Q. And is that all? Would that be your only change? You
3 would just change some numbers and you would carry on
4 with the same —
5 A. If you are saying —
6 Q. Let me finish the question —
7 A. If you are saying to me: Mr Bromley-Martin, are you
8 happy to be party to what I see here is loosely
9 described as a bribe, of course I am not, and I don’t
10 think the Bribery Act was in operation at the time, but
11 it certainly is now.
12 So if you are asking me about what I would do in
13 2015, I would probably look a lot sharper at some of
14 the facts and figures before sending them out.
15 Q. Yes. I don’t want you to comment on whether this
16 evidence is true or not, or accurate or not, because
17 that will be for his Lordship to decide, but I want to
18 ask you some questions based on a number of assumptions.
19 Do you agree, Mr Bromley-Martin, that the payments that
20 Dr Arkhangelsky claims to have made to this Russian
21 official were seriously improper payments?
22 A. They don’t smell right, put it that way.
23 Q. And he claims to have made them in the sum of
24 US $160 million, doesn’t he?
25 A. That’s what I deduce from this transcript you have shown
1 Q. I want to suggest —
2 A. We would have certainly considered our position, yes.
3 Q. And what would have been the likely result of that
4 consideration, do you think?
5 A. Well —
6 MR JUSTICE HILDYARD: How can he tell that without having
7 had the advice?
8 Mr Bromley-Martin, my understanding of the evidence
9 that you are giving, but correct me if I am wrong,
10 because it is not what you said, the effect of
11 the evidence that you are giving is that this would have
12 raised a red flag such as you would have felt obliged to
13 seek legal advice?
14 A. Exactly.
15 MR LORD: And, Mr Bromley-Martin, would you not expect that
16 upon any due diligence process by a lender considering
17 the Western Terminal project finance, that lender would
18 identify this discrepancy? In other words, the
19 difference between 40 million on the face of
20 the purchase document and the 220 million in
21 the information memorandum?
22 A. It should have — if the due diligence had been done
23 effectively, certainly it would have come to light,
24 indeed.
25 Q. And it is likely, isn’t it, at that point that any
33 35
1 me today, yes.
2 Q. And he claims to have made them in order to secure
3 various goodwill from a relevant Russian ministry,
4 doesn’t he?
5 A. Well, if you watched that Panorama programme about
6 Mr Putin a few weeks back, it seems as though this was
7 common currency, as you might say.
8 Q. Now, Mr Bromley-Martin, if you had become aware of the
9 payments that Dr Arkhangelsky claims to have made, and
10 the nature of them, as he has explained, can I take it
11 that you would have ceased to have anything more to do
12 with him, or any associated company?
13 A. It would have certainly given us a reason to consider
14 our position, exactly, and I think —
15 Q. So might you have gone ahead —
16 A. Just to finish answering your question, clearly I would
17 have gone and talked to Clyde & Co as they were working
18 in parallel with us, and sought their advice and
19 agreement.
20 Q. Right. So if his Lordship finds that that evidence of
21 Dr Arkhangelsky is true, he can take it that you,
22 Mr Bromley-Martin, would have considered continuing to
23 work on the Western Terminal project finance?
24 A. No, you are putting words into my mouth, I didn’t say
25 that.
1 lender is going to want to know the explanation for that
2 discrepancy, aren’t they?
3 A. Indeed.
4 Q. And they are either going to be told, aren’t they —
5 well, they are likely to discover, aren’t they, that the
6 purchase price seemed to be $40 million, not 220?
7 A. On the basis of what you have shown me today, yes.
8 Q. And the options would be either the potential lender was
9 given the explanation that Dr Arkhangelsky has set out,
10 or they were given no or some other explanation; do you
11 agree?
12 A. Sorry, I didn’t quite understand the question.
13 Q. If the lender wants to know why there is this
14 discrepancy between the 40 and the 220, they are going
15 to ask for an explanation, aren’t they? They are going
16 to say: Mr Bromley-Martin, or Mr OMG, what’s going on
17 here, aren’t they?
18 A. Exactly.
19 Q. And it appears —
20 A. If I could interrupt you there, I would sincerely hope
21 it didn’t get to that point in the sense that, clearly,
22 before we would allow any of the banks to come and do
23 any DD, we would have gone through with the IFRS
24 accounts and checked every single account on the balance
25 sheet, which is what we always do, because we have
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1 learned through our 30 years in project finance that
2 unless you have checked every last line in a balance
3 sheet, there are always discrepancies which come out in
4 the due diligence, and it is better to discover them
5 up front.
6 Q. Are you saying that it would have been acceptable for
7 a bank to lend money in relation to Western Terminal,
8 not knowing about these payments; are you saying that
9 would have been all right; that these payments could
10 have been made in relation to the potential development
11 of the project —
12 A. I have not suggested for a second that they are all
13 right.
14 Q. I am not suggesting you are, but you appear to be
15 suggesting that you could adjust the information
16 memorandum to —
17 A. I didn’t say that. You are putting words into my mouth.
18 Q. It is likely, isn’t it, Mr Bromley-Martin —
19 A. Let’s just go through the process. Once we got a bank
20 interested, okay, and we were probably negotiating
21 a term sheet, an exclusivity agreement, okay, that would
22 give us time to go through and prepare everything for
23 due diligence; yes? In that phase before the Bank
24 arrived with its cohorts of lawyers and accounts, we
25 would have gone through the balance sheet line by line
1 muster, the one Dr Arkhangelsky has given?
2 A. It would have been difficult to justify it, certainly,
3 very difficult.
4 Q. Because I suggest to you that any lender who was
5 potentially interested would have wanted to know why
6 there was that discrepancy; you agree with that, don’t
7 you?
8 A. Yes, but I can’t see where you are taking this, because
9 at the end of the day, the project would stand on its
10 future potential rather than a number which may or may
11 not have been paid for the real estate.
12 Q. No, but Mr Bromley-Martin —
13 A. As I said right at the beginning, we are arguing about
14 a shade of grey. It helps the equation to have a higher
15 valuation of the property, but it is not crucial or
16 critical to raising project finance.
17 Q. No, but it is going to be highly relevant, isn’t it, to
18 a reputable lender that payments of this type and this
19 magnitude seem to have been paid in order to develop or
20 to assist with the development of the said asset; that’s
21 going to be relevant, isn’t it?
22 A. Yes, but hindsight is an exact science.
23 Q. But if you are being asked to lend $300 million to
24 develop an asset, it would be highly relevant to your
25 consideration that these sorts of payments had been made
37 39
1 and hopefully discovered the discrepancy ourselves.
2 Then we would have had, clearly, a very interesting
3 conversation, which clearly would have included Clyde —
4 clearly — because they were in a similar position
5 because Clyde were reviewing the information memorandum
6 and approving it from a legal perspective.
7 Q. But by this stage the banks that you have approached,
8 that you have given evidence about potentially being
9 interested in financing, they’ve had the information
10 memorandum, haven’t they? They’ve had that?
11 A. Indeed, yes.
12 Q. So the Bank and its lawyers and its men would be sitting
13 down saying: right, 220 million, and then suddenly you
14 come along and say: actually, it is 40 million and the
15 difference is made up of these payments; is that what
16 you are positing, that you would have had that
17 conversation with, I don’t know, Goldman Sachs or
18 BNP Paribas, or one of the other banks you approached?
19 Is that the sort of conversation you imagine happening?
20 A. No.
21 Q. What sort of conversation, what sort of exchange —
22 A. There are two possible outcomes of our own due
23 diligence: one is to stop work and one is to continue
24 and find an explanation for it that would pass muster.
25 Q. And do you agree that that explanation would not pass
1 in these sorts of sums, wouldn’t it? You would want to
2 know, because you would want to know what it’s worth?
3 Can the man develop it? Will it work? Is it lawful?
4 They are bound to ask all those questions, aren’t they,
5 all these banks?
6 A. Without wishing to condone anything that you have told
7 me this morning so far, very few infrastructure projects
8 would be built in emerging markets if every time there
9 was a hint of bribery that the bankers went away. I am
10 afraid it is a fact of life of doing business in
11 emerging markets that these things do happen and you
12 trip over them and you have to work around it.
13 Q. Mr Bromley-Martin, this is rather more than a hint of
14 bribery? It’s a bit more serious than that, isn’t it?
15 A. You are telling me this in 2015; we weren’t given that
16 information in 2008.
17 Q. Can I suggest, Mr Bromley-Martin, that the fact of these
18 alleged payments, that that would have — that any
19 lender who discovered them would have been very
20 concerned about any project in relation to which these
21 payments had been made?
22 A. Yes. Definitely, if the facts had come to light at the
23 time, then there would have been a problem, yes.
24 Q. And by that you mean the lender would, in all
25 likelihood, not have gone ahead and lent, would it?
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1 A. Yes, I suppose, probably not.
2 MR JUSTICE HILDYARD: I’m so sorry, Mr Lord, I just want to
3 ask a couple of questions, if I may? Would you mind?
4 Suppose the discrepancy between the purchase price
5 and the total amount of 220 million had emerged at that
6 time, and it had been queried, but you had been told
7 upon enquiry that the discrepancy was explained by
8 a mixture of consultancy agreements, other innominate
9 costs associated with procuring the agreement of
10 the relevant authorities and so on and so forth. Doing
11 the best you can at that time, would that have lowered
12 the red flag or maintained it?
13 A. I think if it came out, I think Clyde and ourselves
14 would have probably withdrawn.
15 MR LORD: It is right, isn’t it, Mr Bromley-Martin, the fact
16 of these payments, if these payments became known by
17 anybody trying to value the Western Terminal asset, that
18 would tend to undermine the value of that asset; in
19 other words, the fact of these payments having gone into
20 effectively to the development, would tend to undermine
21 its value in the eyes of most valuers, do you agree?
22 A. Not necessarily, because I go back to it, as I presume
23 we may be discussing later, the Bank would be looking at
24 the cash flow from the project itself.
25 Q. I understand that, but if an asset that is up for
1 Q. Yes. And it is right, isn’t it, if, in fact, anybody
2 developing the Western Terminal along the lines that OMG
3 were suggesting when you were involved, that if in fact
4 that needed to be assisted by the payment of
5 US $160 million to a Russian official, that is going to
6 destroy the viability, the economic viability of all
7 your modelling of the project, isn’t it?
8 A. No. Not necessarily.
9 Q. Did you factor in to your modelling payments in order to
10 secure the development of the asset of these sort? Do
11 we see somewhere in the model that you factored in the
12 need to oil the wheels, as it were?
13 A. No, because we were uncomfortable with the valuation at
14 the time. If you look at my model, you will see that we
15 didn’t put anything in the balance sheet for the value
16 of the property.
17 Q. It’s right, isn’t it, Mr Bromley-Martin, that really in
18 the light of this information, which I suggest that any
19 lender would have discovered upon due diligence, there
20 was no real prospect of the Western Terminal project
21 finance being raised at that or any time?
22 A. On the basis of 160 million going somewhere it shouldn’t
23 have gone, probably not.
24 Q. I’m going to ask you now — I am moving onto a different
25 topic.
41 43
1 development seems to require these sorts of payments in 1 I am going to ask you now, Mr Bromley-Martin, about
2 these sorts of sums to be paid to advance the process, 2 other aspects of the Western Terminal project and the
3 doesn’t that inject an uncertainty and a potential 3 proposed financing. Can I ask you first, please, about
4 illegality into the whole development process of that 4 the physical condition of Western Terminal itself, the
5 asset? 5 actual physical condition of the land?
6 A. That wasn’t your question. 6 A. A lot of mud. There was some hard standing, but
7 Q. Well, could you answer the last question, and then 7 I think — I mean, it was physically being used, it was
8 I will try and frame my question — 8 physically generating revenue from round timber and
9 A. Your question was does the value of the freehold have 9 various other cargoes. The fact that 8 of the
10 much effect on the project. The answer is no, because 10 8 hectares out of the overall amount was already there,
11 it is the cash flow from the facilities on that freehold 11 it was relatively cheap to bring the port — the two
12 against which they are lending. 12 terminals, I beg your pardon, up to scratch.
13 Q. No, I see that, but if you are valuing an asset which is 13 Q. Yes, but you said «a lot of mud». It was in a very
14 said to be a developable asset and you become aware of 14 rundown condition, wasn’t it?
15 these sorts of payments that seem to be paid in order to 15 A. I can’t see the relevance of that to this, because if
16 assist that development, isn’t that going to inject 16 you have started a greenfield site, you haven’t even got
17 a very serious risk factor into any development of that 17 the mud there.
18 asset? 18 Q. Sorry, can you just listen to the questions. Did you go
19 A. Well, I think I’ve already answered that question once, 19 and visit the site?
20 if not twice. 20 A. Yes, several times.
21 Q. Is that a yes? 21 Q. Did you take any photographs?
22 A. Yes. It … 22 A. Yes, I did, indeed, yes.
23 Q. All right. And it’s right, isn’t it — 23 Q. Have they been disclosed? Do you still have them?
24 A. That’s why we go through the due diligence ourselves: to 24 A. I don’t have them any more, I don’t think. I did look
25 avoid precisely that sort of situation. 25 for them.
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1 Q. Did you give them to somebody else? 1 Q. Because I must say, I focused on the July version and
2 A. No, they were on an old laptop which I couldn’t fire up, 2 I was trying to find a section that described any sort
3 if you really want to know the question. 3 of development of the Western Terminal, and I couldn’t
4 Q. All right. 4 really find it.
5 A. But I know I took photographs at the time. 5 A. If you look at page 37, this is the October one, because
6 Q. All right. Did you make any notes of any site visits 6 I just have it in front of me. {D53/889/37}.
7 that you made in relation to the condition of 7 Q. Yes.
8 the premises? 8 A. You will see that work was — the concrete and hard
9 A. I don’t recall. What I do is I carry around a black 9 standing and everything which was going to be done
10 notebook everywhere, so perhaps if I went back to my 10 during 2008 —
11 2008 one, I would find it. 11 Q. Yes, but isn’t that future work, not past work?
12 Q. All right. 12 A. No, part of it was future, part of it was underway. The
13 A. But I did disclose, and I know you have them, four 13 concreting of the hard standing was underway.
14 photographs of a big metal tank being delivered to 14 Q. I see, and when do you think that had started, then?
15 Western Terminal. I know that was in the material 15 A. Mid-2008, from memory. I couldn’t give you a precise
16 I sent through. So if you look there, you will see the 16 date.
17 hard standing was in quite a good condition at that 17 Q. All right. But apart from the concreting works, there
18 point. 18 were no other significant improvement works that you
19 Q. When you say «a lot of mud», it sounds as if a lot of 19 understood to have been done to Western Terminal
20 the 8 hectares was not hard standing? 20 by October 2008?
21 A. No, I think roughly, from memory, about 60 per cent of 21 A. No.
22 it was hard standing. 22 MR JUSTICE HILDYARD: I’m so sorry, I am being half-witted;
23 Q. Right, and if you go to {D52/889/35}, you can see it 23 where was that reference?
24 says — this is the information memorandum: 24 MR LORD: It is at page 37 — are you in the October one,
25 «The Western Terminal was acquired in 2007, and was 25 Mr Bromley-Martin?
45 47
1 in a very run down condition.»
2 Can you see that?
3 A. Sorry, which —
4 Q. Top paragraph.
5 A. Yes, got you. Right.
6 Q. And presumably you thought there was a basis for that
7 comment?
8 A. Yes, which I stand by.
9 Q. Again, I stand to be corrected, but I can’t see in your
10 information memorandum reference to any improvement or
11 significant improvement works that had been done to
12 the terminal since it had been acquired in that
13 condition; do you agree that your information memorandum
14 doesn’t chronicle any improvement works?
15 A. I believe that it does chronicle some, actually.
16 Q. Does it?
17 A. Yes.
18 Q. It is probably my fault, I was trying to see where —
19 A. Definitely in the October version.
20 Q. Oh right.
21 A. Because they were doing work on it by that stage.
22 Q. Okay, so by October there was work being done?
23 A. Yes.
24 Q. And that work wasn’t being done in July, was it?
25 A. To be honest with you, I can’t remember when it started.
1 A. Yes, I am, {D52/889/37}.
2 Q. That is the July one.
3 A. I beg your pardon. I think they are probably the same,
4 I beg your pardon.
5 MR LORD: So {D52/889/37}, my Lord. Sorry, it is my fault.
6 MR JUSTICE HILDYARD: I beg your pardon, I was in
7 the October.
8 MR LORD: That’s where I think we all thought we were.
9 MR JUSTICE HILDYARD: I am sorry, I am being silly still.
10 MR LORD: {D52/889/37}, I think it is the concreting of hard
11 standing at the top.
12 MR JUSTICE HILDYARD: I see, I’m sorry.
13 MR LORD: I think Mr Bromley-Martin is suggesting that that
14 is works that had actually begun; is that right,
15 Mr Bromley-Martin?
16 A. My understanding and my recollection, and if you look at
17 the photographs of that steel tank being delivered, you
18 will see that there is good quality concrete there in
19 that area, which I think was part of SV-16, if
20 I remember rightly.
21 MR JUSTICE HILDYARD: It says «Summary of proposed capital
22 expenditure»?
23 MR LORD: Yes.
24 So Mr Bromley-Martin, this is the July information
25 memorandum and it does say, as his Lordship points out
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1 rightly «Summary of proposed capital expenditure». So
2 it does look from this document as if the concreting of
3 the hard standing is going to be part of the proposed
4 development once the finance has been raised, doesn’t
5 it?
6 A. You might surmise that, but that’s incorrect.
7 MR JUSTICE HILDYARD: In October, the page number is
8 {D51/887/38}.
9 A. I probably hadn’t changed it in the October version,
10 I am afraid.
11 MR LORD: And it is still the same in October, I think.
12 Mr Birt, what is the reference?
13 A. Yes, it’s word for word the same.
14 Q. {D51/887/38}. I asked you originally,
15 Mr Bromley-Martin, I think, whether your information
16 memorandum recorded any material improvement works that
17 had actually been carried out to Western Terminal since
18 it had been bought. I think the answer is, you agree,
19 that that document doesn’t record any, does it?
20 A. No, I think that’s an omission on my part.
21 Q. And from your answers, I think it is right, isn’t it,
22 that — it would be fair to say that no development work
23 that you had seen when you were at Western Terminal
24 would have materially increased its value from its
25 acquisition value. No works you saw could really add
1 offices, I should think, probably total footprint
2 3,000 square feet, at a guess. So they put some nice
3 brand new offices in there, they put a new gate in
4 there, so clearly things were beginning to happen.
5 Q. And that would have reduced the space for any containers
6 presumably, would it?
7 A. Marginally.
8 Q. Did you see any railway lines on the site?
9 A. Yes, they ran down the side of the property.
10 Q. And they weren’t connected to the sea, were they? They
11 didn’t run to the sea?
12 A. They ran within 50 metres of the sea.
13 Q. Could we go to some aerial photographs, do you think?
14 Could you go in your bundle behind divider 13.
15 {D196/2931/1}, please, there is an aerial photograph
16 taken by Google Earth of the Western Terminal site?
17 A. Yes.
18 Q. Do you recognise that, Mr Bromley-Martin?
19 A. I do, indeed.
20 Q. Can you help, where is the railway that you are talking
21 about?
22 A. Well, you can see it. You can see the trucks coming
23 down the road, sort of bottom centre to the left of that
24 blueish roofed building, and you can see the railway
25 tracks. They branch and form a U-loop down the side of
49 51
1 value to the site that you saw?
2 A. I disagree with that, because clearly they were
3 generating extra revenue for such things as this metal
4 tank that was delivered through Western Terminal.
5 So it was taking on new forms of cargo, and thus
6 generating additional revenue.
7 Q. Yes, but taking a step back, that wouldn’t really be
8 a very material — putting some hard standing down
9 wouldn’t really be a big change in the nature of
10 the asset, would it?
11 A. Well, if you think of it in terms of additional revenue
12 it is generating, yes.
13 Q. It’s right, isn’t it, that the terminal when you looked
14 at it was still not in a fit condition for containers?
15 A. No, it would not have been suitable for containers.
16 Q. And it was only suitable for bulk cargoes like timber?
17 A. Yes, because everything was — if I recall correctly,
18 everything was unloaded from a floating crane, so …
19 Q. Yes. Would it be fair to say that it was a fairly
20 scruffy site; would that be fair?
21 A. I’m not quite sure why you are running Western Terminal
22 down so much. I mean, I said there was a lot of mud.
23 Q. Yes.
24 A. Sorry, you have just reminded me of something else.
25 They had built new offices there. There were two storey
1 SV-16. There is some Russian writing along it, if you
2 see it, along the boundary, and you can see the new
3 offices there too.
4 Q. Could you hold up the hard copy so we can see what you
5 are pointing at. Sorry, Mr Bromley-Martin, it is my
6 fault. Sorry about that.
7 A. So here you have the railway here (indicates).
8 Q. Yes.
9 A. There is the offices here — excuse my dirty fingers.
10 Q. Yes.
11 A. And there is the boundary of Western Terminal, that
12 black line across there.
13 Q. But the railway line is outside the boundary, isn’t it,
14 of the OMG plot?
15 A. What’s that got to do with the price of butter? You
16 just stick it in through the boundary.
17 Q. Yes, but can you just confirm that the railway line you
18 are pointing to is actually outside the perimeter of
19 the Western Terminal plot, the 8-hectare plot?
20 A. By 10 or 15 metres, maximum.
21 Q. That’s right. And there was no railway tracks actually
22 within the curtilage of the Western Terminal plot itself
23 that you saw?
24 A. But it wouldn’t be rocket science just to lead a spur
25 into the terminal.
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1 Q. That wasn’t the question, Mr Bromley-Martin. 1 A. I wasn’t referring to the white lines, I was referring
2 A. The answer to your question is it wasn’t, but it would 2 to the extension of the white line with the Russian
3 be extremely easy to put it there. 3 writing on it looks like — my recollection is that the
4 MR LORD: Thank you. 4 railway track ran down the side of the property.
5 MR JUSTICE HILDYARD: Just for my understanding, and I do 5 But, I mean, I think, again, we are arguing about
6 apologise, where the Russian writing is, which is 6 shades of grey. To get the railway line onto the
7 Russian writing, but might be a train, as it were, 7 container terminal would have been very easy. The fact
8 that’s outside the boundary of the Western Terminal 8 that it is 30 metres rather than 5 metres is, to my
9 site, is it? 9 mind, rather irrelevant.
10 A. Yes. 10 Q. But do you agree that the loop that you described
11 MR LORD: My Lord, very roughly, that’s what I’ve understood 11 doesn’t look as if it is a railway; it looks as if it is
12 to be the Western Terminal site: that block there and 12 a road?
13 that block there (indicates). 13 A. My recollection is that there was a railway loop there,
14 A. Exactly. Plus the 3 hectares to be acquired to 14 down the side of the boundary, from my recollection.
15 the north west. 15 Q. Do you agree that looking at that photograph —
16 MR LORD: But the 8-hectare site is as I have drawn, those 16 A. Looking at that photograph what I thought was at that
17 two rectangles, really. 17 point was a railway line is probably a road, but I think
18 A. Yes, that’s a pretty good representation. 18 that there’s still — but round at the top, closer to
19 Q. Thank you, Mr Bromley-Martin. 19 the boundary fence at the top there, I think that that
20 A. No, but it would be very easy to put a railway line in, 20 loop — do you have a red mark on the picture?
21 very simple. 21 Q. Yes.
22 Q. I wasn’t suggesting it wasn’t, it is just there had been 22 A. Just immediately along the top of that red mark, from
23 a bit of debate about what was and wasn’t on the site, 23 memory that’s where the railway line was.
24 that’s all? 24 Q. Right.
25 A. I mean, it’s a one-month job. The proximity of that 25 A. But, as I say, the fact that the railway line is 30 or
53 55
1 railway line was a real bonus to the site. I think
2 that’s the critical issue.
3 MR LORD: My Lord, would that be a convenient time for
4 a short break?
5 MR JUSTICE HILDYARD: Certainly.
6 MR LORD: Thank you.
7 (11.18 am)
8 (A short break)
9 (11.29 am)
10 MR LORD: Mr Bromley-Martin, I would just like to go back to
11 the photographs and your evidence about the railway,
12 because there are some later photographs behind that
13 divider and I think they might be slightly clearer.
14 Could you go, please, to the next page, which is
15 {D196/2931/2}, because I think you pointed to that loop
16 and you suggested that that was a railway.
17 A. Yes.
18 Q. Can I suggest to you from this 2007 photograph that that
19 is actually a road, isn’t it? It is not a railway?
20 A. My recollection is that railway ran down the side there
21 by that Russian writing.
22 Q. If you could look at that photograph —
23 A. Yes, the top bit just to the right of the red, I think
24 that a railway track there, isn’t it?
25 Q. No, those white lines I think are the Google Earth.
1 40 metres away rather than 5 metres is pretty
2 irrelevant.
3 Q. Because if you go onto the photographs, if you think —
4 I’m not sure that’s right, Mr Bromley-Martin. If you
5 just turn the photographs over, and I accept that they
6 are a different quality, but it is hard to — is it that
7 dark line you are looking at there, above the red
8 square; is that what you are saying is the railway?
9 A. No, that looks like a fence, but there is a pale sort of
10 concave thing there. Do you see the big white building
11 that looks as though it is partially built further down.
12 MR JUSTICE HILDYARD: The semicircular?
13 A. Yes. Well, just to the left of that, that definitely is
14 the railway line there.
15 MR LORD: Because if you go to the — right. And who owns
16 the plot between that line and the Western Terminal; do
17 you know?
18 A. I have no idea, no.
19 Q. But that wasn’t part of the development project plot,
20 was it?
21 A. To bring the spur into the …
22 Q. No, sorry —
23 A. No, it wasn’t part of the Western Terminal, no.
24 Q. Because I think the extra 3 hectares is somewhere else,
25 isn’t it, on the site?
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1 A. Do you see where you have the time, 2002, 2015 sort of
2 scale on the top left-hand corner?
3 Q. Yes.
4 A. That rectangular going north westwards was the
5 3 hectares which was going to be reclaimed.
6 Q. Yes. So, if you like, where the white semicircular
7 building is, there is a plot of land, isn’t there,
8 between the railway you identify and the
9 Western Terminal boundary, isn’t there?
10 A. Yes. From memory, because that road stops there, hence
11 why you’ve the U, I am pretty sure that the railway line
12 goes very close to what would have been SV-17.
13 MR JUSTICE HILDYARD: Did the railway line sort of end —
14 A. Further right up the isthmus, if I can call it that,
15 sir.
16 MR JUSTICE HILDYARD: So it didn’t cross the road that we
17 can definitely see?
18 A. No, it didn’t cross the road, but because that red —
19 I don’t know if that’s a roof, that red thing, is it —
20 that road didn’t go any further, so from memory there is
21 a direct link between the railway line and SV-17.
22 MR JUSTICE HILDYARD: So the railway came in at the bottom,
23 as it were, looped round and then came to a juddering
24 halt, did it?
25 A. Yes, it goes right on up, it’s a very thin —
1 extremely easy to have put a rail link into the
2 container tunnel.
3 Q. And that would assume the reclamation of land, wouldn’t
4 it, and the building —
5 A. No, not necessarily.
6 Q. But when you were there, there was no railway line on
7 the Western Terminal plot itself?
8 A. No, there was no railway line at the Western Terminal.
9 That was part of the project, to do that.
10 Q. Could you look at {C1/3/4}, please. You see in
11 paragraph 24 you say:
12 «We had been instructed that various state
13 organisations would need to — and would — approve the
14 development plans at Western.»
15 Do you see that, paragraph 24 of your witness
16 statement?
17 A. Yes.
18 Q. And you identify some of the various approvals that
19 would be necessary.
20 A. Exactly, yes, that’s my understanding.
21 Q. And it’s right, isn’t it, that the Western Terminal
22 development project that you worked on, that it would be
23 necessary to obtain most of those permits to carry out
24 the development project?
25 A. My understanding, unfortunately all the rules were in
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1 MR JUSTICE HILDYARD: And then comes to a buffer? 1 Russian, so we couldn’t read them, but it’s our
2 A. It comes to a buffer about half a mile further north 2 understanding that that was the case, yes.
3 west from this picture here. So those trucks that are 3 Q. And you were instructed by Dr Arkhangelsky that he
4 parked on the left and the semicircular building, you 4 thought that the group would be able to get those
5 can just see the twin railway lines going up there. 5 permissions?
6 MR JUSTICE HILDYARD: Are they adjacent to the railway? 6 A. Yes, he seemed very confident of being able to do that.
7 A. Yes. 7 Q. Yes. But you didn’t carry out any independent
8 MR JUSTICE HILDYARD: But they are just a wee bit to 8 verification of that approval process?
9 the north of the railway, if you like? 9 A. No, it’s specifically excluded from our mandate.
10 A. Yes, north-east, exactly, sir. 10 The client had to secure those permits.
11 MR JUSTICE HILDYARD: Yes. (Pause). 11 Q. I understand. Can I ask you, please, about the
12 Thank you. 12 Western Terminal project and the projected turnover if
13 MR LORD: Shall I … 13 the development had gone ahead?
14 MR JUSTICE HILDYARD: Sorry, yes. 14 A. Yes.
15 MR LORD: No, I didn’t want to move on if that was 15 Q. Do you agree that the projected turnover of
16 inappropriate. 16 the Western Terminal, in other words, the revenue it
17 Mr Bromley-Martin, could you be shown — 17 generated, after it had been developed would be a key
18 A. Could I just clarify what I have just said? I’m sorry, 18 consideration when assessing the commercial viability of
19 this is my Google map. 19 the Western Terminal project?
20 Q. Right. Show his Lordship as well, that’s right. Yes. 20 A. Indeed.
21 A. If you look here (indicates), this bit here was going to 21 Q. And it’s right, isn’t it, that the project envisaged the
22 be SV-17. As you see, that road stops there, pretty 22 creation of a container terminal?
23 well, and the railway line comes very close to SV-17. 23 A. Indeed.
24 So the yellow line is the boundary of the extra 24 Q. And it’s right, isn’t it, that the Western Terminal
25 3 hectares, so it’s very close. It would have been 25 consisted, as all land does, of a finite space?
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1 A. Indeed. 1 MR LORD: I think I would like to ask the question. By all
2 Q. And any space at the Western Terminal port that was used 2 means give your paper out. It seems to me supplemental
3 for bulk cargo would have to be at the expense of 3 evidence, but anyway.
4 container revenue, wouldn’t it? 4 A. That’s why I brought a hard copy. (Handed).
5 A. I think you are being over simplistic there. 5 MR JUSTICE HILDYARD: It is better than him explaining
6 Q. It wouldn’t be the first time. 6 something rather inaccurately, in all deference to him,
7 A. Sorry? 7 where he has this prepared here.
8 Q. Yes, you might be right, you might be right. But I had 8 By all means ask your question first, if that’s what
9 really assumed, because I think your evidence is that 9 you would like to do, and if you would like time to look
10 you wanted to exclude the bulk cargoes because you 10 at this, Mr Lord, of course you can have it.
11 wanted to focus on the container model, and I think 11 MR LORD: I am not going to be able to follow this. I will
12 I had understood you to be saying you can’t really have 12 have to look at this over the short adjournment.
13 double-counting. You can’t be bringing in bulk cargo 13 Can we go to your witness statement,
14 turnover if, really, you are using space that you have 14 Mr Bromley-Martin, because I must say, I had understood
15 plugged into your container turnover analysis; do you 15 that you agreed with my propositions. I hadn’t
16 see the point? 16 understood that you would be resistant to the
17 A. Right. I think you need to understand the dynamics of 17 suggestion, but if you go to your witness statement at
18 a container terminal in as much as winning business from 18 {C1/3/7} —
19 shipping companies, and that is it clearly takes time to 19 MR STROILOV: I’m sorry to interrupt, I think the videolink
20 build up your business as containers, and therefore the 20 has gone dead, so I hope someone will investigate what’s
21 lively discussion that Vitaly and I had on more than one 21 happening and whether it is possible to restore it. I’m
22 occasion was quite how one ran down the round timber 22 sorry to interrupt, but obviously the idea was that
23 business and built up the container business, because, 23 Mr Arkhangelsky does participate by videolink. So
24 as you will see in the IM, the Russian Government were 24 I hope someone will look into it and see if it can be…
25 putting all sorts of export tariffs on round timber in 25 MR JUSTICE HILDYARD: It has been rather sporadic this
61
1 an effort to decrease the amount of round timber exports
2 going out of Russia without any added value. So —
3 Q. But in answer to my question, it’s right, isn’t it — it
4 must be right that if you are modelling the turnover of
5 a port business, you are going to be — you are working
6 with a finite plot of land, aren’t you, at the end of
7 the day?
8 A. That’s not unusual.
9 Q. No, but part of this analysis, part of the turnover
10 analysis, involves working out if, in effect, how many
11 containers are likely to throughput the port in a year,
12 and working out a sensible handling charge per
13 container, isn’t that a —
14 A. Your Lordship, if I may, I had prepared myself for this
15 question and I have a few sheets of paper which I think
16 might be easy to hand out —
17 Q. Well, I’m not sure that’s really…
18 A. — so I can answer the question.
19 MR JUSTICE HILDYARD: Have you copies?
20 A. I have got four copies here, yes.
21 MR JUSTICE HILDYARD: Are you objecting to that?
22 MR LORD: I don’t mind getting the copies but I think I
23 should be —
24 A. It’s very simple, it’s just tabular form just to explain
25 the calculation, that’s it.
63
1 morning, I have noticed it. I haven’t commented on it,
2 because everyone can see the same as I can see. It does
3 seem as if the internet connection with Nice is by no
4 means entirely reliable.
5 MR LORD: Someone has gone to check, my Lord. Certainly,
6 Mr Stroilov, we will check and see what’s going on and
7 what can be done.
8 MR JUSTICE HILDYARD: Can I take it that the LiveNote feed
9 is still operational? So he doesn’t know what’s going
10 on? (Pause).
11 There we are. Welcome back, Dr Arkhangelsky.
12 MR STROILOV: I do apologise for interrupting.
13 MR JUSTICE HILDYARD: Thank you.
14 MR ARKHANGELSKY: Thank you. Thank you. Sorry.
15 MR LORD: Mr Bromley-Martin, could you look at paragraph 37,
16 please, of your witness statement {C1/3/7}, and you say
17 this:
18 «Ultimately Vitaly —»
19 If you go back to 36. 36 and 37. 36:
20 «We had quite a lot of discussion with Vitaly about
21 the inclusion of timber in the IM. We saw timber
22 transhipment as a transient business line and one that
23 could not be relied on in the medium to long term …
24 also, from our own experience of port operations, we
25 were concerned that a container terminal, which was not
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1 dedicated as such, would find it difficult to compete
2 with the other container-dedicated terminals in
3 St Petersburg.
4 «However, at the time Vitaly had acquired
5 Western Terminal … the terminal was in a poor state.
6 It had cost him very little and relative to its
7 acquisition price I recall it was generating quite a lot
8 of turnover from timber. I understood that is why
9 Vitaly wanted to keep timber transhipment going
10 alongside the new container business.
11 «37. Ultimately Vitaly instructed us to include
12 timber and bulk cargoes in the model for the final IM.
13 I think it is unlikely that there would have been
14 sufficient space on the approximately 8 hectares that
15 Western Terminal … owned at the terminal to perform
16 bulk cargoes at the volumes Vitaly was projecting
17 (400,000 tonnes per year by 2011), together with timber
18 transhipment and a container business, but Vitaly
19 maintained it was possible — he would have had to
20 explain his reasons to funders.»
21 Can you see that?
22 A. Mm hmm.
23 Q. You go on to say:
24 «However, given the size of the plot, number and
25 length of berths, planned construction and investment in
1 an 18 July model, and that led to the final IM, then
2 there was a later model in September; can you see that?
3 A. Yes.
4 Q. I’m going to take you to both those models in the course
5 of today, but it is right, isn’t it, for his Lordship to
6 note that in the later model you stripped out all bulk
7 cargoes from the turnover calculations?
8 A. Let us be absolutely clear with this, at my own volition
9 I amended the assumptions in my model, because the model
10 has something — we are talking about
11 a multi-dimensional calculation here, yes.
12 Q. Yes.
13 A. And therefore I merely changed the assumptions, which is
14 very easy to do in my model, to do the sensitivity
15 analysis as any normal person doing DD would have done
16 to check on that, indeed.
17 Q. But it looked as if, from your evidence, you say this:
18 «which removed all the bulk cargoes». So my
19 understanding was, from your September model you had
20 removed bulk cargoes from the turnover; is that fair?
21 A. Yes, but the terminal was still very valuable.
22 Q. That’s a different point, Mr Bromley-Martin, I don’t ask
23 you to argue a cause here.
24 A. All right. I said yes already.
25 Q. I’m going to ask you now about — and that change was
65
1 kit, I was confident that after development a capacity
2 of TEU [that’s 20-foot equivalent units] 500,000 per
3 year for containers alone would have been achievable.
4 The 8 hectares was equivalent to an average of 4 days’
5 storage at 500,000 TEU per annum.»
6 So, Mr Bromley-Martin, I had understood that the
7 burden of your evidence was you had not really thought
8 it appropriate to include timber or bulk cargoes in
9 a modelling of a business that was designed to be
10 a container transhipment business; is that right or not?
11 Was I right?
12 A. Broadly — broadly right, yes.
13 Q. And Dr Arkhangelsky prevailed upon you to include the
14 timber, and you thought: well, let him justify it to
15 lenders at the due diligence time; would that be a fair
16 summary?
17 A. I think I was hoping that my persuasive powers might
18 prevail in the fullness of time.
19 Q. But you were disappointed in that hope, it looks,
20 certainly in the short term?
21 A. On the basis that things came to a grinding halt, as we
22 are aware, that opportunity never availed itself.
23 Q. And I think it’s right, if we look at paragraph 39 of
24 your witness statement, I think you explain that you did
25 two models for this Western Terminal project: there was
67
1 done in part at the suggestion or insistence of one of
2 the potential lenders, wasn’t it?
3 A. They asked me to look at what we believed the effect
4 would be.
5 Q. Because it is right, isn’t it, that if you kept some
6 space at the port for bulk cargoes, like timber, that
7 would be space that couldn’t be used for some
8 containers, at least while the timber was there?
9 A. Yes, but there is actually a middle ground in the sense
10 that there is a transitional phase. So it would have
11 been perfectly possible to continue unloading, or
12 loading, should I say, round timber at SV-15 whilst you
13 upgrade SV-16 and start an embryonic container business
14 there, because the capacity would be sufficient to last
15 you a year or so.
16 Q. That wasn’t the question, Mr Bromley-Martin. It wasn’t
17 really whether you could run those two income streams at
18 the same time: plainly you could. The point, really, is
19 this, isn’t it: when you are looking at modelling the
20 viability of a 8-hectare port plot, space that you use
21 for bulk cargo is necessarily — necessarily — going to
22 be at the expense of at least some container throughput;
23 yes or no?
24 A. No. Because if you do the calculation —
25 Q. Yes?
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1 A. — once you get up to capacity, near capacity, then you
2 would need the full amount of space.
3 If you look at the model you will see that it took
4 three or four years in our projections for the
5 throughput to come close to the capacity. So for at
6 least two years you could have continued exporting round
7 timber from SV-15 whilst you were (a) constructing and
8 (b) operating a container terminal from SV-16.
9 Q. So when should his Lordship take it — how many years
10 into your model would the port be operating in its
11 developed state at full container transhipment capacity?
12 How many years into the projected new business?
13 A. Five.
14 Q. It was going to take five years, was it, to get up to —
15 and five years to get up to 500,000 TEUs per annum?
16 A. Mm hmm. Look at Gdansk.
17 Q. I am not challenging, I just want to get your answer.
18 A. You can see it in reality, Gdansk terminal was built, it
19 came operational in 2007 and they are up to capacity now
20 after five or six years. So that is a fairly common
21 feature of container terminals.
22 Q. And what was the capacity you were predicting one year
23 into the project?
24 A. I will have to go back into the — there’s 500 variables
25 and you happen to be asking me about one, but I suspect
1 life, that it was better to dedicate the terminal to
2 container only?
3 A. Exactly. I mean, round timber tends to be quite dirty,
4 by common sense.
5 MR JUSTICE HILDYARD: Had he persisted in his then
6 preference, it could have taken longer to get optimum —
7 A. It could have taken longer, but he would have had the
8 money, yes.
9 MR LORD: Mr Bromley-Martin, I want to ask you now about the
10 container throughput which you modelled for the
11 Western Terminal project.
12 A. Mm hmm.
13 Q. I am sure his Lordship knows this, but the language is
14 of TEUs, isn’t it, which I think is 20-foot equivalent
15 units, isn’t it?
16 A. Exactly, yes.
17 Q. And that is meant to reflect the average size for
18 a container, isn’t it?
19 A. It’s the original American size that started it.
20 Q. So TEU is really shorthand for a container. So
21 500,000 TEUs per annum is really 500,000 containers per
22 annum?
23 A. Crudely speaking, yes.
24 Q. Thank you very much.
25 A. In your calculation, just to spilt hairs, if I may, for
69 71
1 it will probably be around — built into the model is
2 what we call an S curve and that S curve is very easily
3 changeable, and I suspect, off the top of my head, it
4 would be around 15 or 20 per cent, in that particular
5 scenario.
6 MR JUSTICE HILDYARD: This may be a silly question,
7 I apologise if it is, but is that five years predicated
8 on you convincing or others convincing Dr Arkhangelsky
9 eventually to have a dedicated container operation, or
10 would it be affected if Dr Arkhangelsky continued in his
11 preference for running the two together?
12 A. If I could liken it to retail revenue per square foot,
13 sort of attitude, it would have been far more profitable
14 to have run a container terminal than a round timber
15 export terminal, and on the basis of the projections
16 that we were seeing for container traffic growth through
17 St Petersburg in 2008, I suspect that he would have been
18 quickly convinced that containers were a more profitable
19 cargo than timber, notwithstanding the likelihood that
20 the Russian Government were going to increase export
21 tariffs, which would have killed the export business
22 anyway.
23 MR JUSTICE HILDYARD: So your figures were predicated on it
24 becoming obvious to Dr Arkhangelsky, whether through
25 your persuasion or through the simple facts of economic
1 two seconds, a 40-foot container is counted as 1.6 TEU.
2 Q. I see, so there would be a slight adjustment depending
3 on the size of the container?
4 A. A slight adjustment.
5 Q. I understand.
6 Now, in paragraphs 33 and 37 of your witness
7 statement, so {C1/3/6}, paragraph 33, you refer to these
8 TEUs, you explained what they were at the end of that
9 paragraph.
10 A. Yes.
11 Q. So you were looking at the 20-foot equivalent unit which
12 was:
13 «… a standard unit of cargo capacity based on the
14 volume of a 20-foot-long intermodal metal box
15 container.»
16 Is that right?
17 A. Yes.
18 Q. And if you go to paragraph 37 over the page, at
19 {C1/3/7}, you set out your evidence there about the
20 potential TEUs per annum turnover, and you are
21 suggesting, aren’t you, I think, that you were confident
22 that after development a capacity of 500,000 per year
23 for containers alone would have been achievable?
24 A. Exactly.
25 Q. And you are basing that on the 8-hectare space, aren’t
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1 you?
2 A. Exactly. If you look at that paper I just gave you,
3 which you didn’t like, on the bottom of the second page
4 I run you through my mathematical logic for saying that.
5 It’s about two-thirds of the way down the page entitled
6 «Terminal storage».
7 Q. Yes, perhaps if I could run at it my way and then I will
8 look at your extra evidence over the short adjournment.
9 Could you be shown {D43/750/4}, please. In that
10 bundle in front of you, Mr Bromley-Martin, you will find
11 an earlier version of the information memorandum. If
12 your Lordship has the Western Terminal bundle, it is
13 actually behind divider 1.
14 I think, Mr Bromley-Martin, this looks like it was
15 the first draft of this document.
16 A. Yes.
17 Q. And it contains some of the later material, but it also
18 contains some more general material relevant to
19 the development, and I deduce that this first draft was
20 based in large measure upon your general market
21 understanding; would that be fair?
22 A. Well, it takes a lot of — as you can imagine, the
23 amount of data in the public domain was very thin indeed
24 at that stage, because a lot of the data that —
25 throughput and everything else coming through, the
1 memorandum, you were predicating after development
2 a port facility that had three berths of those lengths;
3 is that right?
4 A. Mm hmm, yes.
5 Q. And you were positing a turnover of TEUs per annum of
6 300,000?
7 A. Yes.
8 Q. And if we go, please — if you have that in mind, now if
9 you could keep that page open, if that could be up on
10 screen, please. If we could go, please, to
11 the equivalent version in the final, by which I mean
12 the July 2008 version, at {D52/889/6}.
13 MR JUSTICE HILDYARD: Which tab?
14 MR LORD: It is behind divider 10.
15 Do you have that, Mr Bromley-Martin?
16 A. Yes.
17 Q. You can see that this is what I think you describe as
18 the final version. I know that there was an October
19 version but I am not sure that this changed. You can
20 see under the heading «OMG Western Terminal Limited», if
21 we could have it on screen, {D52/889/6}, second
22 paragraph:
23 «Western owns 8.1 hectares…»
24 Then you can see:
25 «The facility will be developed in three phases over
73 75
1 individual container terminals in St Petersburg was
2 clearly commercially sensitive and we couldn’t get hold
3 of it, and therefore we relied upon the local management
4 of Western, people who worked for other companies, and
5 from what was the scant amount of information in
6 the public domain.
7 Q. If you go, please, to {D43/750/4} you can see in
8 the bottom half of the page you set out in, I think,
9 summary terms, what the Western Terminal development
10 project is likely to comprise, don’t you?
11 A. Yes.
12 Q. And can you see the third paragraph from the foot of
13 the page:
14 «Upon completion of the development, Western will
15 have three berths, 170 metres, 210 metres, and
16 200 metres…»
17 Can you see that?
18 A. Yes.
19 Q. And so it runs on. Then you say later on in
20 the paragraph:
21 «The terminal will be capable of handling 300,000
22 TEUs per annum.»
23 Can you see that?
24 A. Mm hmm.
25 Q. So in your very first version of this information
1 30 months and comprise …»
2 You see what it there says.
3 Then if you go to {D52/889/7}, you can see you say
4 this:
5 «Upon completion of the development, Western will
6 have three berths, 170 metres, 210 metres, and
7 200 metres … capable of taking ships with up to
8 9-10 metres in draft which corresponds to roughly
9 7,000 tonnes dead weight.»
10 Can you see that?
11 A. Mm hmm.
12 Q. «The storage areas will be made over to hard standing,
13 served by a rail spur from the Russian … network.»
14 Those proportions, those dimensions for the
15 developed site are the same, aren’t they, in the July
16 version, as in the May version that I took you to
17 a moment ago?
18 A. Mm hmm.
19 Q. So the premise for the containers per annum output, or
20 throughput, in terms of the available space, hasn’t
21 changed, has it? It’s the same three berths with the
22 same dimensions, isn’t it?
23 A. Just because I corrected something, I’m not sure why you
24 are — what you are driving at.
25 Q. Well, your original assessment of the potential TEUs per
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1 annum was 300,000, wasn’t it?
2 A. Yes.
3 Q. And in the final version —
4 A. Well, in a draft form, yes.
5 Q. And in your final version, it was 500,000?
6 A. Yes, because we had done more research.
7 Q. I am wanting you to confirm to his Lordship that, if you
8 like, the premise in the sense of the physical capacity
9 of the land, of the port itself, hadn’t changed between
10 those two figures.
11 A. It had, in the sense that new — because container
12 traffic is a really embryonic business in Europe at that
13 stage, or relatively recent, and significant strides
14 have been working — in terms of methodology and
15 everything else. So if you talk to the experts, Drewry,
16 who are probably the leading consultants on container
17 traffic, work on the basis of 1,200 to 1,600 TEU per
18 metre of quay, which would take us well into the realms
19 of 500,000 with only two quays, 400 metres.
20 Other ones, like Scott Wilson, are talking about
21 1,600 to 2,500, because of improved technology and
22 methodology, so I feel entirely comfortable with being
23 able to upgrade the capacity to 500,000, and you will
24 see I’ve got references to that, to the bit of paper you
25 hate.
1 draft it was.
2 Q. Behind tab 2.
3 A. Behind tab 2.
4 MR JUSTICE HILDYARD: It does help, Mr Lord, if you give the
5 tab number. Occasionally, I think, you are assuming
6 a familiarity with this Western Terminal bundle, at
7 least in my case, which I do not have.
8 MR LORD: Sorry.
9 If you go behind divider 2. If you have divider 1
10 open, this bundle has the various iterations of
11 the information memorandum. Behind divider 1 is what we
12 think is the first draft, which I have taken you to. If
13 you turn to the second page you will see the front
14 sheet. Behind divider 1, that.
15 MR STROILOV: I’m terribly sorry to interrupt again on
16 a technical point. I was never given a hard copy of
17 the Western Terminal bundle, so if someone could do that
18 so I can follow.
19 MR JUSTICE HILDYARD: Ah yes, you are quite right. This was
20 handed over in Paris.
21 MR LORD: Sorry Mr Stroilov. Sorry.
22 MR STROILOV: I’m grateful.
23 MR LORD: That’s all right. I apologise.
24 Mr Bromley-Martin, do you see that there are
25 different drafts of this information memorandum. We
77 79
1 Q. No, Mr Bromley-Martin, I rather suggest that you are 1 have tried to set them out in sequence; all right?
2 defensive about — the reason you prepared this table is 2 A. Yes.
3 because you know that it is not possible to justify half 3 Q. And behind divider 1 at {D43/750/1} seems to be the
4 a million TEUs per annum and that is why you have taken 4 first draft. Can you see it says May 2008; do you have
5 so much trouble to try to rework some analysis, that’s 5 that? Oxus?
6 what I suggest has happened here? 6 A. Yes, just give me two seconds.
7 A. That’s absolute nonsense. 7 Q. Do you have just the very front page? It looks like
8 Q. All right, well let’s go through the way you approached 8 this (indicates). This will help you.
9 it in your drafts, if we may, and we will ask about 9 A. I am comparing the two versions, draft 1 and draft 2.
10 Mr Sutcliffe’s views and a number of other things, all 10 Q. I was going to ask you to do that. If you just look at
11 right. 11 that page.
12 If we go to {D43/751/6}, Mr Bromley-Martin, we will 12 A. Well, it’s clearly a typo. There’s no other explanation
13 see a second version, draft 2 of the information 13 for it, because, I mean, 7,000 TEU per annum is clearly
14 memorandum. If you look at the top two paragraphs, 14 completely wrong, so that is clearly a typo and, with
15 please. Could you focus on the figure of 7,000 15 the greatest respect, irrelevant to the discussion
16 containers, TEUs per annum; can you see that? 16 today, I would submit.
17 A. Which document is this? 17 Q. Can we just follow the questions, if you don’t mind.
18 Q. It is one of your drafts, Mr Bromley-Martin. 18 Can you orientate yourself so you have the first draft?
19 A. It has no provenance given on this screen. So what 19 A. Yes, I have it under my left hand.
20 am I looking at? D/43. 20 Q. And if you have the second. Behind divider 2, if you go
21 Q. {D43/751/1}. If you have a hard copy in front of you, 21 to the equivalent frontispiece for that document, you
22 behind divider 2, it will be easier in the hard copy, if 22 can see that it looks very similar, except it had a bit
23 someone can help you, we go behind divider 2 and we can 23 more text inserted on the front page, including in
24 be a bit more efficient — 24 square brackets — well, it has US $100 million, hasn’t
25 A. You suddenly give me a page and expect me to know which 25 it? If you compare those two pages. Can you see?
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1 A. Mm hmm.
2 Q. So it looks like some more information has been added to
3 the document behind divider 2, {D43/751/1}. And that
4 was why I took you to {D43/751/6} to ask about the
5 figure of 7,000 containers per annum, and I was going to
6 ask you what your explanation was for that figure
7 appearing in what seems to be the second draft of this
8 IM?
9 A. Can I repeat what I just said? It’s clearly a typo.
10 A typographical error. 7,000 TEU is something you would
11 expect to do in two weeks.
12 Q. Okay, if you go to the third draft, please. Go behind
13 divider 4, please, and if you go to, again, the front
14 page, {D44/753/1}, if you go to {D44/753/6}. So it’s
15 the sixth page, the same page; can you see the first two
16 paragraphs, and can you see that the TEU per annum
17 figure has now gone up to 35,000 per annum; can you see?
18 A. Again, that has to be a typo —
19 Q. Another typo?
20 A. — because that’s what you would expect to do in
21 a month.
22 Q. I see, you have gone from 300,000, and then you are
23 saying the 7,000 is a typo and the 35,000 is a typo?
24 A. Clearly.
25 MR JUSTICE HILDYARD: I’m so sorry, I can’t find it. 753?
1 A. Clearly.
2 Q. So you would have taken out — you would have deleted
3 whatever it is, a 3 and two noughts, and you would have
4 put a 7 in; is that right?
5 A. Clearly.
6 Q. And you are saying — how would that be a typo? Do you
7 mean you meant to press another key? I am not quite
8 following that. Why would that be a typographical
9 error?
10 A. I’m not quite sure where this question is going. I’ve
11 just said, the only explanation for it is that it was
12 a typographical error on my part which was later
13 corrected.
14 7,000 TEU you can do in two weeks, so clearly
15 I wouldn’t bother to put that in if it was two weeks’
16 worth of business into an IM.
17 Q. Mr Bromley-Martin, we are going to come to your
18 expertise or otherwise in this regard quite soon, so
19 I am going to suggest to you that you weren’t really
20 expert in this sort —
21 A. At typing, probably not.
22 Q. And you weren’t really expert in questions of
23 the realistic turnover of containers per annum and that
24 is why we see this figure bobbing around in these ways
25 in your drafts?
81 83
1 MR LORD: 753/6, my Lord, sorry. It’s the equivalent page
2 and it is the second paragraph.
3 MR JUSTICE HILDYARD: Yes, I’ve got you.
4 MR LORD: I was just asking the witness if he wouldn’t mind
5 just explaining why the TEU per annum figure is changing
6 in this way.
7 So when you say a typo, do you mean somebody wrote
8 down, what, 35,000 just by mistake, or missed a digit
9 out, or what?
10 A. Probably, because I was typing it.
11 Q. And is that your honest answer —
12 A. Yes, it’s the only explanation I can give you. These
13 were internal documents which actually Dr Vitaly and the
14 rest of the OMG team never saw, so it was an internal
15 document to Oxus and Neutralis, so it never saw the
16 light of day.
17 Q. So his Lordship can take it that you typed out this
18 change that we have seen?
19 A. Mm hmm.
20 Q. Yes?
21 A. Mm hmm.
22 Q. And that therefore you must have gone to this paragraph
23 and you must have looked at the 300,000, and you must
24 have made a change and changed it in one draft to 7,000;
25 is that right?
1 A. No, I totally and utterly reject that.
2 MR JUSTICE HILDYARD: Could it be a false reference to annum
3 rather than month?
4 A. It could easily be so, maybe that’s one explanation, but
5 I mean, this is something that I was doing eight years
6 ago and there was clearly internal discussion we were
7 going on, and why I changed it backward and forwards or
8 didn’t put annum or typed in the wrong number, I really
9 don’t know. On the basis this document didn’t see the
10 light of day, apart from our offices, I can’t see the
11 relevance of it.
12 MR LORD: Sorry, Mr Bromley-Martin —
13 A. The fact is you have 8 hectares, you can run 500,000
14 TEUs through 8 hectares period, end of discussion. In
15 fact, some people would say you could run more through
16 that container terminal.
17 Q. Mr Bromley-Martin, if we go back to {D43/751/6}, behind
18 divider 2, that was the figure I took you to of 7,000;
19 do you remember?
20 A. Yes.
21 Q. And you are telling his Lordship on oath that you typed
22 it up and you think it was a typographical error on your
23 part?
24 A. Exactly.
25 Q. Then could you go in the same document, please, to
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1 {D43/751/20}, and to the paragraph above the heading
2 «Timber».
3 A. Am I in still the same tab?
4 Q. Yes, you are in the same tab. It is page 20 of the same
5 draft. I am going to read out the paragraph for the
6 record:
7 «It should be noted that Western are only projecting
8 a capacity of 7,000 TEUs per annum upon completion of
9 their development of the facility, representing of
10 0.1 per cent of the St Petersburg market.»
11 Now, Mr Bromley-Martin, it’s obviously not
12 a truthful explanation that it is a typographical error
13 because the figure of 7,000 TEUs has clearly been
14 analysed by you in relation to the market share that it
15 represents; that’s right, isn’t it? Do you want to
16 reconsider your last answer?
17 A. No, because I repeat, that is a nonsensical number to
18 have in a document like this.
19 Q. No, Mr Bromley-Martin, can you consider the answer you
20 gave to his Lordship that it was a typographical error
21 in the light — it may be a wrong figure, it may be
22 an incorrect or an unreliable figure, that’s a different
23 point. The point I am on is your evidence about three
24 minutes ago this was a typographical error, and I’m
25 showing you another section of a report that you claim
1 annum?
2 A. Just — 80,000.
3 Q. And 35,000 per month would be how much?
4 A. It would be nearer 400,000.
5 Q. And if we go to {D44/753/22}.
6 A. Sorry, which tab is that?
7 Q. Still behind divider 4. It’s the equivalent paragraph,
8 above «Timber».
9 A. Sorry, what page again?
10 Q. Page 22, {D44/753/22}. It’s the equivalent paragraph
11 where you seem to convert the projected capacity of TEUs
12 per annum into a percentage share of the St Petersburg
13 market; can you see that?
14 A. Mm hmm. Mm hmm.
15 Q. So it does look on the face of it, Mr Bromley-Martin, as
16 if you have given it a bit of thought, because you have
17 carried out some analysis based on market share, haven’t
18 you?
19 A. I knew what the throughput was and just did it in my
20 head, probably, at the time.
21 Q. Is that your explanation for why this figure is changing
22 so significantly between the drafts?
23 A. I see no relevance to the fact that I changed a draft in
24 an internal document to the fundamental point, and that
25 is that 8 hectares is capable of handling at least
85
1 to have drafted or typed where it looks like you have
2 taken the 7,000 TEUs per annum and you have actually
3 analysed that figure in terms of its percentage market
4 share, and I am asking you in the light of that, in
5 other words, it wasn’t just a slip on the keyboard, it
6 is more than that. So do you want to revisit the answer
7 or do you want to stay with your answer on oath that it
8 was a typographical error?
9 A. I believe that the most likely explanation for this
10 absurdly low number is a typographical error. I mean,
11 you wouldn’t have a discussion about a container
12 terminal doing 7,000 TEU per year. You could do that in
13 your back garden.
14 Q. Then if we go to the 35,000, that’s behind divider 3,
15 {D44/753/6}, that’s the 35,000 — sorry, no, my wrong
16 reference. It is divider 4, I think.
17 Yes, behind divider 4, {D44/753/6} where you say it
18 is up to 35,000 TEUs per annum. Again, I think you told
19 his Lordship a few moments ago that, again, that was
20 probably another typographical error on your part. Is
21 that your explanation for that figure?
22 A. It may be that 35,000 per month would be a realistic
23 number and it may be that we were batting it backwards
24 and forwards between TEU per month and TEU per annum.
25 Q. All right. But 7,000 per month would be how many per
87
1 500,000 TEU per year.
2 Q. If we go back, please, to the original draft behind
3 divider 1, and if we go to {D43/750/13}, you can see
4 that you included some statistics on that page.
5 A. Mm hmm.
6 Q. Which I don’t think feature later, in later drafts; can
7 you see halfway down the page there is a sentence:
8 «Other statistics. 30,000 TEUs per hectare and
9 1 metre of quay equals 1,000 TEUs.»
10 A. That was just an aide-memoire to me.
11 Q. Yes, but Mr Bromley-Martin, weren’t you there setting
12 out what would be the orthodox or conventional figure
13 for TEUs per hectare?
14 A. That was the historical information that I found on the
15 internet which was later disproved by updated practice
16 in the industry.
17 Q. As you were led to believe by Dr Arkhangelsky in this
18 information —
19 A. Vitaly had nothing to do with us finding the information
20 at all.
21 Q. But when you started out, your first draft information
22 memorandum —
23 A. The person I was relying upon at this stage was actually
24 James Sutcliffe, based on his experience at Gdansk;
25 he was a major input. There was also another gentleman
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1 who was helping us as well, who was in Singapore, who
2 was also a long-standing container manager operator, so
3 we were getting the bulk of information from those two
4 gentlemen.
5 Q. I’m going to suggest, Mr Bromley-Martin, that a figure
6 of 30,000 TEUs per hectare, in other words, 240,000 TEUs
7 per annum, is a more realistic estimate for the
8 potential container capacity or turnover of this
9 developed site?
10 A. I’ve already told you a few minutes ago, with modern
11 methodology, modern software that you can stack — if
12 you look at my sheet here, I’ve used two and a half
13 containers’ height. Most container terminals are using
14 between four and five, so with modern systems, you can
15 greatly increase the volume of container throughput.
16 If you did need extra space, as a lot of city ports
17 do around the world, the techniques are now moving
18 towards what they call ICDs, inland container depots, in
19 which you put — either by road or by rail you move the
20 containers as quickly as you can, as the terminal
21 operator, out of the terminal, the seaside terminal and
22 into the inland terminal and therefore you can increase
23 the capacity of your container terminal quite
24 significantly.
25 So with a very small investment of land 3 or 4 miles
1 memoranda?
2 A. But mathematically I was perfectly capable of doing the
3 mathematics.
4 Q. But you were deferring to Mr Sutcliffe for the more,
5 sort of, if you like, expert port turnover analysis
6 really?
7 A. To a certain extent, yes.
8 Q. Well, completely, from that last answer, I think a few
9 seconds ago?
10 A. Well, no, his experience at Gdansk was an input, but we
11 were also taking data from Mundra, Port Klang and
12 Singapore.
13 Q. Had you ever raised money for the development of a port
14 before you were involved with the Western Terminal?
15 A. Not a —
16 Q. Container port?
17 A. Not a container port, no, but a bulk materials import
18 terminal, yes.
19 Q. So you had no experience of any development of
20 a container port by the time you came to produce these
21 draft information memoranda?
22 A. What would you consider to be different from any other
23 port apart from the craneage that sits on top of it?
24 Q. Just answer the question: you hadn’t developed any
25 container port? Because we are now talking —
89
1 away you could have increased the capacity of this
2 terminal considerably, and hence the figures that Drewry
3 are promulgating, together with Scott Wilson.
4 Q. But on an 8-hectare site, that last justification
5 wouldn’t apply, would it? You couldn’t rely on the
6 explanation you have just given if you were confined to
7 this 8-hectare site?
8 A. It would give you a week’s storage at 2.5 metres high,
9 so by definition, if you are stacking five high, you
10 have two weeks’ storage which is far, far more than the
11 industry average.
12 Q. And you are saying that you were relying at this point
13 in time on Mr Sutcliffe’s opinion, were you?
14 A. He was putting in figures based on his experience at
15 Gdansk, yes, and the basis on which they had designed
16 Gdansk.
17 Q. All right.
18 A. I should add, at this stage, my port experience was
19 largely in bulk materials rather than containers, so
20 therefore I was relying upon other peoples’ information.
21 Q. I understand.
22 A. But since then, in the last five years, I’ve done
23 nothing but container terminals, hence, I’m rather more
24 fluent on the subject myself.
25 Q. But you weren’t at the time you did these information
91
1 A. No, no.
2 Q. We are now talking about container turnover, aren’t we?
3 A. Mm hmm.
4 Q. Not timber or something else, so I just want to
5 establish what your experience was of a container
6 terminal, any kind of development or project finance,
7 experience in relation to a container terminal before
8 you were involved with the Western Terminal project.
9 I think you have said that you had none; is that right?
10 A. A port dedicated to containers, no, I had not had
11 experience.
12 Q. And if you go, please —
13 A. But I have raised about $3 billion of project finance in
14 my 30-year career.
15 Q. If you go to {E5/17/22}.
16 A. Sorry, which tab is this?
17 Q. It’s going to come on screen. Sorry, Mr Bromley-Martin,
18 it is my fault. There are some extracts from an expert
19 report in this case from a Mr Popov from Deloittes in
20 Russia, and he sets out some statistics, also there are
21 figures, on container ports; all right?
22 A. Mm hmm. Yes, so which paragraph are you pointing me to?
23 Q. It’s really the next page, really, because it is
24 {E5/17/23} for his Lordship’s note, because Mr Popov,
25 I think, sets out in that table at the top some figures
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1 which he has come across for the capacity by reference
2 to certain other terminals; can you see?
3 A. Mm hmm.
4 Q. And he sets out Rotterdam, Hamburg, Antwerp, Bremen,
5 Valencia and Felixstowe. Can you see that?
6 A. Mm hmm.
7 Q. And those look as though they are container terminals.
8 A. Yes, most of them seem to be, yes.
9 Q. And can you see he has a figure on the right-hand side,
10 it is productivity and he has a figure of thousand kTEU
11 per year per hectare; can you see that?
12 A. Mm hmm.
13 Q. And he has set out the various figures down there and he
14 has worked out a maximum and an average, can you see at
15 the bottom of the page?
16 A. Yes.
17 Q. And the average is 27,000 TEUs per hectare, per year,
18 isn’t it?
19 A. Yes.
20 Q. Do you have any reason to challenge or to doubt that
21 that would be a sensible average figure for container
22 turnover? 27,000 TEUs per year, per hectare?
23 A. That seems particularly low. Based on other data that
24 I have not only come across personally, but that I’ve
25 been able to collect off the internet.
1 Q. Which follows on from your capacity evidence, your
2 turnover evidence, you say this. You then refer to
3 the debt and you say:
4 «The key to this is the huge cash generation
5 capacity of the business, allowing the business to
6 service considerable debt. But still backed by
7 significant assets.»
8 So my understanding of your evidence was: well,
9 there’s going to be very significant debt with this
10 project, but the nature of the business is going to be
11 a cash-generative business and that’s going to provide
12 the means to service the debt; would that be a fair
13 reading of your evidence?
14 A. Yes.
15 Q. And I’m only asking you to tell his Lordship, please, on
16 oath, what you think the effect would have been on the
17 model, on the viability of this model, if his Lordship
18 decides that the right turnover figure is not 500,000
19 units per year, but let’s say, for argument’s sake,
20 250,000 per annum.
21 A. Because I have worked this all out for you because
22 I suspected this might be a question. I would expect
23 that the profitability in year five would go down from
24 $150 million to around $80 million.
25 Q. But Mr Bromley-Martin, if the container turnover halved,
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1 But I think you need — I think part of the problem
2 here is that you are talking about two very different
3 types of terminal: one is a transhipment facility, the
4 bulk of these seem to be transhipment facilities, some
5 are intermodal, and transhipment tend to be less
6 productive per hectare because they need more storage,
7 waiting for ships rather than an individual lorry, so
8 therefore you would expect a transhipment terminal,
9 which the bulk of these are, would be lower than an
10 intermodal because ships don’t come as regularly as
11 trains do, so therefore there is a longer waiting time
12 in the transhipment facilities.
13 Q. Just assume for one moment that his Lordship decides
14 that a more realistic figure for TEUs per annum for the
15 Western Terminal once developed, let’s say a more
16 realistic figure is 30,000 per hectare, which is roughly
17 250,000 per annum, so half your 500,000 figure, what
18 effect would that have on the model?
19 A. I have worked that out. It would reduce — it would
20 reduce the NPV down to between 150 million and 200
21 million from about 300 million.
22 Q. What would it do in terms of the income, because one of
23 the points you make, I think, in your witness statement,
24 at paragraph 38 on {C1/3/7}.
25 A. Mm hmm.
95
1 it may not have an effect, exactly, of a half, but it is
2 going to have a very dramatic effect, isn’t it, on
3 reducing the income, because the revenue comes from the
4 handling of units, doesn’t it?
5 A. Mm hmm.
6 Q. So if you halve the number of units, all things being
7 equal, you are going to be halving the turnover, aren’t
8 you?
9 A. Isn’t that what I’ve just said?
10 Q. Do you agree?
11 A. Yes, I’ve just said 150 to 80 million, that’s roughly
12 half, isn’t it?
13 Q. But the project still has the same level of debt to
14 service, doesn’t it?
15 A. Mm hmm.
16 Q. And therefore you are not going to have the cash you had
17 hoped to have to service the debt that you still have;
18 that’s right, isn’t it?
19 A. No, you are being rather over simplistic.
20 Q. Why?
21 A. Because you are doing this in two dimensions. There are
22 multi-dimensions.
23 The development of this port was going to be done in
24 two or three phases, was it not?
25 Q. Yes, three phases, I think.
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1 A. Right. So each of those phases would have a no-go 1 A. Mm hmm.
2 decision based on the throughput; yes or no? 2 Q. — following the borrowing of US$300 million —
3 Q. Mr Bromley-Martin, if — 3 A. Yes.
4 A. So, therefore, you would reduce your capex and 4 Q. — you are positing an annual turnover of 500,000 TEUs
5 everything else, so you wouldn’t draw down the full 5 per year, aren’t you?
6 300 million. 6 A. A fraction under, yes, but yes. That’s the nominal
7 Q. Mr Bromley-Martin, the — 7 capacity. A terminal probably does 80 or 85 per cent in
8 A. So, therefore, your debt service would be considerable 8 reality.
9 less and something you could easily handle even with 9 Q. And I am asking you to tell his Lordship, as the project
10 half the revenue. 10 finance expert who studied this model for the purpose of
11 Q. Yes, but you are suggesting, aren’t you, I think, that 11 today, what in rough terms the effect would be on this
12 you don’t develop the project to the same extent. 12 model, on your model, if you have developed everything
13 You can’t have it both ways, you can’t reduce the 13 as you are suggesting, but the income — the turnover
14 capital expenditure to reduce the debt for the purpose 14 turns out to be quarter of a million, not half a million
15 of this answer and not accept that that is going to have 15 TEUs per year. Just tell his Lordship what sort of
16 a depressing effect on the potential capacity. You 16 financial effect that is going to have.
17 can’t have it both ways, Mr Bromley-Martin. I am 17 A. It would reduce, your Lordship, the NPV, the net present
18 dealing with the development project and I am putting to 18 value of your revenue stream, okay, down, and the figure
19 you that once developed you are suggesting half 19 I gave you just now is 350 million down to about
20 a million units per year, and I am asking you to deal 20 170 million or 180 million.
21 with the point that it might be half that, and your 21 Q. And you are not going to have —
22 answer seems to be: well, you could have less capital 22 A. So —
23 expenditure, so less interest burden. 23 Q. On that hypothesis you still have all the same expenses,
24 But if there is less capital expenditure, how will 24 all the same costs.
25 you have developed the project, Mr Bromley-Martin? How 25 A. No, you haven’t. No, you haven’t. Forgive me, but if
97 99
1 will that have happened, and what bits of
2 the development are you suggesting would not take place?
3 A. I didn’t think we were at this simplistic level.
4 The project was to start with SV-15, was it not, and
5 to largely develop that in 2008. So that was going to
6 be the first phase. You then have a go or no-go
7 decision depending on the state of the market in order
8 to convert SV-16, yes, and therefore you would build
9 that into your agreement with the banks, that if the
10 business didn’t accrue to that terminal as you expected,
11 you would defer or cancel further drawdowns of your
12 debt.
13 Q. Mr Bromley-Martin, I wasn’t being simplistic. What bits
14 of the development are you suggesting would not have
15 been undertaken if various capital expenditure savings
16 had to be made. What are you positing? No third berth,
17 no second berth?
18 A. You would postpone the second berth. That’s a perfectly
19 normal, common sense aspect to do, is it not, and the
20 third phase, if I can just finish there, would be to
21 reclaim the material from the torpedo barrier and use
22 that to reclaim the third berth. So you would have
23 deferred that or cancelled it.
24 Q. But if we look for one moment at your model of
25 the as-developed Western Terminal —
1 you only have two cranes rather than six, you are going
2 to have less drivers, aren’t you, so you are going to
3 keep your costs down? You don’t have to have so many
4 customs men. So you reduce your overheads as well as
5 your direct costs and the amount of equipment and the
6 amount of hardware and everything else that goes with
7 it. So you could amend your business model to suit the
8 prevailing conditions.
9 Q. Is it your evidence that a borrowing of US$300 million
10 by way of this project was going to be viable once
11 developed if the turnover was only 250,000 units per
12 year, not 500,000? And when I say «viable», I mean
13 independently profitable and sustaining, so you are
14 clear about that, because we are going to come to
15 the ringfencing of it in a minute. So I am looking at
16 the business proposition: is this a viable business
17 proposition?
18 A. Right, when you are running a business you have two
19 important aspects to look at: one is the profit and one
20 is the cash flow; yes?
21 Q. Yes.
22 A. Now, because you have a lot of capital equivalent here,
23 you would have a very high level of depreciation. So
24 whilst you are cash-generative, hugely, in a project
25 like this, you have a seriously large depreciation
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1 charge every year going into the accounts, which
2 sometimes puts you into a retained profit/loss
3 situation.
4 Now, my argument is to you that you would still have
5 enough money, enough cash coming in to be able to
6 service the reduced level of debt because you hadn’t
7 done, or deferred phase 2 and phase 3. So you would cut
8 your cloth to suit your — well, in that sense.
9 Q. If we go to your spreadsheet, if we go to your July
10 model, {D55/944.1/1}.
11 A. Mm.
12 Q. Which is a spreadsheet. If we could open the summary
13 page, please, on screen.
14 A. Is this inside the IM?
15 Q. No, it’s a spreadsheet, I am afraid. {D55/944.1/1}.
16 A. Sorry, D50?
17 Q. Could you open the summary tab, please, at the bottom.
18 A. Yes.
19 Q. This is your July 2008 model, Mr Bromley-Martin.
20 A. Yes.
21 Q. Where I think you suggest various — well, you project
22 various financial figures.
23 A. Mm hmm.
24 Q. Over time. You were assuming here, weren’t you, that
25 the project started in the year 2008, weren’t you?
1 Q. So you lose?
2 A. So it’s roughly half the revenue, as you would expect.
3 Q. Yes, that must be right, mustn’t it? So 154, you have
4 a turnover of 154 million, haven’t you, there?
5 A. Yes. That’s promulgated on an actual throughput of,
6 I think 434,000 containers a year, from memory.
7 Q. And you are halving it to 75 million, roughly?
8 A. 75 or 80, yes.
9 Q. And so where are you saying these other savings are
10 going to come, then? Where will they come?
11 A. Well, your major savings are going to be in the interest
12 charge of 36 million, isn’t it?
13 Q. Well, no, because by this stage you have still borrowed
14 the 300 million. On this hypothesis you have still
15 borrowed US$300 million?
16 A. Can we go back? Can we go back? If you don’t see your
17 throughput increasing at the level you expected it to
18 increase, you don’t magically put in an investment for
19 500 million containers and hope that the containers
20 arrive. That is a ludicrous way of doing business.
21 Sorry.
22 So you start — you start a business with one
23 terminal, yes, build that up and when you are ready,
24 when you have the market demand, you then start
25 the second aspect, and so on and so forth. So you do
101 103
1 A. Yes. 1 not draw down the full 300 million until you are certain
2 Q. That’s when you were assuming. 2 that you have got the 500,000 TEU throughput, or
3 A. Because as we discussed earlier on this morning, work 3 thereabouts.
4 was already starting on the hard standing in SV-15. 4 Q. We are testing, Mr Bromley-Martin, the viability of this
5 Q. So «Turnover», that’s at the top, is it, under «Total»; 5 project in the as-projected state. I take your point
6 is that right? 6 that if the business doesn’t go as well, it won’t be
7 A. Mm hmm. 7 developed, but we are into a different world then, and
8 Q. I’m asking you to explain to his Lordship, if the 8 we can debate that later on this afternoon.
9 throughput of containers is half what you were 9 But I am assuming in your favour, for the purposes
10 suggesting — 10 of this question, that everything else goes to plan, and
11 A. Mm hmm. 11 I am asking you to consider just the effect upon the
12 Q. — what effect would it have, year-on-year, to those 12 model of this different TEU per annum figure. I take
13 topline figures. Work it through, if you like: 2008, 13 your point that we may never get to this point; the
14 2009, 2010, 2011, 2012. 14 project may be abandoned or go bust earlier, I’m sure
15 A. I have the numbers right here. It would have reduced 15 that’s very likely.
16 the year 2012 figure to 101 million from 154 million. 16 But let’s just focus on your best case, which is
17 Q. And so it would make a loss, then? 17 that everything gets developed, as you suggest, but
18 A. No, it would have made a small profit. 18 there is a problem: in the end the capacity is half what
19 Q. What — 19 you are suggesting. What effect would that have on your
20 A. But, again, profit — can we just take time out here for 20 model? It’s not whether it would happen in fact, but on
21 a second? 21 the model. On the hypothetical model. That’s what I’m
22 Q. No, sorry. No, you can’t say that, because you said 22 asking you to address; do you understand?
23 down to — what was the figure you just said, down to 23 A. Right. I think I have addressed it by telling you that
24 what, 100-and-what-million? 24 the revenue would halve.
25 A. To below 100 million. To below 100 million. 25 Q. Right.
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1 A. But you would still generate a significant amount of 1 $300 million developing and you have all this fixed
2 cash. 2 equipment depreciating there, and it turns out the TEUs
3 Q. And if it halves in the year 2012 to 75 million — 3 are half what you thought and the revenue is halved from
4 A. Mm hmm. 4 $150 million to $75 million per year, that that is going
5 Q. — you are going to make a loss, aren’t you? You have 5 to completely destroy the viability of that business,
6 said the main cost is going to be capital depreciation. 6 because it is only making —
7 Well there will be no saving there, will there, if, in 7 A. I totally and utterly disagree with you, I am sorry,
8 fact, the capacity is lower, because that depreciation 8 because you are still going to have free cash flow of
9 will happen whatever the actual throughput, won’t it? 9 around 45 million, okay, and your debt service, as we
10 So you are saying that there will be — 10 see there, is 33 million. So you still would be able to
11 A. Right, so let’s assume, then, that we are paying 11 cover your debt service; yes?
12 $33 million a year in interest; is that what you are 12 Q. Yes, but sorry, Mr Bromley-Martin, what you are really
13 saying? 13 saying is you don’t make an allowance for the capital
14 Q. I think I’ve put enough to you, Mr Bromley-Martin. I’m 14 depreciation in that year; is that what you are saying?
15 going to submit that you are not — 15 A. As I explained right at the beginning of the answer to
16 A. No, no, I’m just answering the question. Okay, I have 16 this question, so then with a depreciation you make
17 the answer in front of me, I do not understand what you 17 a profit — a loss before tax, okay? But you still have
18 are driving at but let me try and answer what I think is 18 cash in the bank. The project is still viable in
19 your question. There’s $33 million of debt, interest in 19 the cash sense.
20 2012. 20 Q. No, but it’s not viable, is it, in a profitable sense,
21 Q. That’s right. 21 because all you are doing there, what you have really
22 A. If we have drawn down the full 500 million, okay? 22 done, you have taken out of this analysis the capital
23 Q. 300 million. 23 depreciation from the analysis, haven’t you?
24 A. If we cut the throughput in half, the company still 24 A. Well, if …
25 makes a profit of around 46 million; okay? 25 Q. Is that right or not, that that’s what you have done?
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1 Q. How do you work that out?
2 A. Because I have altered the —
3 Q. On this model, on these figures here.
4 A. Yes.
5 Q. 75 million —
6 A. I am not sure who is controlling this. Whoever is
7 controlling it, if they could go along the tabs to
8 the very right-hand end. Keep going to the right. Keep
9 going to the right. That is it. Can you click on the
10 «Curves», that red one that’s come up. That’s it.
11 Click on the «Curves». Right, this is what I mean by
12 the S-curve, yes. Do you see the numbers in column C?
13 Q. Yes.
14 A. Okay, if you change those down so your S-curve changes
15 so that in month 36, in row 39, you chose that to
16 50 per cent, you could see immediately — you would have
17 to clearly do all the intervening numbers, those five or
18 six intervening numbers, but you would be able to alter
19 your throughput to do any sensitivity analysis you would
20 like to, and that’s what I’ve done here and that’s why
21 I’m giving you these numbers.
22 Q. I want to go back to the page I was on, please. You can
23 be re-examined on this, but if you go back to
24 the summary page, please, because it looks in a very
25 simple way that if you have a port which you have spent
107
1 A. Because that’s how you value a project.
2 Q. I understand that.
3 A. You value a project on a multiple of EBITDA, which is
4 before amortisation and depreciation.
5 Q. I know, but, Mr Bromley-Martin, the reason you have to
6 make an allowance for depreciation is because any
7 sustainable business is going to have to replace
8 depreciating assets, isn’t it, in the end; isn’t that
9 right?
10 A. Yes, but the project is still viable, there is still
11 an enterprise value to the business because it is
12 generating an EBITDA.
13 Q. You are effectively standing over making allowance for
14 the depreciation that the capital has suffered in that
15 relevant year, aren’t you?
16 A. Yes, but you are also making another gross supposition
17 that you can’t move the cranes away and convert the port
18 for some other use.
19 Q. Do you agree that if the income halved, the business
20 would not be profitable?
21 A. At EBITDA level it would still be very profitable.
22 MR JUSTICE HILDYARD: There is a problem of apples and pears
23 here, Mr Lord.
24 MR LORD: Maybe.
25 MR JUSTICE HILDYARD: There is money and there is
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1 accounting.
2 A. Exactly, sir.
3 MR LORD: I have put to Mr Bromley-Martin —
4 Mr Bromley-Martin, I take your point that there may
5 be enough cash still coming in to pay the banks. I take
6 that, but the point I am putting to you is, in terms of
7 the viability of a business it is fire-fighting. You
8 are storing up problems because you are not making
9 enough to pay for the capital depreciation. So in the
10 end, another year, two, three —
11 A. There is no cash movement. There is no cash movement.
12 75 per cent of all companies that go bust are profitable
13 but they run out of cash. The situation here is
14 completely the reverse. You may not make a profit, but
15 you still generate a huge amount of cash, okay?
16 Q. So is your evidence that with a halving of the income,
17 turnover, this would still be a profitable business? If
18 you put 75 —
19 A. The enterprise value, using an enterprise value of five
20 or six times EBITDA, yes, this project would be hugely
21 profitable.
22 Q. No, on that year’s accounts, if you change the figure
23 for turnover to 75 million, what effect would it have —
24 A. With the greatest of respect, accountants play all sorts
25 of silly games with depreciation rates, yes? It is
1 the EBITDA seems to maintain itself.
2 MR LORD: It does, my Lord, but all that begs the question
3 whether the businessman who is running it has to borrow
4 the 300 million. Of course one could value a business
5 on the first few lines of this, but I am looking at
6 whether or not this was a sustainable business in
7 the hands of OMG, and you have to take into account, in
8 my respectful submission, the leverage you built in. We
9 will come to the documents later, but you can’t ignore
10 the $33 million interest. True enough, the business
11 may, in isolation, be generating those returns, but you
12 have to factor in, or you may have to factor in for
13 your Lordship’s consideration, whether OMG was going to
14 be able to run this business, because it had to borrow
15 all the money.
16 A. But practically every single port in this world is done
17 on a leverage basis. So if you have an offshore supply
18 base where you have long term contracts, which you do in
19 this, you can leverage to 70 or 80 per cent. So on some
20 pretty mild leverage in this instance, it is common
21 practice in the industry because it is such
22 a cash-generative operation.
23 Q. Can I ask you about the handling charge, please?
24 A. Yes.
25 Q. Paragraph 34 of your statement, {C1/3/6}. Do you agree
109 111
1 arguable whether a crane lasts for five years or ten
2 years, but it is obviously tax efficient to decrease
3 your period of amortisation on a bit of equipment as
4 much as possible. That’s what capital allowances are
5 all about in tax legislation here in this country, for
6 example.
7 So, therefore, by increasing the depreciation, you
8 in fact decrease your tax bill but without using any
9 cash up, because the cash still comes in. So that is
10 why —
11 MR JUSTICE HILDYARD: I think what Mr Bromley-Martin is
12 reminding us of, Mr Lord, is that people valuing
13 a company will do so of a multiple of EBITDA, which is
14 the earnings before interest, tax and appreciation.
15 That’s what they do.
16 A. Thank you, sir.
17 MR JUSTICE HILDYARD: And I think Mr Bromley-Martin is
18 reminding us of that.
19 MR LORD: Yes, and I am asking about whether this business
20 was a viable business.
21 MR JUSTICE HILDYARD: Well, the EBITDA figure, which itself
22 may move, because you don’t quite know whether all the
23 money is going to be drawn down and you don’t quite know
24 how much investment is going to take place on the
25 lowered expectations, so it’s all a bit approximate, but
1 that another major component for turnover was the
2 handling charge per TEU?
3 A. Yes.
4 Q. And you have said in paragraphs 34 to 35 that
5 Dr Arkhangelsky suggested US $250 per unit, Mr Sutcliffe
6 suggested US $120 per unit, and you went for US $210.
7 A. Which actually, in the fullness of time, has proved to
8 be absolutely correct.
9 Q. If you listen to the question; that is what you are
10 saying, isn’t it?
11 A. Yes, because Mr Sutcliffe — can I take you back to the
12 point, that a transhipment facility is very different to
13 an intermodal facility. I’m trying to explain to you
14 the difference.
15 MR JUSTICE HILDYARD: Do you mind if we see {E5/17/22} and
16 {E5/17/23} because I wanted to understand this
17 difference between the transhipment and the intermodal,
18 and it may be that we will have a chance with Mr Popov
19 as well, but I didn’t know which ones, in the view of
20 Mr Bromley-Martin, are transhipment and which are
21 intermodal facilities, and it makes a huge spread.
22 There is a huge spread in these figures from about 1,000
23 to 6,000, I noticed, and I didn’t know which ones were
24 which. Maybe 23 is the better page.
25 A. Well, all that list on 23, by and large, are all,
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1 I would say about 70 per cent of those are transhipment
2 facilities.
3 MR JUSTICE HILDYARD: I mean, take, for example, MSC PSA
4 European Terminal, and take, again, Bremerhaven
5 Container Terminal; do you know what they are?
6 A. Yes, sir. They are trans — by and large, they will
7 have a mixture — actually the Belgian ones will have
8 a mixture, but if we can take a pure transhipment
9 facility like Gdansk, okay, with a draught of 16 metres,
10 so they can bring ships in from the Far East or America,
11 coming in at probably around 12,000 or 13,000 TEU per
12 vessel, and they would drop the bulk of those off at
13 Gdansk and then lots of little ships, feeder services,
14 would then take them through to St Petersburg,
15 Stockholm, Helsinki, or whatever, yes.
16 Now, that sort of business, there’s nothing to do
17 except pick the container out of a ship, stack it, wait
18 for the next ship to come and put it back again.
19 There’s no customs clearing, there is no stuffing or
20 de-stuffing of containers and you are not waiting for
21 railway lines or anything like that.
22 Whereas St Petersburg is completely the opposite and
23 it is intermodal. There is no transshipping to speak of
24 in St Petersburg, because it is effectively the end of
25 the sea route, if I can put it that way, and therefore
1 ones, they would probably be transshipped into barges
2 going up the Rhine or something like that.
3 MR JUSTICE HILDYARD: And when you say the bulk, do you mean
4 most of the ports or most of the business within the
5 ports?
6 A. Most of the business within the ports.
7 MR JUSTICE HILDYARD: Thank you.
8 A. So to go back to answer your question, sorry —
9 MR LORD: Sorry, Mr Bromley-Martin, are you saying that
10 Gdansk is intermodal or a transhipment?
11 A. It has — they are extending it into being intermodal at
12 the moment, but it started life as a pure transhipment
13 facility.
14 Q. So in paragraph 34 of your witness statement, {C1/3/6},
15 you are looking at Rotterdam and Gdansk, and you are
16 saying that those are transhipment terminals in this
17 statement, aren’t you?
18 A. That’s what I’ve just said to his Lordship.
19 Q. I see, yes.
20 A. And just finally, on volume, minimal service and are
21 highly competitive, ie that’s why your average TEU —
22 sorry, your average dollar per TEU you get is about
23 $120, whereas on an intermodal, if you look at some
24 reports produced by the EU, who did a report into it,
25 they are saying that some of the terminals at
113 115
1 you either have to put it on a road transport or
2 a railway container wagon. So that is intermodal. So
3 it’s a different means of transport and that’s the
4 difference.
5 Now, when you are doing that there are all sorts of
6 things come in, because you are waiting for a lorry
7 driver to come and pick it up, so you get extra
8 demurrage because he is five days late because he was on
9 another job or the railway broke down and there’s
10 customs clearance to be done. Some people might want
11 their containers unloaded in the port so they don’t have
12 to take their containers away and bring them back clean,
13 so they pay to de-stuff them, so therefore you would
14 find an intermodal facility has lots of hidden charges,
15 and I have examples here that I can show the court, if
16 required, that I have taken off the web. They run to
17 21 pages of different charges for some of these
18 intermodal things.
19 So, therefore, comparing Gdansk and St Petersburg
20 rates is, to use your expression, sir, apples and pears.
21 MR JUSTICE HILDYARD: But on page 23, just for my
22 understanding, you reckon these are all transhipment?
23 A. The bulk of — just quickly glancing down it, the bulk
24 of these terminals would be transhipment, yes. The bulk
25 of the Dutch ones and, to a certain extent, the Belgian
1 St Petersburg are going up to $370 per container.
2 Q. Going back to your paragraph 35, I was asking you,
3 I think, just to confirm that Mr Sutcliffe thought that
4 US $120 per unit was the appropriate handling charge to
5 take —
6 A. Because of his experience at Gdansk.
7 Q. In answer to my question, it is yes, isn’t it: he
8 thought that that was the right figure?
9 A. He gave me that number on the basis of his experience at
10 Gdansk.
11 Q. And at the time, you confirmed that you did not have
12 much experience in ports and you were reliant upon
13 Mr Sutcliffe; is that right?
14 A. In the very early stages, yes.
15 Q. Well, throughout the period, presumably —
16 A. He appeared to be somebody who knew the industry very
17 well.
18 Q. And it is right, isn’t it, that you still — do you not
19 still defer to Mr Sutcliffe in relation to expert port
20 matters?
21 A. I hope not.
22 Q. I will take you to your website.
23 A. I hope not.
24 Q. Right. If we go to {D197/2945/1}. This is your
25 LinkedIn profile. If you scroll down, please, to
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1 {D197/2945/4}, you can see «Associated industry
2 specialists», and then over the page, {D197/2945/5}, you
3 have «Port Evolution and Development (Africa)» and then
4 Port-Evo. Can you see that?
5 A. Yes.
6 Q. Is there some sort of association or tie-up with
7 Port-Evo?
8 A. I own Port-Evo. Port Evolution and Development (Africa)
9 Limited.
10 Q. Right, and if we go to {D197/2944/1}, this is
11 Mr Sutcliffe’s summary, and he says «CEO/Owner Port
12 Evo».
13 A. That’s Port Evolution Management Limited.
14 Q. And what’s the connection between those companies?
15 A. None at all. Mr Sutcliffe proved a very unreliable
16 partner and I bought him out of Port Evolution (Africa).
17 Q. Right, so there are different companies with a
18 Port Evo —
19 A. With a common provenance, perhaps, you could argue.
20 Q. If we go back to your handling charges.
21 A. Mm hmm.
22 Q. If you go to {D52/889/29}, please, which is in
23 the Western Terminal bundle, behind divider 10, you set
24 out some competitor handling rates there, don’t you?
25 A. Mm hmm.
1 please.
2 MR JUSTICE HILDYARD: Is that in the Western Terminal?
3 MR LORD: No, it’s not, my Lord. We can have these pages
4 photocopied.
5 MR JUSTICE HILDYARD: Thank you, yes.
6 MR LORD: And if we could have, also, please, {D74/1070.1/1}
7 because that is the September model, so we have the July
8 model and the September model.
9 If you could get D55/944 — if you scroll up, that’s
10 it. That’s perfect. If you do the same on the other
11 sheet, assumptions, that’s helpful, then scroll up.
12 Assumptions tab, and then scroll up.
13 So his Lordship can just see the way you did the
14 modelling, Mr Bromley-Martin?
15 A. Mm hmm.
16 Q. It’s right, isn’t it, that in the July model you had
17 a straight handling charge of 210?
18 A. THC, yes.
19 Q. And isn’t that the one that Mr Sutcliffe said should be
20 120?
21 A. I thought we had already addressed this point.
22 Q. Is it yes or no?
23 A. This is intermodal, not transhipment.
24 Q. But I thought he was suggesting a figure for use in this
25 modelling?
117 119
1 Q. I have worked out the figures, and the average handling 1 A. Incorrectly, I’ve just told you five minutes ago that he
2 charge per unit is US $165, if you look at the first 2 was incorrect in that because this is not a transhipment
3 category «Handling operation». 3 facility, it is an intermodal facility.
4 A. How did you work that average out? 4 Q. He may have been wrong to suggest it, but did he suggest
5 Q. I took the figures there, 165, 173, 161 and 161, and 5 it as being the figure that he would have put in for the
6 I averaged them out. I averaged out the first four 6 basic handling charge for Western Terminal?
7 categories. 7 A. I believe him to be incorrect. Is that clear? He
8 A. Forgive me, but that’s nonsensical. 8 proved to be incorrect.
9 Q. Why is that nonsensical? 9 Q. Did he suggest that an appropriate figure for the
10 A. Because I have just explained to you that you get 21 10 handling charge, the basic handling charge for the
11 pages of charges, so the 165 is what is known as a THC, 11 Western Terminal model should be US $120 per unit? Yes
12 a terminal handling charge, and that purely is the cost 12 or no?
13 of getting the container out of a ship and into a stack. 13 A. He did suggest that, yes.
14 Q. Right. 14 Q. Thank you. In your July model you have taken 2010,
15 A. If it has to be picked up and put on the back of 15 haven’t you?
16 a railway wagon or on the back of a lorry or de-stuffed, 16 A. Yes.
17 or customs-cleared or it stays too long, you can earn up 17 Q. And that’s the straight handling charge, isn’t it?
18 to $500 for that, or $450, you see, in addition. 18 A. Yes.
19 If you look at — the EU did a report in 2009 and if 19 Q. So that charge can be compared with the transhipment
20 you look at that they will show you that the average for 20 charge, can’t it? There’s no intermodal uplift that
21 St Petersburg is $257 per TEU handled in St Petersburg 21 goes into a straight handling charge, is there?
22 port. It was a report that the European Union did into 22 A. Okay, let’s introduce a different dimension to it. It’s
23 the competition amongst container terminals in Europe. 23 called market demand, yes.
24 Q. It’s right, isn’t it, that in your July model, if we 24 Q. Yes.
25 have {D55/944.1/1}, if we go to the assumptions page, 25 A. There’s an acute shortage of capacity within
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1 St Petersburg, yes, and so, as I’ve said to you, the
2 independent reports would agree that the THC were 220 on
3 average in St Petersburg at this time. So, therefore,
4 I feel totally and utterly vindicated on the basis of
5 the EU report for using 210 for the THC in this model at
6 this time.
7 Q. Do you agree, Mr Bromley-Martin, as I am putting to you,
8 what you have tried to say, I think, is that
9 an intermodal handling operation involves some
10 additional value which means you can add further charges
11 in to your per unit revenue. I understand that point.
12 I understand that. But I am focusing first on what I am
13 going to call the basic, or straight handling charge,
14 and I think you have agreed —
15 A. Okay —
16 Q. — that that — so it is right, isn’t it, that the four
17 competitors that you looked at, they had a basic or
18 straight handling charge of between $160 and $170 per
19 unit, didn’t they?
20 A. What has transpired from the EU report is that the
21 information we had out of date, if I can use hindsight.
22 Q. Can you answer the question first?
23 A. Yes, I’m answering it.
24 Q. You are saying that recent, later events, vindicate your
25 approach? I wasn’t asking —
1 $161 to $173 per unit, wasn’t it?
2 A. Mm hmm.
3 Q. And in your July 2008 model, you have taken a figure of
4 $210 for that particular charge, haven’t you?
5 A. Because there was —
6 Q. No, just —
7 A. We ascertained that those figures we were given were
8 an undercut of the real, true rates that we found out
9 from shipping companies, that the true rate was nearer
10 210.
11 Q. I will ask it again. It’s right, isn’t it, you can
12 confirm that the rate you took in your July model for
13 this straight handling charge was $210?
14 A. I said yes five minutes ago.
15 Q. And, therefore, that that was appreciably higher than
16 the first category handling charge from the competitors
17 that you identified in your information memorandum?
18 A. 20 per cent higher.
19 Q. And so his Lordship can be clear, Mr Sutcliffe was
20 suggesting that this figure that we are now discussing
21 should have been US $120 million, right?
22 A. Which I have told you was nonsensical and a wrong
23 number.
24 Q. And if we look at what you did in your September model,
25 which we can have on screen, you reduced this straight
121 123
1 A. As I explained to you about half an hour ago, it was
2 extremely difficult to get hold of what is
3 commercially-sensitive data, and that was the best
4 information we could get at the time. We then
5 subsequently discovered that, actually, for purposes of
6 a tariff regulatory requirement that existed in Russia
7 at the time, they were secretly charging extra to their
8 clients, yes, which is borne out by the EU report, yes?
9 And, therefore, we understood that, in fact,
10 reality, that the rates were somewhat higher than we had
11 been led to believe.
12 Q. Can we have, please — if you turn up, please — not on
13 the screen, but if you turn up in your hard copy
14 {D52/889/29} which was the competitors container
15 handling rates which I took you to a minute ago.
16 A. Yes.
17 Q. I just want to confirm, if it’s the case, that where we
18 see in your table, first category, handling operation,
19 you are there talking about what you describe in your
20 assumptions as a straight handling charge; yes or no?
21 A. Yes.
22 Q. That’s why I put to you, Mr Bromley-Martin, that the
23 range of competitor handling rates for the first
24 category handling or straight handling charge, which you
25 put into the information memorandum, the range was about
1 handling charge, didn’t you, in the September 2008
2 model, from US $210 per unit to $110 or $120, isn’t that
3 right?
4 A. Yes, absolutely.
5 Q. So you came down in the September 2008 version of this
6 model —
7 A. Hold on, this was an internal document where I did
8 a what-if scenario, okay? Has it been mentioned in any
9 document that has gone to third parties?
10 Q. That wasn’t my question, Mr Bromley-Martin.
11 A. I’m telling you that this was me playing with my model
12 just to do a what-if scenario as an internal exercise.
13 MR JUSTICE HILDYARD: I think you must try and answer the
14 questions put to you by counsel, Mr Bromley-Martin,
15 without sort of explaining your view as to its relevance
16 or not. He simply was pointing out that the figure
17 reduced from 210 to 110 and that is a fact. Now, he is
18 probably asking you why that is.
19 MR LORD: Well, on the modelling, again, in your evidence
20 you say that you produced a later model in September,
21 and you believe you did it at the request of one of
22 the banks you were talking to, which you believe was
23 Fortis.
24 A. Yes, I think that’s correct, they said: could you just
25 do a what-if scenario. So beg your pardon, yes, you’ve
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1 tripped me up on that one.
2 Q. Mr Bromley-Martin, you are becoming rather
3 argumentative, if I may say. Just listen to
4 the question. I asked you simply to look at the
5 figures. You may have an explanation for the
6 discrepancy and we will come to it in a moment.
7 A. I had forgotten, to be honest with you, that Fortis had
8 asked the question, I just thought it was me just
9 doodling one day to do it. I stand corrected, I beg
10 your pardon.
11 Q. You accept now that the September 2008 model was run at
12 the request of one of the banks?
13 A. Yes, because they would do — they would do — the whole
14 model is promulgated — your Lordship, if I could just
15 explain, all the numbers in red here are assumptions,
16 and so it’s easy to do the sensitivity analysis and
17 therefore they asked me to do it as a result of it being
18 relatively easy. As you can see, you just change five
19 or six numbers.
20 Q. And the reason they asked you to rework the handling
21 charge is because at least one bank thought that your
22 $210 per unit was unrealistically high; that’s right,
23 isn’t it?
24 A. No.
25 MR JUSTICE HILDYARD: Can we finish this line shortly or is
1 I just have a couple of things, Mr Bromley-Martin.
2 Educating lawyers and judges as to business can be
3 an exasperating experience, but nevertheless you must
4 try and keep your calm and answer the questions asked.
5 If, at the end of the day, you feel you need to qualify
6 your answer, well, do so, but otherwise, I lose the
7 track between your argument and the question and that’s
8 not going to assist me in trying to adjudicate the
9 matter at the end of the day.
10 The second thing, and this may demonstrate to you
11 quite how difficult it is to get through the points you
12 want, at least to a judge, is it seems to me the figure
13 we have been looking at, variously 210 or 110, is
14 a figure which will not vary as between intermodal and
15 transhipment, the reason is because that’s the basic
16 cost without the flash-on, add-ons you may achieve by
17 reference to the fact of how long the container is stuck
18 and the difficulties of their moving it. If I have that
19 wrong, don’t answer me now, think of a measured way in
20 which you explain why I am incorrect.
21 A. With your Lordship’s permission I would like to address
22 that when we reconvene.
23 MR JUSTICE HILDYARD: Yes, exactly. I’m just explaining to
24 you where I have got stuck so you can assist me.
25 The third is that Mr Lord may come back to your
125 127
1 this a good time to break? 1 figures, according to whether his investigation of them,
2 MR LORD: We are going to finish it quite shortly, my Lord. 2 because they are rather lately produced, and I see even
3 Two minutes, maybe. 3 you had finished this by 27 February, so it might have
4 If you go to {C1/3/7}, which is paragraph 39 of your 4 been helpful to provide them in advance. I will let him
5 witness statement. I must say, I understood from that 5 guide me as to what his attitude to that is going to be.
6 paragraph, Mr Bromley-Martin, that this September model 6 Then the fourth and last point is, I know you
7 in which you removed the bulk cargoes and reduced the 7 wouldn’t, and probably will use the break much better
8 tariffs, that you had done that at the request of one of 8 than this, but you mustn’t discuss your evidence with
9 the banks, namely Fortis; that’s right, isn’t it? 9 anyone at all over the short adjournment.
10 A. Yes, sorry, that’s why I’ve just apologised as I was 10 A. I understand, sir.
11 mis — (inaudible) my memory. 11 MR JUSTICE HILDYARD: 2.05 pm.
12 Q. I am going to suggest to you, Mr Bromley-Martin, that 12 (1.08 pm)
13 Mr Sutcliffe was right and that $120 per TEU was the 13 (The Luncheon Adjournment)
14 more realistic assumption to take for this project? 14 (2.05 pm)
15 A. I wholeheartedly disagree with you there. 15 MR LORD: May it please your Lordship. Could I just pick up
16 Q. What effect would it have on the model if you took the 16 one of the points your Lordship raised before the short
17 TEU down to $120 or $110? We can see in the September 17 adjournment, which is the status of the document which
18 model, presumably, the effect that that would have? 18 the witness produced earlier today.
19 A. Yes, if you go to the summary, you will see it. 19 MR JUSTICE HILDYARD: Yes.
20 MR LORD: My Lord, I can pick that up, because that’s my 20 MR LORD: My Lord, I think my position is that I do object
21 next topic, the various other modelling aspects of 21 to its being admitted in evidence at all. I do so for
22 the — 22 the following reasons. It appears to be some sort of
23 A. But I would like to put it on record that my evidence is 23 ex post facto rationalisation by this witness. It is
24 supported by the EU competition report. 24 not in a form that allows the reader to understand it on
25 MR JUSTICE HILDYARD: Well, we will reconvene at 2.05 pm. 25 its own terms. It refers to a number of different
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1 sources that are not either identified, or adequately 1 whereby to test it, I quite understand that. I cannot,
2 identified. Those sources are not disclosed. It has 2 I think, and would not, prevent Mr Stroilov re-examining
3 not been verified or confirmed to be true. It’s not 3 in a way which may be by reference to this document
4 been served before cross-examination began and there is 4 under the usual rules of re-examination.
5 no way, really, that I can fairly understand or test 5 I suspect, if I can put it this way, that in all the
6 this material either as it stands at any stage or, 6 events, it may be that this will be used as
7 certainly, having been given the notice that we have 7 an aide-memoire, or deployed as an aide-memoire, and it
8 been given. 8 will carry the less weight because of its lack of
9 My Lord, I submit that it would be of 9 underpinning.
10 questionable — so it shouldn’t be admitted at all, but 10 MR LORD: Very well, my Lord.
11 in any event, if one looks through it, it is really just 11 MR JUSTICE HILDYARD: We will see how it goes, in other
12 a series of typed-up jottings. It is not really 12 words.
13 possible to follow the thread. It appears to be an 13 MR LORD: Yes.
14 attempt to provide some sort of quasi expert, after the 14 MR JUSTICE HILDYARD: You can ask any questions which you
15 event, rationalisation for some points that were going 15 think are inspired by it. Mr Stroilov can ask any
16 to be the subject of cross-examination, and that isn’t 16 questions which are apparently justified by it. Given
17 really the right approach to the rules of evidence, so 17 its lack of footing in terms of source or otherwise,
18 whilst the witness can obviously give whatever answer 18 I may or may not attach any importance to it at all.
19 they want to under cross-examination, and they can 19 MR LORD: My Lord, my alternative submission would be that
20 obviously be re-examined properly without leading 20 it’s of no real probative value. If one goes through
21 questions in relation to cross-examination matters, 21 it, it is hard, with respect, to make sense of it. It
22 I would object to this particular piece of paper or 22 is a series of jottings, really, that have been typed
23 document being allowed into this trial in evidence at 23 up. It’s very hard to follow the thread to say: what’s
24 all. 24 actually being said here and on what basis. Is it after
25 MR STROILOV: Well, my Lord, I am afraid I disagree with 25 the event in question or at the time. I can’t really
129 131
1 that. It’s not a document which is relied on as proof
2 of anything; that is something the witness, as he
3 explained, has prepared in the course of preparing for
4 cross-examination in anticipation of being asked
5 a certain question, and then he produces this document,
6 saying: well, I anticipated this question, that will
7 help you to understand the answer.
8 So perhaps it is — obviously, I think it is open to
9 Mr Lord to stop him there but, in my submission, it
10 should be open to me in re-examination to ask
11 Mr Bromley-Martin simply to take you through this
12 document and explain what his answer was when Mr Lord
13 cut him short. It’s simply an aid to understanding,
14 rather than a document, so it shouldn’t be treated as
15 a document.
16 So in a way, perhaps on a formal view the evidence
17 will be Mr Bromley-Martin’s answers, but it’s perfectly
18 appropriate for him, really, to read it, and to explain
19 each heading, and then what is really the benefit of
20 excluding the actual piece of paper, except that it will
21 be more confusing and more difficult to unravel what he
22 says.
23 MR JUSTICE HILDYARD: Well, Mr Lord, I quite take your point
24 that, if viewed as supplementary evidence, it may — and
25 I have not looked at it myself — lack the underpinnings
1 deal with it, so I will leave it on that basis, but I
2 take your Lordship’s point.
3 MR JUSTICE HILDYARD: In any event, it will go to weight.
4 MR LORD: I understand that, my Lord. I am happy on that
5 basis.
6 Thank you, my Lord, sorry to take some time.
7 Sorry, Mr Bromley-Martin, sorry for that diversion,
8 sorry about that, I apologise.
9 Mr Bromley-Martin, I wanted to ask you, please,
10 about your projection of profitability for the project.
11 In paragraph 18 of your witness statement on {C1/3/3} —
12 A. Mm hmm.
13 Q. — you make the point that this, in the event, was
14 intended to be a ringfenced project; can you see that?
15 A. Yes.
16 Q. And you say that originally it was thought that the
17 project would be funded at group level; can you see
18 that?
19 A. Mm hmm.
20 Q. Would it be fair to say that because of the leverage or
21 the borrowing, or the debt burden of the OMG group, it
22 was acknowledged that there was a better chance of
23 raising money on this non-recourse ringfenced approach
24 looking only at the Western Terminal asset and its
25 development?
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1 A. Yes, if you look at the sheet, the status of lenders 1 aware of that, and they build that into their equations
2 discussions — 2 and it is built into the cash flow of the business and
3 Q. Yes. 3 part of the funding requirement.
4 A. — you will see that we were talking to one or two 4 Q. If we go to the September 2008 model, could we have
5 equity suppliers, including IFC, for that very reason. 5 {D74/1070.1/1}, please. Again, if we have the summary,
6 Q. Yes. So when you have a ringfenced, non-recourse 6 please. That’s it. Again, same figures, really, if we
7 project like this, the idea, isn’t it, is that it will 7 look at the interest charges and take those into
8 be a sort of self-financing business; that’s the idea, 8 account, it’s right, isn’t it, that on
9 isn’t it? 9 the September 2008 model, this business was going to
10 A. Well, I think more than that, actually. It means 10 make a loss in 2008, wasn’t it, minus 12 million; can
11 there’s no other assets pledged against that. 11 you see that?
12 Q. So you are looking at it as a sort of standalone 12 A. Yes.
13 business proposition, aren’t you? 13 Q. And you agree?
14 A. Absolutely. 14 A. Yes.
15 Q. If we could look at your modelling, please, sorry to go 15 Q. And it was going to make a loss, wasn’t it, in 2009 of
16 back to that. If you could have a look at the July 16 minus 9 million?
17 model — sorry, my Lord, I will arrange to have the 17 A. Yes.
18 summary and the assumptions copied because it is 18 Q. And 2010 was minus 11 million?
19 easier — from the spreadsheet, but {D55/944.1/1}, 19 A. Yes. I’m not sure what your …
20 please. That’s very kind, thank you. Could we have the 20 Q. And then if you could slide along the page, please —
21 summary, please, pressed? 21 could you slide along? There was a loss, wasn’t there,
22 Mr Bromley-Martin, I think this is the July 2008 22 in 2011 as well once interest was taken into account?
23 model. 23 A. Mm hmm.
24 A. Mm hmm. 24 Q. So this ringfenced business only became profitable once
25 Q. And it is right, isn’t it, that the first year of 25 the interest was taken into account in the fifth year on
133 135
1 the project was going to be 2008, originally? 1 this September 2008 model?
2 A. Mm hmm. Yes. 2 A. That is not unusual for an infrastructure project of
3 Q. And you predicted a trading profit of $1.8 million, but 3 this kind.
4 if one were to factor in the interest charge, so the 4 Q. But it is yes, isn’t it, Mr Bromley-Martin, in answer to
5 cost of servicing the debt that was going to be taken on 5 the question?
6 to finance the project — 6 A. Sorry, the question was is it making a loss in those
7 A. Yes. 7 four years: Yes.
8 Q. — there was going to be a loss of US $11.849 million? 8 Q. And if we go in your witness statement, please — sorry,
9 A. Yes. 9 I want to deal with the borrowing first. Can I ask you
10 Q. And it’s right, isn’t it, for 2009, the same analysis, 10 this: would you agree that a crucial factor in
11 that the trading profit was 21 million on this 11 the viability of a business is the level of borrowing or
12 prediction, but interest charges were US $26.25 million, 12 gearing in it?
13 and once you had taken into account the interest cost, 13 A. Yes.
14 that would leave a profit, or rather a loss, of 14 Q. And whether that level of debt is serviceable by that
15 US $5 million? 15 business?
16 A. Correct. 16 A. Correct.
17 Q. So in those first two years, how would this business 17 Q. And if we look in your witness statement at {C1/3/3},
18 have survived, and would it only have survived by not 18 please.
19 accounting for depreciation? How would this business, 19 A. Mm hmm.
20 if you like, this ringfenced business, be able to keep 20 Q. In paragraph 18.
21 afloat given that it was premised on borrowing money 21 A. Yes.
22 that would generate the interest charges that we see 22 Q. You are, really, there — I think you have accepted this
23 there? 23 already — referring to the fact, aren’t you, that it
24 A. Basically, there is a concept referred to as IDC, 24 became appreciated by you during the course of this work
25 interest during construction, and the banks are fully 25 for OMG, that OMG was already heavily over borrowed,
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1 wasn’t it, as a group?
2 A. Yes. But remember that 80 million of the debt was the
3 offer to repay that debt.
4 Q. But you would agree that it was already a heavily over
5 borrowed group, wasn’t it, at this time, mid-2008?
6 A. There was, I think, practically every asset had been
7 pledged, yes.
8 Q. And that’s why there was a move to this non-recourse
9 project financing model, wasn’t it?
10 A. It was an option, yes.
11 Q. To try to isolate the — if you like, to isolate the
12 viability of the Western Terminal project from
13 a lender’s concern about the leverage in other group
14 companies?
15 A. Yes, but the leverage, as I just said, 80 million of
16 that 300 million was destined to repay that debt off.
17 Q. We will come to that, Mr Bromley-Martin.
18 A. There was RUB 4 billion.
19 Q. Just wait for the question, because we will come to
20 that.
21 A. I’m just saying, you asked me a question and I’m just
22 saying that 80 million would have paid off the
23 outstanding debt, to my understanding.
24 Q. Do you agree that at the time you were involved in
25 the Western Terminal project, the banks that you were
1 my suggestion that around the time of
2 the Western Terminal project in September 2008 you were
3 aware of concerns by banks as to the level of gearing of
4 the OMG group; do you want to reconsider that answer in
5 the light of this e-mail which may have refreshed your
6 memory?
7 A. I have said it was clearly an issue for them, but this
8 250 million is not the same loan as we are talking
9 about.
10 Q. No, I see that, Mr Bromley-Martin, but that wasn’t the
11 point, was it. There’s a reference here to the existing
12 gearing concerns?
13 A. Of EBRD.
14 Q. Yes.
15 A. EBRD was Vyborg, not Western.
16 Q. Yes, but they are talking about the OMG group of
17 companies, aren’t they?
18 A. Yes, but you are talking about a completely different
19 project here.
20 Q. And other banks, Mr —
21 A. EBRD and other banks were being touted — the Vyborg
22 project, which has nothing to do with us.
23 Q. Mr Bromley-Martin, your job here isn’t to argue a case
24 for Dr Arkhangelsky, it is just to answer the questions
25 to the best —
137 139
1 speaking to had concerns about the level of gearing 1 A. No, no, I’m just saying, EBRD were thinking of lending
2 within the OMG group? 2 to Vyborg, and EBRD may have expressed concerns to their
3 A. As I said just now, they were seeking clarification of 3 banks because they were going to syndicate the 250, or
4 it. They didn’t actually, not to my knowledge did they 4 whatever the loan was, I have forgotten what it is now,
5 actually express concern. There clearly was an issue 5 they were going to syndicate that out and they were
6 for them. 6 talking to different banks that we were talking to. So
7 Q. Could you be shown {D67/1053.2/2}, please. This is 7 the two banks may have conceivably overlapped but by and
8 an e-mail from Mr Keith Parker of OMG — 8 large they were different banks, not the banks we were
9 A. Mm hmm. 9 talking to.
10 Q. — to somebody, I think, at the EBRD on 10 Q. I suggest to you that the OMG group could not support
11 4 September 2008. 11 any new borrowing at that time. It was already over
12 A. Yes. 12 borrowed, wasn’t it?
13 Q. You are copied into this e-mail, aren’t you, 13 A. As I said, the $80 million of that 300 million was to
14 Mr Bromley-Martin? 14 replace the existing RUB 4.8 billion of debt and it
15 A. So it would appear, yes. 15 would have been actually far better able to sustain
16 Q. And you can see towards the foot of the page — well, 16 their borrowing at that level because the Russian banks,
17 remind yourself what’s being discussed, but it is really 17 I think from memory, were charging between 20 and
18 the second to last big paragraph where Mr Parker says 18 22 per cent, whereas the BNP loan would have been 12 per
19 this to EBRD. He says: 19 cent, so it would have saved — I think somewhere
20 «If the size of loan is to be $250 million, then 20 I remember reading it would save $50,000 a day in
21 this will obviously increase the gearing ratio of OMG 21 interest charges alone to have refinanced this debt.
22 group of companies, and the existing gearing concerns of 22 Q. If we go to paragraph 25 of your witness statement at
23 EBRD (and other banks) will be increased as well.» 23 {C1/3/5}, you pick up this topic of the financing effect
24 So, Mr Bromley-Martin, I’m slightly surprised by 24 of the proposed Western Terminal project and you
25 your answer two minutes ago, I think you were querying 25 describe it in paragraph 25, and what you say in
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1 paragraph 25 —
2 A. Mm hmm.
3 Q. — is that:
4 «In terms of cost, in my opinion, US $300 million to
5 complete the development works, which Vitaly had
6 planned, was significantly more than would have been
7 needed.»
8 You thought it would need to be 220 million, and
9 then you say:
10 «I understood from Vitaly and Keith that the Group
11 was trying to raise the additional finance that it
12 needed for development works at Western to allow it to
13 refinance existing Group short term debt.»
14 Can you see that?
15 A. Which is what I’ve just referred to, yes.
16 Q. You can see that, can you?
17 A. So Vitaly asked us to raise 300 million, yes, and when
18 we got into it we said: hold on, you only need 220. He
19 said: that is because the other 80 is going to be used
20 to refinance our existing high interest Russian debt.
21 Q. So you understood that the Western Terminal project was
22 sought in part by Dr Arkhangelsky in order to be able to
23 refinance OMG group debt more generally; is that right?
24 A. Exactly.
25 Q. Now, I’m slightly puzzled by this evidence, because this
1 lender that 90 million of the 300 was going to be used
2 to repay short term debt used to acquire the terminal —
3 that means Western Terminal — in 2007, doesn’t it?
4 Yes?
5 A. That would be the implication.
6 Q. So what a potential lender is being told in this
7 document is that 300 million is going to be raised,
8 90 million is going to be used to pay off the
9 acquisition cost for the asset, leaving the balance to
10 be used for development of the asset; that’s a fair
11 reading of it, isn’t it?
12 A. Mm hmm, indeed.
13 Q. Now, we know — the reader wasn’t being told, were they,
14 that the 90 million was going to be used for general OMG
15 group refinancing, were they? Were they?
16 A. Well, short term debt, if you want to be absolutely
17 correct, I should have probably … which includes the
18 cost acquired, the use to acquire the terminal.
19 Q. No, but Mr Bromley-Martin, I’m sure you’ve got the
20 point, that if you are a lender, lenders want to know
21 the purpose for which the money is going to be loaned,
22 don’t they?
23 A. Mm hmm.
24 Q. They don’t want to lend 300 million and find that 200 is
25 going on Western Terminal and 100 is going on the
141 143
1 was said to be a ringfenced bit of project finance,
2 wasn’t it? We’ve established that this afternoon,
3 Mr Bromley-Martin, haven’t we?
4 A. We haven’t agreed which entities are actually going to
5 end up taking the debt.
6 Q. We are going to come onto that, because can we look at
7 the funding requirement. Can we look at {D52/889/11},
8 please, which is in the Western Terminal bundle behind
9 tab 10, because there is a section in your information
10 memorandum of July which picks up this point — it is
11 page 10 — sorry, it is page 11, sorry, «Funding
12 requirement»; can you see that?
13 A. Yes.
14 Q. «OMG are therefore seeking to raise up to $300 million
15 in long term debt to fund the upgrade of the terminal
16 and to repay $90 million of short term debt [wait for
17 it] used to acquire the terminal in 2007.»
18 Now, if you look a bit further down, you can see
19 «Gearing». Can you see that, Mr Bromley-Martin?
20 A. Mm hmm.
21 Q. «The parent company has already put in US $140 million
22 of equity into the facility.»
23 A. Mm hmm.
24 Q. Now, taking a step back, the first point is this: this
25 information memorandum was representing to a potential
1 greyhounds or a horse race, do they? They want to know
2 where their money is going, don’t they?
3 A. Mm hmm.
4 Q. Is that a yes?
5 A. Yes.
6 Q. And what they were being told here was really: this is
7 going to be a ringfenced project, we are going to borrow
8 300, we are going to use 90 to pay down the acquisition
9 borrowing and we are going to have the balance to
10 develop the asset. That’s what they are being told,
11 aren’t they?
12 A. Exactly.
13 Q. And you see, if what was going to happen here was that
14 Dr Arkhangelsky was going to use this loan to refinance
15 OMG group debt more generally, that would be to break
16 down the ringfencing of this project, wouldn’t it?
17 A. No.
18 Q. Because what’s happening is he is borrowing money, isn’t
19 he, in relation to the Western Terminal, that he is
20 really going to use to refinance non Western Terminal
21 debts of other OMG companies?
22 A. As I said, this is just a sort of taster.
23 An information memorandum of this kind is a taster.
24 There is a huge negotiation we would have had to have
25 taken on to finalise which entity would have borrowed
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1 what, yes?
2 Q. Yes.
3 A. Now, the 90 million to refinance the OMG was
4 a completely different risk profile to the 200 million
5 required to refinance the development of
6 Western Terminal.
7 Q. You can see, Mr Bromley-Martin, that if a lender were to
8 be told that 90 million was actually going to go to
9 refinance group debt, when the acquisition cost of
10 the asset was only $40 million, most lenders would be
11 concerned at that misinformation, wouldn’t they?
12 A. Well, no, we made it quite clear that the 90 million was
13 going into the OMG pot as a whole.
14 Q. No, but you didn’t make it quite clear, because you said
15 «Used to acquire the terminal in 2007».
16 You are identifying, you are really vouching, you
17 are saying that there is a particular acquisition debt
18 or debts, possibly in other companies, I accept that,
19 but the key point is you are telling the lender that you
20 want 300 million, effectively to finance the cost of
21 buying the asset, and the cost of developing it. Isn’t
22 that what that paragraph is telling the reader?
23 A. It’s telling the reader that 200 million will be backed
24 by the Western Terminal project and the 90 would be
25 backed by other assets in the OMG group.
1 What were you told and what figure did you have in
2 mind, Mr Bromley-Martin?
3 A. The 220 is the figure I had in mind.
4 Q. And when you wrote this paragraph —
5 A. When I wrote this paragraph it was, what, seven years
6 later, and clearly I was mistaken as to the situation,
7 because, if you remember, I haven’t been associated with
8 this case up until when I was asked to make this
9 statement last October or November.
10 Q. Because paragraph 10 implies that that’s information you
11 were given at the time you were involved with OMG back
12 in 2008, doesn’t it?
13 A. It does rather, I must admit, yes.
14 Q. And if you go to {C1/3/7} I think you repeat the point.
15 Can you see the paragraph beginning:
16 «However, at the time Vitaly had acquired
17 Western Terminal LLC the terminal was in a poor state.
18 It had cost him very little…»
19 Can you see that?
20 A. What paragraph are you on?
21 Q. Paragraph 36:
22 «It had cost him very little and relative to its
23 acquisition price I recall it was generating quite a lot
24 of turnover from timber.»
25 Are you saying that when you wrote this statement
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1 Q. You say in your witness statement that, I think —
2 I don’t want to misquote you — you say in your witness
3 statement something about the cost. Yes, in
4 paragraph 10, no need to have it up, I don’t think, you
5 said {C1/3/3}:
6 «I understood from Vitaly and Keith that the Group
7 had acquired Western in 2007 when it purchased
8 Western Terminal LLC, the company which owned the land
9 and property at the terminal, and that it had cost
10 relatively little».
11 I wonder from that, Mr Bromley-Martin, were you led
12 to believe, or were you given some idea of the rough
13 acquisition cost of Western Terminal by Dr Arkhangelsky
14 and Mr Parker?
15 A. Yes, because it was in that list of questions that we
16 referred to this morning.
17 Q. But that was 220 million?
18 A. Yes.
19 Q. Are you saying that you thought that that was relatively
20 little for a lot of mud by a quay?
21 A. No.
22 Q. No. So what did you mean? Can we have paragraph 10 up
23 and you can tell his Lordship what you meant by that
24 evidence. {C1/3/3}, and you can read that paragraph 10
25 and tell his Lordship what you meant by that.
1 you thought that the acquisition cost of Western
2 Terminal was $220 million or not?
3 A. To be honest with you, as it was eight years apart,
4 I was asked to make a statement and I did this from
5 memory, I hadn’t really gone through and read everything
6 through, but now I have had a chance to do that in order
7 to prepare for today, I recognise that I was mistaken in
8 my belief.
9 Q. Going back to {D52/889/11}, please, which is your final
10 information memorandum for these banks; we have seen
11 now, haven’t we, Mr Bromley-Martin, that the acquisition
12 cost was round about US $40 million?
13 A. So the evidence you put before me this morning?
14 Q. Yes.
15 A. Yes.
16 Q. Did you take some steps to ascertain the accuracy of
17 a statement in this information memorandum that
18 US $90 million was going to be borrowed to repay short
19 term debt used to acquire the terminal in 2007?
20 A. Well, as I said to you five minutes ago, that was
21 probably badly worded, in the sense that 90 million was
22 partially going to repay the debt taken out to pay for
23 the terminal.
24 Q. If you look a bit further on under «Gearing», the reader
25 is told this, isn’t he:
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1 «The parent company has already put in
2 US $140 million of equity into the facility.»
3 Can you see that?
4 A. Mm hmm.
5 Q. What this document is telling the Bank,
6 Mr Bromley-Martin, I suggest, is that the OMG group, or,
7 if you like, the borrowing group, has already sunk
8 $140 million of its own money into this asset; that’s
9 right, isn’t it? Isn’t it, Mr Bromley-Martin?
10 A. Well, on the basis they borrowed 60 million to buy the
11 facility and they told us that the total cost was 220,
12 it was sort of within the bounds of logic that,
13 therefore, the group from its own resources had put
14 140 million in.
15 Q. Yes, I wasn’t asking that. Can you listen to
16 the question: it is right, isn’t it, that what this
17 sentence is telling a bank is that the parent company,
18 so that’s OMGP, or an OMG group company, has put in
19 $140 million of its own money into the —
20 A. That was my understanding, yes.
21 Q. And we have seen from the acquisition cost, it doesn’t
22 look as if that was correct, does it?
23 A. No.
24 Q. What was the basis — I think you may have answered it
25 just now, but what was the basis for your putting this
1 a western name, as it were, to value the property as
2 part of the due diligence exercise.
3 Q. And it’s likely, isn’t it, Mr Bromley-Martin, that any
4 lender that had received this information memorandum and
5 had been told that 140 million of equity had been sunk
6 into Western Terminal by the OMG parent company, which
7 lender then discovered that that was untrue and that, in
8 fact, the asset had cost 40 million and therefore, no
9 such equity — and, in fact, it had been raised by
10 borrowed funds, that lender was likely not to want to be
11 involved with this project any further; do you agree?
12 A. Well, we discussed this this morning. My view is that
13 the overwhelming driver for the debt would have been the
14 cash flow rather than the value — the purchase price of
15 the property itself, the freehold itself.
16 Q. It’s right, isn’t it, that any lender was going to do
17 its own due diligence; it wouldn’t rely on OMG’s?
18 A. Certainly not. Certainly not.
19 Q. They would do their own work, wouldn’t they?
20 A. Absolutely, or they would hire in KPMG or E&Y or
21 somebody like that to do it, plus their own lawyers who
22 would have checked the title, property, et cetera.
23 MR JUSTICE HILDYARD: Sorry, I didn’t fully understand your
24 answer to Mr Lord’s question that if a lender had
25 discovered that there had been no, or no substantial
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1 sentence into this document, can you tell his Lordship,
2 please?
3 A. Because clearly I was trying to show that there was
4 asset-backing to the debt.
5 Q. And to show, presumably, to a lender, that the owner of
6 the asset in respect of which money was being sought had
7 sunk a lot of its own capital in as a sign of good faith
8 and earnest and seriousness and so on?
9 A. Indeed.
10 Q. And that’s information that, presumably, came from OMG
11 or Dr Arkhangelsky?
12 A. Yes.
13 Q. And do you agree that if his Lordship finds that the
14 Western Terminal cost 40 million, that looks like
15 a misleading statement, doesn’t it?
16 A. It does, indeed.
17 Q. Yes, thank you. It’s likely, isn’t it, that upon any
18 sort of due diligence, a lender was going to establish
19 that that statement about the equity put in was wrong?
20 It’s likely?
21 A. It was something that was clearly causing us concern,
22 because if you read — I can’t remember where abouts,
23 I think it’s in one of the e-mails, I was pressing
24 Vitaly and Keith that we should get a western — with no
25 disrespect to Russian companies, obviously, but
1 equity contributed, except in the sense that some money
2 had been contributed which was, itself, borrowed, would
3 that lender, when he knew the truth, have — could one
4 realistically expect such a lender to continue with the
5 project? I didn’t follow your answer on that. I am not
6 sure you answered it.
7 A. I would say that it would have taken all my persuasive
8 powers to have kept him on the case, indeed. It would
9 have been very, very difficult, but not impossible.
10 MR JUSTICE HILDYARD: It’s an unattractive phrase,
11 especially amongst US bankers, the notion of skin in
12 the game is usually important to investors.
13 A. Exactly.
14 MR JUSTICE HILDYARD: And if you are told there is
15 80 million-worth and then you are told on the next day:
16 actually, there is substantially none, are you not
17 a little put off?
18 A. Your Lordship, I wonder if I could just split hairs for
19 a second. You used the word «investors». I don’t know
20 whether that was a generic term for anybody providing —
21 MR JUSTICE HILDYARD: I’m sorry, banking, secure creditor.
22 A. An investor, an equity investor, it would have been
23 absolutely crucial, absolutely sir, because then there
24 would have been a negotiation on a valuation and
25 everything else.
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1 A lender, a bank lending money, is not interested
2 except for the use of sort of Armageddon security, if
3 I can call it that.
4 MR JUSTICE HILDYARD: I wonder if that’s right, actually,
5 I’m so sorry to be rude, but an investment bank, you
6 have explained carefully to us, is not so much looking
7 for its security at the value of the property, but at
8 the return potentiality of the enterprise.
9 A. Exactly, sir.
10 MR JUSTICE HILDYARD: To that extent an investment bank and
11 investor, one might think, are in rather similar
12 positions, because they are both hoping for a return
13 from the conduct of the business of the entity.
14 A. Now, what is very confusing is the term «investment
15 banker», sir, because if you go to Goldman Sachs, one
16 department will do the equity and another department
17 will do the debt. So, again, we need to be careful to
18 distinguish between the two animals.
19 MR JUSTICE HILDYARD: Well, I understand that, and I don’t
20 want to get too philosophical. It just seemed to me
21 that you were making clear — or so I had understood you
22 were making clear, that the banks were being invited to
23 participate not so much on the footing of the capital
24 value of the project, but its income potential.
25 A. 100 per cent. You are 100 per cent right there, sir.
1 are talking about debt here, and I say debt would look
2 to the cash flow of the business rather than whatever
3 was paid for the freehold.
4 MR LORD: But, Mr Bromley-Martin, isn’t the point of telling
5 the bank, the potential lender, that a parent company
6 has put $140 million of equity into it, you are telling
7 the lender that the owner, effectively, the borrower,
8 has put its own money at risk and has sunk its own —
9 and believes in the business. It is a world of
10 difference if you say: I would like to borrow
11 $300 million please, and I have borrowed a few quid to
12 buy it, and I’m not going to put any of my own money in,
13 but I would like your money, Goldman Sachs. That’s one
14 position, and the other end is: I’ve put in $140 million
15 of my own money which I will lose if this project, which
16 I want finance for, doesn’t work out. Can you not see,
17 Mr Bromley-Martin, that —
18 A. Can I make two points to answer you? First of all, yes,
19 I agree, this was an attempt to reassure would-be
20 lenders that there was some underlying thing based on
21 the numbers that we had been given.
22 Now, the second point I would like to make is, and
23 I am jumping here, if you will forgive me, to Vyborg and
24 EBRD, and I know you have the term sheet from EBRD, and
25 if you look at the term sheet for the EBRD loan, for
153
1 MR JUSTICE HILDYARD: That is what you told me, as I had
2 understood it.
3 A. Yes, correct, sir.
4 MR JUSTICE HILDYARD: And therefore, one might think that
5 skin in the game in the sense of someone actually
6 putting themselves at risk in order to obtain the upside
7 is rather an important factor, but if I am wrong on
8 that, you must tell me.
9 A. Sorry, just say that again, sir. I lost you in
10 the middle there.
11 MR JUSTICE HILDYARD: Where the prospect of repayment is
12 from the performance of the company, so that you are
13 reliant on the potential of the company, it is of very
14 considerable reassurance that the owners or others of
15 the company, have put skin in the game, because then you
16 feel you are on a joint game, rather than being suckered
17 in to something which might not return. Maybe I have
18 misunderstood.
19 A. A lender doesn’t necessarily look for skin in the game;
20 an investor would do.
21 MR JUSTICE HILDYARD: All right.
22 A. So if you are an entrepreneur and you want to start up,
23 as I have done, several businesses, they are looking to
24 me and the management team I’m with to put in 25 or
25 30 per cent of the funding, yes, but that is equity. We
155
1 Vyborg, is there any mention of any equity requirement:
2 no sir.
3 Q. That’s a sort of clever answer. Can we —
4 A. No, no, no, because the term sheet is a legal document
5 which forms the basis of the debt provision.
6 Q. Looking at this page, funding requirement, what a lender
7 is being told is that the asset was bought for
8 $220 million, and we now know it was 40. The lender is
9 also being told that the short term debt that’s going to
10 be repaid that was used to buy the asset was $80 million
11 to $90 million, again, untrue, because the asset only
12 cost 40 in the first place, so that’s untrue, and
13 thirdly the lender is being told that the owner, the
14 parent company has put $140 million of its own money on
15 top — wait a minute — on top into this facility which,
16 again, looks to be untrue. Now, are you suggesting that
17 a lender that finds out about those untruths is not
18 going to be concerned at the moral hazard of lending to
19 this particular borrower?
20 A. It would be a considerable embarrassment, as I said.
21 Some banks might easily walk away, but I don’t think
22 it’s necessarily a deal breaker for every bank. So
23 mea culpa that I put it in there, that was wrong, now
24 that you have given me different numbers, but it was to
25 seek to reassure the banks that there was an underlying
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1 asset there.
2 Q. Mr Bromley-Martin, you know that’s not right, because —
3 we will come to your witness statement on this point.
4 You know, Mr Bromley-Martin, that if you are trying to
5 borrow money from a bank, the bank has to trust you,
6 hasn’t it? It has to trust that you are an honest
7 borrower; that’s right, isn’t it?
8 A. In the main.
9 Q. In the main. And banks would be very concerned at
10 a borrower that told them one thing and was going to do
11 another, wouldn’t they?
12 A. You are taking a very prurient(?) view of bankers, if
13 you don’t mind me saying so. There are guys, there are
14 individuals working in these banks whose job it is to
15 lend money and they all behave like lemmings, and at
16 that stage in 2008 they were falling over themselves to
17 lend money to infrastructure projects in Russia.
18 Q. And do you think that’s an accurate opinion after
19 15 September 2008?
20 A. I thought we were talking about July.
21 Q. Mr Bromley-Martin, you are just trying to be clever
22 here, and —
23 A. No, no, I am not. You keep quizzing me on the basis of
24 six years of hindsight, and sorry, that wasn’t the
25 situation that was facing us in July 2008.
1 A. Yes.
2 Q. «It is an essential element in executing a fundraising
3 mandate to verify every element of information that goes
4 into an IM. Any potential investor or lender will
5 undertake detailed ‘Due Diligence’ as part of their
6 evaluation, and therefore, not least to safeguard our
7 own professional reputation, it is essential that no
8 ‘skeletons’ are found during that process. We therefore
9 require our clients to provide us with justification for
10 all statements which would include, inter alia,
11 an account by account reconciliation of the balance
12 sheet, proof of ownership of Intellectual Property or
13 real estate, as well as comfort with market
14 projections.»
15 Now, you pick up that theme again,
16 Mr Bromley-Martin, in paragraph 33 on {C1/3/6}:
17 «At Oxus we made every possible effort to have
18 a full reconciliation of each account within a balance
19 sheet agreed with the client before issuing an
20 information memorandum to any fund or bank. If we went
21 to the market without doing so, we would have put our
22 professional reputation at risk and, more to the point,
23 fund and bank managers would not have considered us if
24 we had presented an ill-conceived or unrealistic
25 proposal.»
157
1 Q. You picked July because you know it predates the Lehman
2 Brothers collapse.
3 A. Even after that they were still trying to lend money.
4 Q. Try again. After the Lehman Brothers collapse on
5 15 September 2008, it is right, isn’t it, that the world
6 of lending changed?
7 A. Mm hmm.
8 Q. Yes?
9 A. Yes.
10 Q. And —
11 A. Not to start with, but it gathered pace, I will agree.
12 Q. And lenders overnight became much more rigorous in
13 lending their money, didn’t they? There was
14 a sea-change, wasn’t there, after that earthquake,
15 wasn’t there?
16 A. Not — no, actually, I’m going to disagree with you, and
17 I’ll tell you for why, and that is Emerging Capital
18 Partners backed us to buy an operating port in
19 Equatorial Guinea and were still negotiating the term
20 sheet with us in May 2009.
21 Q. Do you want to go in your witness statement at {C1/3/4}
22 and could you look at paragraph 22 and just read that to
23 yourself. Paragraph 22, {C1/3/4}.
24 A. That’s exactly what I said this morning, isn’t it?
25 Q. Yes, these are your words.
159
1 So Mr Bromley-Martin, your evidence this afternoon
2 to his Lordship, I put to you is untrue: if
3 an information memorandum was as materially inaccurate
4 as we have identified, I put to you that would have been
5 fatal to the credibility of this project in the eyes of
6 any reputable lender, either before 15 September or
7 after 15 September 2008. The idea that you could get
8 away with those sorts of untruths and bounce back and
9 say: no hard feelings, I suggest, Mr Bromley-Martin,
10 that that is simply not true. What do you want to say
11 to that?
12 A. What I want to say is that you — as a broker of
13 the variety that we are, you have to tread a very narrow
14 path between what your client wants you to do and what
15 you know is acceptable to the banks.
16 Now, we were therefore pressing for the IFRS
17 accounts, so that we could do this justification account
18 by account, and we had to get — we were being pressed
19 to get the information memorandum out in order to try
20 and start the process, because clearly OMG needed the
21 funding, if nothing else.
22 Q. But if we —
23 A. And, therefore, we perhaps strayed a little too eagerly
24 into issuing an IM that wasn’t, probably, watertight.
25 Q. Mr Bromley-Martin, I’m sorry to go back to this, we are
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1 not talking about here, are we, really, innocent
2 mistakes in a possible lender’s eyes? We are not really
3 sort of talking about something: well, it depends how
4 you look at it, sort of thing. Or: it’s a bit
5 subjective. We are talking about some very, very big
6 and concrete untruths, aren’t we? The acquisition cost
7 of the asset, 40 versus 220; the short term debt, 80 to
8 90 compared with whatever, can’t be more than 40, and
9 the equity from the owner, 140 compared with nothing.
10 We are not talking about: oh, well, I should have
11 mentioned that and I should have mentioned this, but
12 really it’s all still all right. It’s not that sort of
13 untruth, is it, Mr Bromley-Martin? It’s nuclear, it’s
14 apocalyptical, isn’t it, in terms of the credibility of
15 this project for any lender?
16 A. To be honest with you, no more than probably one,
17 conceivably two, bankers would have gone into it in such
18 detail that they would have noticed that paragraph.
19 What they were far more interested in was in the
20 financial model. So I appreciate that it was
21 an unfortunate statement to put in there and it was
22 clearly seeking to give them greater comfort, but
23 I suspect that it would have been lost in
24 the undergrowth, if you know what I mean.
25 Q. What does that mean, Mr Bromley-Martin? Does that mean
1 believe it is, to use your word,»nuclear». It is not
2 assured destruction, put it that way.
3 Q. I think you said earlier today that you don’t, I think,
4 speak or read Russian; is that right?
5 A. Mm hmm.
6 Q. Is that yes, for the transcript?
7 A. Sorry, I do not speak Russian, no.
8 Q. Did you have any staff working for you in relation to
9 the Western Terminal project who did speak or read
10 Russian?
11 A. We were relying upon Clydes for that. Are you referring
12 to translation of legal documents?
13 Q. No, sorry, Mr Bromley-Martin, was the question unclear:
14 did you have anybody working for you on your team, or
15 for you, within Oxus, who read or spoke Russian?
16 A. No.
17 Q. So would it be fair to say that were that you were,
18 really, in large measure, reliant upon Dr Arkhangelsky
19 and OMG for the information that you got?
20 A. That’s a different question. You asked me about
21 translation, now you are asking me about information.
22 Q. Yes.
23 A. Translation, as I say, probably I suspect 75 per cent of
24 the documents that were in Russian got translated by
25 Keith or someone for us, and Clydes did probably the
161 163
1 that it would have been covered up afterwards and you
2 would hope people wouldn’t notice the untruths; is that
3 what you are saying?
4 A. No, no, because it clearly would have come out in
5 the due diligence because they would clearly require a
6 valuation of the freehold property, which is what I was
7 trying — which I was pressing Keith and Vitaly to do,
8 of their own volition.
9 Q. So suddenly Goldman Sachs, who spent some time getting
10 involved in this project, they sit down with their
11 lawyers and their people —
12 A. It wouldn’t have got that far, I explained that this
13 morning.
14 Q. No, but Mr Bromley-Martin, you know the point I make,
15 and they sit down with you at Oxus and they assume that
16 there are no skeletons here because you have done this
17 professional job that you say you have done and they
18 think that you will have done a proper job. Then they
19 find out there are all these untruths or inaccuracies in
20 the information memorandum. Are you suggesting that
21 they would have said: well, don’t worry, let’s look at
22 your model, let’s carry on? Is that an honest answer,
23 Mr Bromley-Martin?
24 A. I was saying that there is a grave danger that it might
25 have stopped the procedures — discussions, but I don’t
1 rest. Any legal documents we got, Clydes — because
2 clearly their reputation was on the line too, so they
3 were keen to have any legal documents translated.
4 Q. And it is right, isn’t it, Mr Bromley-Martin, that if
5 a bank learnt that money was being borrowed for
6 a ringfenced Western Terminal project that was going, in
7 fact, to be used to refinance OMG companies more
8 generally, that would have concerned them because that
9 would bring into play the question of the group’s
10 leverage, wouldn’t it? You would have started to
11 contaminate the ringfenced project, wouldn’t you?
12 A. Not necessarily, because, as I say, you almost certainly
13 have different lending agreements with different
14 entities in the group such that the Western Terminal
15 would merely have access to 200 million of potential
16 loans and not 300.
17 Q. And I suggest that if a lender had learnt that OMG group
18 companies — if a lender in this situation had learnt
19 that an OMG group company was borrowing money at about
20 this time, autumn 2008, to pay interest bills, that
21 would have been likely to cause concern for that lender;
22 do you agree? Borrowing to pay back interest is a red
23 flag for a bank, isn’t it, by and large?
24 A. Sorry, you are telling me that who was borrowing money
25 to pay what debt?
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1 Q. I’m just assuming — can you just assume for one minute,
2 that if in fact — do you agree with the general
3 proposition that most banks or lenders are concerned if
4 a borrower or potential borrower is having to borrow
5 money in order to pay interest on existing borrowed
6 monies? Borrowed to service the interest?
7 A. It’s not unknown, because I’ve known a lot of companies
8 be in that position but —
9 Q. That wasn’t the question, Mr Bromley-Martin —
10 A. —hold on, let me finish the sentence, then I can
11 answer the question.
12 Q. — well you are not answering the question, the question
13 wasn’t whether you’ve known it in your long history,
14 career, it’s really whether it would be, in most cases,
15 a concern to a lender or potential lender that
16 a borrower was already borrowing to service its interest
17 payments?
18 A. It is a concern, indeed, but it happens quite a lot.
19 Q. Yes. And the concern is because that is — that can
20 often be a sign that the business is in trouble; that’s
21 right, isn’t it?
22 A. Not necessarily, it could be a start-up, as this
23 business was. For the first few years of any new
24 business, a company is always cash-negative.
25 Q. Mr Bromley-Martin, the reason it would generally be
1 say, two years, can you just assume that,
2 Mr Bromley-Martin?
3 A. Mm hmm.
4 Q. That has hundreds of millions of dollars of debt
5 group-wide, assume that.
6 A. Mm hmm.
7 Q. Then assume that OMG group companies within that group
8 structure are having to borrow money to pay interest on
9 existing debt; can you assume all that? Assume that; do
10 you understand?
11 A. Mm hmm.
12 Q. It’s right, isn’t it, that most lenders would be
13 concerned at borrowing to pay interest by that
14 particular group or company within the group?
15 A. I repeat my answer: not necessarily. Because you’ve got
16 Vyborg in start-up mode, you have Onega just beginning
17 to generate revenue, you have three new ships beginning
18 to generate revenue, you have got a chipboard plant
19 starting up, so you’ve a whole number of start-up
20 businesses.
21 Q. And I suggest, Mr Bromley-Martin, that your model showed
22 losses after interest was taken into account for either
23 the first two years or the first four years; do you
24 agree?
25 A. Indeed, yes, we ascertained that this morning.
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1 a concern to a lender is because borrowing to pay
2 interest suggests that the company at that point does
3 not have sufficient operational revenue to meet its
4 interest payments; that’s right, isn’t it?
5 A. But surely the lending bank would not do that unless
6 they had confidence that that money would ultimately be
7 repaid, so they had good reason to lend the money,
8 because they, presumably, wouldn’t have lent the money
9 unless they had ascertained that the interest would have
10 come out of the new loan.
11 Q. I’m going to ask the question again, Mr Bromley-Martin,
12 and give you one last chance to answer it, because you
13 didn’t answer the question, you really put an argument
14 in to try and justify the position. I put to you again,
15 the reason why a lender would generally be concerned if
16 a borrower or potential borrower was borrowing to pay
17 interest is because that would suggest that the borrower
18 did not have sufficient operational revenue to be able
19 to service its interest payments; do you agree?
20 A. In certain circumstances, yes; in other circumstances,
21 as I explained to you, no. It purely depends on the
22 circumstances.
23 Q. Leaving aside a start-up company, let’s assume we have
24 a great big, allegedly diversified shipping and
25 insurance and port business that’s been going for, let’s
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1 Q. And I suggest that your model proceeded on the basis of
2 unrealistic assumptions because the turnover of
3 containers per year was much too high.
4 A. I disagree with that.
5 Q. And your handling charges were also much too high.
6 A. I disagree with that.
7 Q. And once you plug in more realistic assumptions, the
8 profitability of that business gets even worse than you
9 modelled?
10 A. At 110 — THCs at $110, that the four-year, so you
11 wouldn’t go below 110 that’s even below Mr Sutcliffe’s
12 $120, so it was unlikely to go below that, isn’t it?
13 So we are talking about two years of pre-tax
14 profit — losses, or four years of pre-tax losses.
15 Worst case scenario.
16 Q. And the information memorandum that you had sent out to
17 the banks contained very serious inaccuracies, didn’t
18 it?
19 A. Serious inaccuracies? Inaccuracies, yes. I don’t think
20 serious.
21 Q. You don’t think that the inaccuracies we’ve discussed
22 should be described as serious?
23 A. Because they are not material to the debt, as I’ve
24 explained.
25 Q. And I suggest that all those problems would have been
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1 revealed on any typical due diligence by any reputable
2 lender?
3 A. Well, hopefully we would have spotted them and ironed
4 them out before we got to due diligence, that was our
5 intention.
6 Q. And that there was no real chance of OMG raising finance
7 to develop Western Terminal?
8 A. Again, I disagree. I think there was a very good chance
9 we could have done it.
10 Q. Either on your model, or on any other orthodox basis.
11 A. Well, I believe my model to be orthodox.
12 Q. If we go to paragraph 60 of your witness statement,
13 {C1/3/12}, where you say:
14 «I have no doubt that Vitaly and the Group’s plans
15 for Western Terminal could have been financed and
16 implemented, and I do believe that if the Group had paid
17 the retainer which BNP were requesting and had signed
18 the mandate letter, the financing would have almost
19 certainly gone ahead, albeit delayed by the financial
20 crisis at the time.»
21 I suggest first, Mr Bromley-Martin, that you have no
22 reliable basis to suggest that financing of the sort
23 that OMG was seeking for Western Terminal would ever
24 have been provided.
25 A. Well, we had that letter from BNP. Clearly they
1 would have calmed down enough to be able to go back and
2 pick up the pieces?
3 A. Crumbs, you are asking me to put my mind back eight
4 years.
5 Q. 2012?
6 A. No, no, no. Optimistically, third or fourth quarter of
7 2009. Pessimistically, second or third quarter of 2010.
8 Q. So realistically not until 2010. Realistically?
9 A. Taking a mid-point, January 2010 would seem a good
10 compromise.
11 Q. Yes, thank you. Could you go, please —
12 A. Can I just raise a point here. That wouldn’t
13 necessarily be to the detriment of the project schedule,
14 because we could have done the detailed design work in
15 the interim period.
16 Q. Yes.
17 A. And, therefore, actually, as soon as the financing came
18 through we could have got into the field, whereas before
19 we were going to raise the money and then do the
20 detailed engineering work and then get into the field.
21 So, actually, as I put in one of my letters to
22 Vitaly — or e-mails, should I say — you will recall
23 that I said it may not have any deleterious effect on
24 the overall schedule for the project.
25 Q. No, but you are talking about the closing of
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1 wouldn’t have entered into that if they weren’t
2 optimistic, shall we say, that they could syndicate
3 a loan out, and having been in this game for 30 years,
4 you get to understand the tell-tale signs, and if I can
5 use an American expression, you know when there’s a warm
6 and fuzzy feeling at the other end of the telephone or
7 across the meeting table, and certainly we were getting
8 very positive vibes.
9 Q. You had a warm, fuzzy feeling about the —
10 A. About their ability and desire to fund the project.
11 Q. And do you think that warm, fuzzy feeling might have
12 evaporated once a lender realised the inaccuracies in
13 what it had been told in the information memorandum?
14 Might it have cooled a bit in its warmth and fuzziness?
15 A. I’ve already said, yes, it would do.
16 Q. And I —
17 A. It wouldn’t be — I don’t believe it would have been
18 terminal.
19 Q. And your suggestion — I think you have said that the
20 financing would have been delayed by the financial
21 crisis; is that right?
22 A. Yes.
23 Q. And you have said it is difficult to say when financial
24 close would have been achieved. When do you think?
25 Some time in 2010? 2011? When do you think things
1 the financing deal, aren’t you, being sort
2 of January 2010.
3 A. Yes, but I still — by implication you are saying,
4 therefore, it won’t start generating revenue — it would
5 only start generating revenue much later. I’m saying
6 that is not the case. That was the implication in
7 your question.
8 Q. But you are talking about getting the money from the
9 banks, when you talk about closing, you are talking
10 about getting the money out from the bank, aren’t you?
11 A. Yes.
12 Q. That means that up until that point, OMG don’t have any
13 refinancing coming out of this Western Terminal project,
14 do they?
15 A. No, I mean, clearly what became apparent
16 in October 2008, that OMG didn’t have the resources to
17 continue at that stage.
18 Q. No. We are coming to that, don’t worry.
19 Could you go to paragraph 13 of your statement at
20 {C1/3/3} where you describe meeting Dr Arkhangelsky.
21 You say in the second sentence of that paragraph:
22 «Vitaly struck me as an impressive individual. He
23 seemed well-regarded and well-connected in
24 St Petersburg. He came across as an energetic
25 entrepreneur, frequently travelling to attend and give
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1 presentations about his business and the Group’s plans
2 at roadshows around the world. He was always fun to
3 work with. It seemed to me that he was a bit of a star
4 whose ascent people felt they should watch.»
5 Do you see that?
6 A. I do.
7 Q. Mr Bromley-Martin, would it be fair to say that you were
8 a little bit impressed by Dr Arkhangelsky at that time?
9 A. I was. He is a very intelligent man.
10 Q. Can I ask you, Mr Bromley-Martin, what were the fee
11 arrangements that you entered into, if any, with
12 Dr Arkhangelsky or OMG companies of any sort in relation
13 to the services that you have provided to them?
14 A. We had a retainer and a success fee.
15 Q. And when was that entered into, that arrangement? Back
16 in 2008, at the time you entered into the work?
17 A. February/March 2008, I think it was.
18 Q. And what was the retainer?
19 A. From memory, $20,000 a month, I think it was.
20 Q. And was that paid to you?
21 A. Yes.
22 Q. For how many months?
23 A. March, February — March, April, May … it must have
24 been six months.
25 Q. And what was the success fee arrangement?
1 figures, please, for turnover and profit for the OMG
2 group; can you go to {D48/829/1}. It’s in
3 the Western Terminal bundle, and it is behind divider 3
4 towards the back of that tab. You see it is the
5 questions and answers, can you see that,
6 Mr Bromley-Martin?
7 A. D43, did you say?
8 Q. {D48/829/1}. It’s the questions and answers I took you
9 to earlier.
10 A. I have the questions but not the answers for some
11 reason.
12 Q. If you could go to {D48/829/1}, if you could be helped
13 to find the page. Thank you.
14 A. There are about three different versions of it here.
15 Q. Yes, I understand.
16 MR JUSTICE HILDYARD: D48?
17 MR LORD: {D48/829/1}, it’s the penultimate entry between
18 the pink slips at the back of divider 3A, my Lord. It
19 is just before divider 4. It is the second to last
20 entry in that tab.
21 MR JUSTICE HILDYARD: I see.
22 MR LORD: I asked you, Mr Bromley-Martin, earlier today
23 about the acquisition costs, do you remember, that was
24 item 12 on the second page.
25 A. Mm hmm.
173 175
1 A. 25 per cent when we had a bona fide offer and
2 75 per cent of it when the funds were actually received.
3 Q. Do you have a copy of the retainer. You must have kept
4 that? Have you still got a copy of it?
5 A. Not with me, no.
6 Q. But you have a copy of it?
7 A. Yes.
8 Q. And there’s no reason why his Lordship couldn’t see that
9 and you couldn’t provide a copy of it?
10 A. I could provide a copy of that, yes, if it is material
11 to the case, clearly.
12 Q. I am trying to identify how was that success fee
13 calculated? What was the size of it, how much was it?
14 A. I think it was — I can’t remember now — 1 or
15 2 per cent of the money raised.
16 Q. So that would be, what, about US $6 million?
17 A. Correct.
18 Q. And is there any expectation that you might still be
19 remunerated in any circumstance to do with the matters
20 that are in dispute in this case?
21 A. There is absolutely nothing organised, outstanding or of
22 any commercial relationship with Vitaly in existence now
23 that would provide any income to me or my company.
24 Q. Can I ask you about some other points, please, on the
25 information memorandum. I want to ask you about the
1 Q. If we go to the first page, please, question number 1:
2 «What turnover and profit should be used in para 1?»
3 And the answer was:
4 «OMG turnover for 2007 is €500 million. Pre-tax
5 profit is €4.5 million.»
6 Do you have any information or idea as to the basis
7 for that answer provided by OMG to you?
8 A. Absolutely none at all, because when the IFRS came
9 through, we were struggling to find where that
10 500 million came from.
11 Q. Mm. And if we go to {D51/888/1}, one of the drafts,
12 please. So it is the draft — sorry, Mr Bromley-Martin,
13 behind tab 8 is draft 5, which is one of the final
14 drafts — not the final draft, but a later draft of
15 the memorandum. You can see D51 is behind divider 8 of
16 the bundle, at {D51/888/5} you have some figures for
17 turnover and profit in the same first paragraph of
18 the document; can you see that?
19 A. Mm hmm.
20 Q. And the figures that are in this version are
21 US $320 million for the turnover in 2007, I think that’s
22 for the group, and a pre-tax profit of US $3 million;
23 can you see that?
24 A. Mm hmm.
25 Q. Again, Mr Bromley-Martin, was that information that came
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1 to you or Oxus from OMG or Dr Arkhangelsky?
2 A. All this information came from the gentleman who replied
3 to our questions, called Daniil — I can’t pronounce his
4 surname, I am afraid, but he was the business
5 development manager, if I recall correctly.
6 Q. And given your evidence about doing a sort of line by
7 line reconciliation and how important it was to check
8 the accuracy of the figures, can his Lordship take it
9 that you did a bit of due diligence on these figures
10 before you stuck any of them into the draft of
11 the information memorandum?
12 A. Well, we clearly have to rely, hence the disclaimer at
13 the front of the information memorandum, we have to rely
14 upon information given to us by the client, and in our
15 mandate agreement is an indemnity against that
16 information.
17 Q. If we look at the last, the final version, behind
18 divider 10, please, and if you go to {D52/889/6} you can
19 see the figures change again in paragraph 1. Can you
20 see that, Mr Bromley-Martin?
21 A. Yes.
22 Q. It has turnover for the OMG group of US $88 million in
23 2007, and a pre-tax profit of US $33 million; can you
24 see that?
25 A. Mm hmm.
1 to your witness statement, and I think you said they
2 were available by September; do you remember that?
3 A. Mm hmm. Thank you.
4 Q. So they would have post-dated possibly this July version
5 of the IM that I am asking you about, but they would
6 have predated the October version, wouldn’t they?
7 A. Mm hmm.
8 Q. Could you be kind enough, please, to go to page 5. You
9 will see there is a heading «Combined income statement
10 for the year ended 31 December 2007». Can you see that?
11 A. Mm hmm.
12 Q. And you see the figures there. Can you identify for his
13 Lordship — I’ve shown you the page in the accounts and
14 I’ve shown you the information memorandum. Can you
15 explain to his Lordship what, if any, basis you think
16 that you had for putting in the figures of 88 and 33
17 into the information memorandum final draft?
18 A. Well, clearly I don’t make these numbers up myself, so
19 I clearly would have got them from various people in
20 the OMG group.
21 Q. But I just wanted you — if you could identify, you
22 know, the sort of basis, whether you did some check and
23 you —
24 A. To be honest with you, from memory, what was included in
25 these companies here, and what the 88 referred to,
177 179
1 MR JUSTICE HILDYARD: Where is this in the tabs?
2 MR LORD: It’s behind divider 10, my Lord.
3 MR JUSTICE HILDYARD: Thank you.
4 MR LORD: It’s the final version that was sent out
5 in July 2008.
6 MR JUSTICE HILDYARD: Yes.
7 MR LORD: And it is the first paragraph.
8 So the figures were 88 for turnover and 33 million
9 for profit. If you go, please, to {D52/889/9}, you will
10 see, I think, these figures appear again. Can you see
11 «OMG Key Financials», the table at the top?
12 A. Yes.
13 Q. I think you can see there you get turnover of 88.8, and
14 you get gross margin 34 — these are all millions of US
15 dollars — then you can see EBIT at the bottom, 30.4.
16 So it looks as if these figures of 88 and roughly
17 US $30 million-odd appear again in the information
18 memorandum, and they come in again, they come in
19 again — no, I think that’s …
20 Can I ask you, please, keep that page open,
21 {D52/889/9}, and could we have up on screen, please, the
22 relevant page from the 2007 accounts that I know you
23 looked at at some stage, {D15/363/5}. I think,
24 Mr Bromley-Martin, we have seen these accounts earlier
25 today; do you remember these are the ones you exhibited
1 without going away and doing some homework, I would not
2 be able to tell you if they are directly relevant
3 numbers to one another.
4 Q. Did you ever have any concern in the course of your
5 dealing with Dr Arkhangelsky or his OMG companies, that
6 the information you had been given, for example, for
7 turnover, seemed to have gone from €500 million to
8 US $320 million, to $88 million? Did you ever think to
9 yourself: gosh, I wonder how these figures can be moving
10 around in this way? Did you ever have any sort of pause
11 for thought?
12 A. I have worked for a number of entrepreneurs like Vitaly
13 in my career, and they are all prone to exaggeration,
14 and, therefore, I probably made a note at some stage in
15 my little black book and put it in in the absence of any
16 other more compelling information, which slowly
17 manifested itself and enabled me to get the
18 $88.8 million of turnover into the IM in time.
19 Q. And if we could go, please, to paragraph 10. Could you
20 go to {C1/3/3}, please.
21 A. Yes, I am there.
22 Q. You say in paragraph 12:
23 «The Group had purchased land at Onega in 2005.
24 Since then major development works had been undertaken
25 with substantial investment …»
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1 It is right, isn’t it, Mr Bromley-Martin, that you 1 My Lord, I am going to ask the witness about it but
2 were there reliant upon Dr Arkhangelsky or OMG for that 2 I see the time, I wonder if that would be a convenient
3 information: you didn’t carry out any independent 3 point for a break. I am conscious that the transcribers
4 verification of what, if any, development works had been 4 and shorthand writers have probably had a fairly
5 undertaken at Onega? 5 exacting afternoon.
6 A. Not exactly true because, as I say here, Vitaly asked me 6 MR JUSTICE HILDYARD: Yes.
7 if I would become project manager, because he said: 7 MR LORD: Thank you, my Lord.
8 you’ve clearly done this a lot before. So on one of my 8 (3.22 pm)
9 visits to Onega, I think I spent half or a complete day 9 (A short break)
10 there in absolutely spanking new facilities, beautifully 10 (3.30 pm)
11 tarmacked storage areas for the cars, and they showed me 11 MR LORD: My Lord, I trust that the copies of
12 how the system worked for customs clearance coming in 12 the spreadsheets, the summary and the assumptions for
13 from Gdansk, or wherever they — it wasn’t Gdansk where 13 the two different models which I have been taking
14 they come from, but anyway, Bremerhaven, et cetera, 14 witnesses to have got to your Lordship?
15 et cetera. 15 MR JUSTICE HILDYARD: Yes, they have, thank you.
16 So whilst I may not have had a chance, because it 16 MR LORD: It is quite hard to print them off because it is
17 all came to a grinding halt before I had a chance to do 17 a spreadsheet, so on Magnum you have to click on the
18 so, I saw with my own eyes the extent of the 18 relevant cell or page.
19 redevelopment of Onega and it was considerable. In 19 MR JUSTICE HILDYARD: That’s helpful to have that, thank
20 marked contrast to Western Terminal, I should say. 20 you.
21 Q. Yes. If we go to {C1/3/8}, please, paragraph 41, you 21 MR LORD: So Mr Bromley-Martin —
22 explain that after finalising the IM in July 2008 you 22 A. Your Lordship, could I just — I don’t understand the
23 immediately contacted potential lenders in the public 23 etiquette in court, so if I am transgressing, please
24 and private sectors; do you see? 24 forgive me.
25 A. Mm hmm. 25 Just apropos something that was discussed this
181 183
1 Q. So can his Lordship take it that that July 2008
2 information memorandum I have asked you about, that that
3 document was sent out to all these potential lenders?
4 A. Exactly.
5 Q. And it was sent to them with a view to persuading them
6 to become interested in the Western Terminal project?
7 A. Not all of them — actually, in the end, if you refer to
8 the «Status of lenders discussions» they were contacted,
9 yes, but not all of them asked for the IM. For those
10 who signed NDAs and said they would like to take it to
11 the next stage were, indeed, sent the IM.
12 Q. I think in your witness statement you describe a status
13 of lender discussion document?
14 A. Report.
15 Q. That’s right, yes. I think, if I — sorry,
16 Mr Bromley-Martin, sorry to detain you, I just need to
17 find the …
18 Yes, it is paragraph 42, sorry about that, on
19 {C1/3/8}, so the next paragraph you explain that you:
20 «… recorded the banks’ attitudes and comments in a
21 document entitled ‘Status of Lenders Discussions’…»
22 A. Indeed.
23 Q. Can you see that? You say:
24 «It was updated once a week and sent to Vitaly and
25 his staff.»
1 morning, I know you have a summary of the port project
2 by the Oslo Marine Group, I have no idea where it is in
3 your papers, but I know you have it, and I would just
4 like to bring to the court’s attention the page on which
5 it describes Western Co and its ownership. If I could
6 read verbatim:
7 «Currently the terminal of Western Company includes
8 three companies: LLC Western Terminal, JSC Western
9 Company, LLC Western Production Company, each of them
10 owned by LLC Stividoyna Company Scandinavia with a fixed
11 price capital of 100 per cent.»
12 So I think that is where some of the confusion may
13 lie, in that the sale document you showed me this
14 morning said that one company owned Western and my
15 information is that three companies owned it.
16 My second point, sir, is that the paper that we
17 talked about earlier which I handed out, that was to
18 remind me in the heat of the battle, if I can call it,
19 as a thing. Mr Stroilov asked me if I could bring
20 copies, because he said if you use it in court you
21 should be able to produce it. So if I again have
22 transgressed court etiquette, please forgive me, it was
23 an aide-memoire to myself that has gone beyond its
24 intended purpose, if I could leave it like that.
25 MR LORD: Right, thank you, Mr Bromley-Martin.
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1 Could you please be shown {D84/1153/1} which is
2 a version of this status of lender document that you
3 have described.
4 A. Mm hmm.
5 Q. And it is dated 10 October 2008, which we see in the top
6 right corner.
7 Again, I will be corrected if I am wrong here, but
8 I think this is the last version of this document that
9 we have seen, I think, Mr Bromley-Martin. Do you think
10 it likely that this 10 October 2008 status of lender
11 document is either the last, or probably one of the last
12 versions of this document that was produced?
13 A. It’s probably one of the last, I suspect.
14 Q. Yes. I understand.
15 A. But, to be honest with you, I can’t be certain of that,
16 but definitely from the date it would indicate it was
17 one of the last, if not the last, version.
18 Q. I understand. You have said in your witness statement
19 that generally the feedback we received was it was
20 a good project and definitely fundable. I just want to
21 test that, if you don’t mind, by looking through some of
22 these entries in this status of lender document.
23 A. Mm hmm.
24 Q. You can see that you have the «lender» down the left
25 side, you have the «contact», then you have
1 on the assumptions, do you remember?
2 A. I would imagine that as there are — as you probably saw
3 from all the red numbers on that page — 500 or 600
4 assumptions in that model, and they may have been asking
5 for any of them. Presumably they would centre in on the
6 capex and the potential revenue stream.
7 Q. Does this document provide a reasonably accurate status
8 report on the degree of interest of prospective lenders
9 as at 10 October 2008?
10 A. On the basis it was our control document it is actually
11 100 per cent reflective of the discussions that my
12 colleagues and I had with these banks.
13 Q. So if we go to {D84/1153/2}, Standard Bank of South
14 Africa, halfway down, «Effectively on hold in current
15 market»?
16 A. Yes, right.
17 Q. Then if we go down to {D84/1153/3}.
18 A. 3 is the last page, is it?
19 Q. No, it’s not the last page.
20 A. «Potential Equity Providers». Right, yes.
21 Q. Then {D84/1153/4}, we have a series of banks:
22 «HSBC… not interested in Russia».
23 What does that signify, what does that mean?
24 A. HSBC weren’t interested in lending to Russia. CIS.
25 Q. I see. And that was true of ING as well?
185 187
1 «e-mail/phone», «meeting?» then you have «latest
2 position» on the right; can you see that?
3 A. Yes.
4 Q. So if you have IFC, as at 10 October 2008 IRC it looks
5 like they were concerned about leverage, is that right?
6 A. Exactly, yes.
7 Q. So did that mean that they thought that the OMG group
8 was over borrowed, would that be fair?
9 A. No, that’s not the way they put it to me. Basically, if
10 I can use the court expression, they wanted there to be
11 a little more skin in the game in the form of equity,
12 which clearly Vitaly wasn’t in a position to provide.
13 Q. But they were not positive at this stage, were they?
14 A. Yes. Well, they wouldn’t have come back and asked me,
15 or be worried about the leveraging if they weren’t
16 really interested in the project.
17 Q. Then Sumitomo Mitsui Banking Corporation, it says:
18 «Mtg — 10.9.08.»
19 It says:
20 «Now have model and asking questions on
21 assumptions.»
22 A. Yes, which is perfectly understanding procedure, yes.
23 You would be worried if they weren’t asked questions
24 about the assumptions.
25 Q. Yes, Mr Bromley-Martin, what questions would they have
1 A. Yes.
2 Q. Then KBC:
3 «No in their sphere of activity.»
4 What does that mean?
5 A. They are more a hardware funder rather than
6 an infrastructure.
7 Q. Right, and quite a number of banks on that page seem to
8 be not interested or not covering Russia, would that be
9 right?
10 A. I would say that is probably fewer rejections than one
11 would normally have, actually.
12 Q. And down to Nordea Bank on that page, it says
13 «declined», 29 August, I think. What does:
14 «Too big for OMG»?
15 What does that mean?
16 A. They didn’t think they had the project management
17 capacity to build OMG — build, I beg your pardon,
18 Western Terminal.
19 Q. If we go, please, in your witness statement to {C1/3/8}.
20 A. Mm hmm.
21 Q. It’s right, isn’t it, that a number of lenders expressed
22 concerns about the model, didn’t they?
23 A. One did.
24 Q. Yes. And those concerns included, didn’t it, the
25 handling charge that was put in?
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1 A. No.
2 Q. What were the concerns, then?
3 A. For some reason they didn’t like the way it was laid
4 out, because all the banks had their own way of doing
5 these, and also remember that BNP were trying to justify
6 their proposed retainer fee.
7 Q. Yes, but in paragraph 39 on {C1/3/7}, I think you
8 accepted earlier that in September 2008 you redid the
9 model, removing bulk cargoes and reducing the tariffs;
10 is that right?
11 A. Yes, because I was asked to flex the model. I mean,
12 that is standard practice when you are talking to
13 anybody, because what they want to know is what’s the
14 downside, what’s the downside risk for this, that you
15 can’t service a debt. So they would automatically —
16 there’s no inference to be taken from the fact they
17 asked me to do that.
18 Q. And if you go to {C1/3/8}, paragraph 43.
19 A. Mm hmm.
20 Q. You are talking about BNP Paribas, I think, in this
21 paragraph.
22 A. Yes.
23 Q. And I think you say in this paragraph that:
24 «BNP also queried a valuation of real estate owned
25 by the Group at Western, which had been undertaken by
1 report? They get a comfort from an internationally
2 recognised valuer —
3 A. I’m not quite sure if I’m allowed to use this expression
4 in the court, sir, but I call it CYA.
5 Q. What’s that?
6 A. «Cover your arse».
7 Q. I see.
8 A. That’s purely what it’s there for, because at the end of
9 the day, if they get a rocket from their boss for
10 getting a bad loan out, they can say: oh, well, KPMG
11 looked at it, or CBRE did the valuation, boss, and they
12 justify themselves that way.
13 Q. And when you say at the end of paragraph 43 the
14 following:
15 «I recall that we considered the valuation [that’s
16 the Lair one] was accurate, but suggested firmly to
17 Vitaly that the Group engage a British or European
18 company such as CBRE to value the assets, which would
19 have had more weight with BNP.»
20 Can you see that?
21 A. Well, that seems to be what I’ve just said, isn’t it?
22 Q. What was Dr Arkhangelsky’s reaction to your firm
23 suggestion?
24 A. I mean, in the sense that he was coming around to
25 the appointment of a PSC contractor, a project services
189 191
1 a Russian valuer called Lair … Lair had valued the
2 real estate at the terminal at RUB 4.8 billion (…
3 about US $160 million)…»
4 Do you see that?
5 A. I think the actual translation, I found the translation,
6 I probably did that myself, I found the English
7 translation which came out at 220 so I —
8 Q. And you say further on in that paragraph:
9 «BNP wanted to be able to rely on a valuation
10 produced by an internationally recognised valuer.»
11 A. I’ve mentioned that already this morning, yes.
12 Q. So should his Lordship take it that BNP Paribas, who
13 seemed to be the most interested bank of any, that they
14 seemed to be unprepared to rely upon the valuation of
15 Lair; would that be a fair thing to say?
16 A. I think you’ve got to understand how the banks work.
17 The notion of no one got sacked for buying an IBM holds
18 very true in the banks. That’s why the banks would have
19 wanted a western engineering contractor, a design
20 engineer, they wanted western companies they could rely
21 upon to do the valuation, western companies to do the
22 financial audit, et cetera, et cetera. That’s pretty
23 standard. Africa, India or Russia.
24 Q. That’s because they would have some concern, would they,
25 about the reliability of a non-international valued
1 contractor, and the appointment, he was definitely
2 coming around to that viewpoint and understood that BNP
3 wanted it, but of course, the situation never arose
4 because everything came to a standstill in mid-October.
5 Q. He never actually agreed to have an international valuer
6 value Western Terminal, did he?
7 A. My recollection, and I put it no stronger than that, is
8 that Keith and I — Keith Parker, who is the UK managing
9 director, and I agreed that this was essential and the
10 pair of us agreed that we would work on Vitaly to
11 convince him, but the opportunity never arose.
12 Q. I want to focus on BNP Paribas, please,
13 Mr Bromley-Martin. I want to trace their participation
14 in this project.
15 Could you be shown {D74/1074/5}, please? You can
16 see a letter from BNP Paribas to Dr Arkhangelsky and
17 Mr Parker.
18 A. Mm hmm.
19 Q. And Mr Macpherson, September 12, 2008; can you see that?
20 A. Yes.
21 Q. And this was a letter of interest from BNP Paribas,
22 wasn’t it?
23 A. The first one we got, yes.
24 Q. Yes. And it set out, didn’t it, a number of the further
25 steps that BNP Paribas would insist upon having carried
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1 out before they got into any kind of binding fundraising
2 position; isn’t that fair?
3 A. Well, this is a bog-standard template letter they send
4 out, so exactly, one would expect to get this letter.
5 Q. So if we go to the second page, {D74/1074/6}, we can see
6 they say this during a first phase:
7 «The following sections are intended to provide you
8 with the requirements of BNP Paribas (as
9 an international financing institution) in order to be
10 ultimately in a position to lend to the Project.»
11 Do you see that?
12 A. Mm hmm.
13 Q. Then it says:
14 «During a first phase… the risks related to the
15 Project will need to be reviewed… a financial model
16 developed… a term-sheet agreed and … a review of the
17 involvement of Multilaterals institutions and/or ECAs
18 conducted.»
19 A. Mm hmm.
20 Q. They are suggesting, aren’t they, they are going to want
21 risk analysis and due diligence to be done?
22 A. Yes.
23 Q. And that would be independent of OMG, wouldn’t it?
24 A. Exactly.
25 Q. And three up from the bottom, they want a financial
1 Q. And this was a formal proposal to act as structuring and
2 arranging bank.
3 A. Yes.
4 Q. Building on from their letter of interest.
5 A. Very few banks, even in the height of the 2007 bubble,
6 would have lent 300 million. It was increasingly
7 becoming standard practice to syndicate loans, and
8 that’s effectively — they were happy to put the
9 syndication together.
10 Q. And they said, three paragraphs up from the foot of
11 the page:
12 «We believe therefore that significant preliminary
13 works need to be carried out at this stage in order to
14 elaborate the most appropriate financing structure for
15 the Project.»
16 So as you understood it, BNP Paribas, as at the end
17 of September 2008, were telling you that significant
18 preliminary works would have to be carried out; is that
19 right?
20 A. Correct.
21 Q. Then they have paragraph (i):
22 «Structuring services offer».
23 They are offering to help structure the fundraising.
24 Over the page to page 2, you can pick up a number of
25 things that BNP Paribas are suggesting need to be done.
193 195
1 model to be run on the project.
2 A. Mm hmm.
3 Q. And, again, they would want that model to have been
4 verified or authenticated independently of OMG, wouldn’t
5 they?
6 A. Yes, we’re quite used to that, so someone like
7 Pricewaterhouse or E&Y would take my model and not quite
8 take it apart, but quiz me, go through it line by line
9 with —
10 Q. And possibly take it apart?
11 A. In the nicest possible way.
12 Q. Yes.
13 A. They may want to change some assumptions. I mean, it’s
14 quite usual to send them anything up to four or five
15 different scenarios, funding structures, capex, revenue
16 streams, everything else, so they can form their own
17 view of the fundability of the project, what gearing it
18 would stand.
19 Q. And if we go to {D74/1102/1}, please, there is a letter
20 of 25 September 2008, so a couple of weeks later, or
21 thereabouts.
22 A. Yes.
23 Q. BNP Paribas write again to Mr Macpherson and to you,
24 I think, this time, Mr Bromley-Martin?
25 A. Yes.
1 In the second paragraph, you can see this:
2 «When appointed, we will start reviewing the
3 financial model prepared by Oxus and providing comments
4 to ensure that it answers lenders’ usual requirements.
5 On the basis of our preliminary review, the model may
6 need to be substantially amended and we would like to
7 discuss the most efficient process to do so with you.»
8 Mr Bromley-Martin, just listen to the question; can
9 you see that paragraph?
10 A. Yes.
11 Q. So BNP Paribas seem to be suggesting that following
12 a preliminary view, your model may need to be
13 substantially amended; now, did you have any reason to
14 understand or to appreciate what was meant by that? And
15 maybe you didn’t, maybe they didn’t tell you what they
16 meant, so tell his Lordship what you actually know
17 rather than your speculation, please?
18 A. A model is a model, it seeks to replicate reality to
19 a greater or lesser extent, and clearly they wanted it
20 to go into considerably more detail than the model we
21 had.
22 Q. But they say:
23 «On the basis of our preliminary review, the model
24 may need to be substantially amended.»
25 So can his Lordship take it that by this stage, your
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1 model, one of your models, had actually gone to
2 BNP Paribas?
3 A. Yes, exactly.
4 Q. And that means the spreadsheet had gone, had it?
5 A. I’m almost certain it had by that stage, yes.
6 Q. And did they not tell you or did you not query with them
7 what were the substantial amendments they had in mind?
8 A. Not in so few words, no.
9 Q. So you can’t give any evidence to his Lordship as to
10 what amendments may have been intended by this paragraph
11 from BNP?
12 A. They weren’t querying the revenue stream or the P&L
13 account, they were really wanting to structure the debt
14 in a different way and, therefore, the model would have
15 to be changed. But the basic algorithms of multiplying
16 numbers of containers by the average income is clearly
17 a straightforward algorithm and the model is perfectly
18 successful in achieving a P&L, it was more the funding
19 structure they wanted to look at.
20 Q. Then halfway down the page they say this:
21 «We also suggest that the due diligence related to
22 the market be undertaken as a matter of priority. We
23 would therefore need to be advised by an independent
24 technical consultant.»
25 A. That’s perfectly normal. If you look, you have the EC
1 practice and nothing untoward could be read into that.
2 Q. And they wanted an independent technical consultant.
3 That would be independent of Oxus, would it?
4 A. Yes, exactly. Which would be why we wanted to appoint
5 Scott Wilson or Matt MacDonald or whomever, yes.
6 Q. And then they go on to say:
7 «The above activities will culminate in the fatal
8 flaw analysis and a detailed risk analysis of the
9 Project and related mitigation strategy as may be deemed
10 necessary in the context of raising a long term project
11 financing.»
12 Can you see that?
13 A. Yes, all standard practice.
14 Q. And it is right, isn’t it, that in the event, those
15 various checks were not carried out, were they? In
16 the event?
17 A. No, because we did — everything came to a grinding halt
18 shortly after we received this letter.
19 Q. So when you say in your witness statement in
20 paragraph 54 on {C1/3/11}, in the first paragraph, you
21 talk about BNP’s proposal.
22 A. Mm hmm.
23 Q. When you say in the third line:
24 «This was in line with market rates — another sign
25 that BNP regarded the project as easily fundable.»
197
1 Harris —
2 Q. Sorry, Mr Bromley-Martin, I wasn’t asking for you to
3 give a sort of speech, just look at the paragraph and
4 then if I may ask the paragraph, because I am trying to
5 finish today with you, but it is a bit touch and go at
6 the moment, all right.
7 Can you see the paragraph:
8 «We also suggest that the due diligence related to
9 the market be undertaken as a matter of priority. We
10 would therefore need to be advised by an independent
11 technical consultant.»
12 Can you see that paragraph?
13 A. Mm hmm.
14 Q. What they were saying there was they would want some
15 independent of OMG market due diligence to be undertaken
16 as a matter of priority, weren’t they?
17 A. Yes.
18 Q. In other words, they were not going to rely, were they,
19 on — BNP Paribas were not going to rely upon the market
20 analysis that had been carried out so far by or on
21 behalf of OMG? They were going to do their own, weren’t
22 they?
23 A. Well, if you recall in the documents, there’s such
24 a market survey done by EC Harris on behalf of EBRD on
25 the Vyborg project, so that was absolutely standard
199
1 It’s not really a fair thing to say, is it, that BNP
2 regarded the project as easily fundable? They hadn’t
3 actually got to a stage where they could give you that
4 sort of assurance, had they, really?
5 They hadn’t carried out the various checks that they
6 were obviously going to do before they took the matter
7 out to the market to check on the fundability; that’s
8 right, isn’t it?
9 A. Sorry, I’m not quite sure of the question here.
10 Q. I’m just querying whether or not you have a basis for
11 saying BNP regarded the project as easily fundable when
12 I have just taken you to a letter that seemed to suggest
13 a number of checks being undertaken by way of
14 BNP Paribas before they agreed to take it out to
15 the market?
16 A. No bank will lend any money without those three or four
17 independent bits of work being done ever anywhere in
18 the world or anything else. That is completely and
19 utterly standard practice. It is not untoward at all,
20 not in the faintest. The fact that they only wanted
21 €25,000 a month meant that they reckoned it was a low
22 risk project and in line with market rates and therefore
23 there was nothing untoward there by the 25,000.
24 If they charged 100,000 then I would have been
25 worried because they clearly were worried they weren’t
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1 going to succeed and they just wanted to be paid to do
2 some work, but at €25,000 a month, that was very much in
3 line with market rates and therefore they were clearly
4 confident they could put the syndication together.
5 That’s my point.
6 Q. If we look at their draft mandate letter at —
7 MR JUSTICE HILDYARD: Can we have a quick look at
8 {D74/1102/1}, I’m so sorry. I think it is the second
9 page {D74/1102/2}.
10 Yes, Mr Bromley-Martin, in the last sentence before
11 the break at «Underwriting/arranging offer» it says:
12 «Furthermore, we will need to discuss the strategy
13 to approach both commercial banks and multi-lateral
14 institutions (or export credit agencies).»
15 I just wanted to ask about that because that gives
16 an impression that the size of the loan is going to mean
17 that on syndication they are going to have to go to
18 a broader spread, not only investment banks, commercial
19 banks and multilateral institutions or export credit
20 agencies, as if getting the syndication off the blocks
21 is not going to be an altogether straightforward
22 process; would you comment on that?
23 A. Rather the reverse, sir. At the time, these banks were
24 all putting together syndicated loans. They had
25 special — such was the level of work in the market that
1 Q. And I think in the event it probably wasn’t signed, was
2 it, the way things worked out?
3 A. No. Keith and I had considerable pressure on Vitaly to
4 agree to this and sign it but, as you can see, it
5 was October, and I think it was October 12 when we were
6 told to stop work, so we never got to that point.
7 Q. If we could go to the second page, please, {D75/1116/2},
8 in paragraph 1.4 of this letter can you see
9 «Arranging Option» set out there?
10 A. Mm hmm.
11 Q. Can you see the beginning of the second paragraph:
12 «For the avoidance of doubt, by accepting the
13 Sponsor’s appointment hereunder [so that’s BNP agreeing
14 to be appointed here] and in performing the Services,
15 BNP Paribas in no way explicitly or implicitly makes (or
16 otherwise represents that it will make) any commitment
17 or offer (or otherwise agrees) to invest in or to
18 provide financial resources to, the Project, the Sponsor
19 or any other party.»
20 Can you see that?
21 A. Yes.
22 Q. So it is right, isn’t it, that the most that BNP Paribas
23 had agreed as part of this interest that it had
24 expressed, was that it was prepared to act as structurer
25 and arranger, but it had not actually committed to
201 203
1 banks had special syndication loan departments to
2 concentrate on this work, so if Bank A had a deal one
3 week that B and C contributed to, Bank C might go back
4 to Bank A and say: right, we took a 50 million ticket
5 off you last week, you take a 50 million ticket for this
6 other project off us for next week, please. So it was
7 a pretty live market, the syndication loan market, at
8 that stage. So I don’t see that as anything untoward or
9 anything to be worried about, and something that would
10 be a matter of routine. Does that answer your question,
11 your Lordship?
12 MR JUSTICE HILDYARD: I fully understand that many of these
13 loans, if not most of these loans, were syndicated
14 loans, but I wondered whether the need for discussion
15 with regard to looking into the commercial banks and the
16 multi-lateral institutions or export credit agencies
17 signified that it would have to be a pretty broad
18 syndication, which might take a bit of time.
19 A. No, I think that is a wrong interpretation, sir.
20 MR JUSTICE HILDYARD: Right.
21 Sorry.
22 MR LORD: If we go to {D75/116/1}, that is a draft mandate
23 letter, I think from BNP Paribas to OMG. It was a draft
24 mandate, wasn’t it, for structuring services?
25 A. Yes.
1 provide any of its own money to this project; that’s
2 right, isn’t it?
3 A. Well, you wouldn’t expect it to at this stage.
4 Q. That wasn’t the question — that wasn’t quite the
5 question, Mr Bromley-Martin. Is it right that
6 BNP Paribas were making it plain here —
7 A. This is standard, boilerplate bank spiel that goes into
8 a letter like this. That is — this is in every offer
9 letter you ever see. It’s a —
10 Q. Yes.
11 A. So, again, you are trying — you are trying to cast
12 aspersions on BNP’s intentions where here the lawyers
13 have clearly got hold of it and written this clause in
14 here to exclude any misunderstanding, presumably. That
15 is a very standard paragraph in any letter of this kind.
16 Q. But BNP Paribas never got to a point where they had
17 contractually bound themselves to lend any money to
18 the Western Terminal project, had they?
19 A. That was in the hands of Vitaly. If Vitaly had signed
20 this letter and sent the cheque back, yes, they would
21 have done.
22 Q. Sorry. The question was: would it? But did it happen?
23 It didn’t ever happen, did it?
24 A. No, I’ve already explained to you it didn’t happen
25 because we were told to stop working the middle
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1 of October.
2 Q. Could you be shown, please, {D98/1259/1}, which is
3 a letter, I think, from you to Dr Arkhangelsky,
4 27 November 2008; can you see that?
5 A. Yes.
6 Q. And you are trying to revive Dr Arkhangelsky’s interest
7 in this Western Terminal finance project, aren’t you?
8 A. Exactly.
9 Q. And you can see in the second paragraph you say this:
10 «Given this, our advice is promulgated by:
11 «1. The fact that, if OMG were to borrow
12 $300 million, using western finance would save OMG
13 roughly $50,000 per day in interest charges alone.»
14 Can you see that?
15 A. I can, I mentioned that this morning, if you remember.
16 Q. Yes. So, by my calculation — and I am sure you are
17 better at it than me — that’s about $17 million per
18 year in interest saving; is that right?
19 A. Something — probably a little bit more, actually. 175,
20 yes. 175, wouldn’t it be?
21 Q. How much per year?
22 A. 175. I think that’s right. Half of 364.
23 Q. I could be completely wrong, I may well be. Is that
24 50,000 per day, so that’s times 365, is it?
25 A. Mm hmm.
1 Then you say this:
2 «So what is the downside risk to you?»
3 Just trying to test that, Mr Bromley-Martin. You
4 have a situation where OMG could save potentially
5 US$18 million a year in interest charges, and the price
6 to pursue that refinancing is €25,000 per month. It’s
7 right, isn’t it, that Dr Arkhangelsky did not go ahead
8 with this project, notwithstanding those factors?
9 A. As I understand it, he didn’t have the 25,000 a month to
10 pay for it, or it wasn’t on his list of priorities to do
11 so.
12 Q. And might it also have been a factor that by that stage
13 it was appreciated that this financing initiative with
14 Western Terminal was going to involve a lot more
15 rigorous due diligence by lenders than perhaps had
16 happened to earlier fundraisings by OMG. In other
17 words, was there a bit of discussion with OMG at this
18 time, Mr Bromley-Martin, about the sort of rigorous
19 checks that were going to be applied to the material
20 that OMG had put out to the lenders? Was that a factor,
21 do you think, as well here?
22 A. I mean, we had many philosophical chats with Keith,
23 Vitaly and myself about this subject.
24 Q. Mm.
25 A. At the risk of taking up your time, if you sought to
205
1 Q. Maybe I am wrong. Perhaps somebody could do that
2 calculation. Sorry, I might be out by a serious factor.
3 It wouldn’t be the first time.
4 No, I think it’s about 18 million. Would that be
5 about …?
6 A. A bit more, yes.
7 Q. Right, it’s about $18 million. You were saying to
8 Dr Arkhangelsky: well, if OMG goes ahead with this
9 project finance with Western Terminal, you could save
10 $18 million per year in interest charges.
11 A. Based on the 20 or 22 per cent.
12 Q. Yes.
13 A. Yes.
14 Q. And the only commitment required from OMG to take up
15 this potential financing at that stage, the only
16 commitment required was to pay the BNP monthly retainer
17 of €25,000; that’s right, isn’t it?
18 A. Mm hmm.
19 Q. And if you go over the page to {D98/1259/2}, you can see
20 what you say in the third paragraph:
21 «Either route [you are looking at different routes
22 now for financing] we are looking at completing this
23 fundraising in 3Q09 at the earliest. But clearly any
24 delay in appointing the PSC contractor will delay that
25 closing, with each day costing $50,000.»
207
1 make a particular decision in the design stage which
2 cost $1, if you have to change that decision in
3 the construction sequence, it would probably cost you
4 $100.
5 So the philosophical issue I had with Vitaly, and
6 the reason why I was pressing, and we were pressing to
7 get him to appoint the PSC contractor, was in order to
8 define the project and in defining the project that you
9 could actually fund it a lot more easily, because not
10 only would there be a defined project, but also a
11 detailed cost estimate on which the Bank could rely.
12 Q. You see, Mr Bromley-Martin, I’m going to suggest to you
13 that with so much upside and so little downside, the
14 options really are either OMG really had reached the
15 end. If it couldn’t raise €25,000 per month to save
16 $18 million per year, it was really — that business was
17 finished, wasn’t it, Mr Bromley-Martin, really, in your
18 view?
19 A. The western project, or OMG?
20 Q. Well, any business. Any company or group of companies
21 that is told: well, you could save $18 million a year
22 but you have to pay €25,000 per month for another three,
23 six months —
24 A. Well, you are slightly — I was clearly using
25 a sledgehammer here, sort of thing. Clearly there were
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1 other expenses involved because clearly we needed to get
2 all this due diligence work done. So in committing to
3 the $25,000 a month, he was also committing to paying
4 for all the due diligence work that needed to be done
5 with the independent auditor, the independent legal
6 adviser and the independent engineering design
7 consultant and the independent market survey.
8 So that would have been probably getting on for half
9 a million dollars worth of work that would have to go on
10 hand in glove with this BNP Paribas. I was gilding the
11 lily a little bit here in trying to get my point across
12 rather than suggesting that that was the only cost
13 involved.
14 Q. But you were struggling, weren’t you, to explain why
15 a business with these possible refinancing advantages,
16 wouldn’t be going ahead. It was puzzling to you, wasn’t
17 it, Mr Bromley-Martin?
18 A. It was very puzzling to me because I thought it was such
19 a phenomenally profitable project.
20 Q. And doesn’t that show that the business concerned, the
21 potential borrower, was in a phenomenally distressed
22 state that it couldn’t go ahead?
23 A. Forgive me, I thought that the issue here was the value
24 of Western, had it been possibly developed, rather than
25 the financial status of OMG.
1 initiatives.
2 So we were not involved directly with the KIT work;
3 merely we were kept abreast and asked for our comments
4 and how that might affect the other fundraising
5 activities.
6 Q. But taking it in stages, OMG as a group were
7 considering, or were working on, three separate
8 fundraising initiatives around about summer/autumn 2008,
9 weren’t they?
10 A. Probably more than that, but three, yes.
11 Q. At least three, Mr Bromley-Martin, weren’t they?
12 A. Yes.
13 Q. Western Terminal project, yes?
14 A. Mm hmm.
15 Q. KIT Finance LPNs; yes?
16 A. Mm hmm.
17 Q. And EBRD, Vyborg Port.
18 A. And there was also other — they were also talking about
19 raising finance for ships and also for Onega.
20 Q. And I think the first three that I described to you,
21 I think the total amount of finance being sought to
22 raise at that time was probably over US$500 million.
23 A. I think you — I can’t remember the —
24 Q. 300 for Western Terminal: €150 million for EBRD, and
25 US$150 million for KIT Finance; all right?
209 211
1 Q. I’m going to ask you about KIT Finance, please, now,
2 paragraph 62 of your witness statement, {C1/3/12}. You
3 give some evidence in this paragraph about the
4 KIT Finance loan participation note proposal, which was
5 being debated around August 2008. You say in
6 paragraph 62, you refer to the KIT Finance matter, and
7 then you say halfway down:
8 «Discussions with KIT followed as to how the two
9 financing projects would work in parallel, and with the
10 proposed EBRD financing too.»
11 Can you see that?
12 A. Indeed.
13 Q. So it is right, isn’t it, that in August 2008 you were
14 discussing the issue of how would a number of these OMG
15 financing initiatives, how would they work together? In
16 other words, you had the Western Terminal project
17 finance that you were doing, you had the KIT Finance
18 LPNs, and you had some proposed European Bank for
19 Reconstruction and Development financing, didn’t you?
20 There were three separate potential fundraisings
21 being —
22 A. Sorry, if I can explain it differently: you had the
23 funding that we were organising for the western project,
24 you had EBRD looking at Vyborg, and then KIT came in on
25 a different tangent to cut right across these other two
1 A. Yes. Those numbers ring a bell.
2 Q. So upwards of US$500 million.
3 A. But they were mutually exclusive, remember.
4 Q. We’re going to come to that.
5 Your witness statement slightly plays down your
6 awareness, or your involvement, in the other projects,
7 doesn’t it, apart from Western Terminal, would that be
8 fair?
9 A. Vyborg and KIT, you mean?
10 Q. Yes, and why is that?
11 A. Because, as I said in my witness statement, we were
12 asked to concentrate on Western.
13 Q. Could you look at {D66/1035.1/1}, please. I just want
14 to take you to a number of documents we have seen where
15 you appear to be involved in at least some of
16 the consideration of the other financing initiatives by
17 OMG. Do you have that document, Mr Bromley-Martin?
18 A. I have an e-mail from Keith on 21 August. Or am I
19 looking at the hard copy here?
20 Q. That’s all right, {D66/1035.1/1}.
21 A. I beg your pardon. No, I have a different thing on the
22 screen completely.
23 Q. That’s okay.
24 A. Halcro(?), a letter to Halcro?
25 Q. It is on the screen, yes.
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1 A. I haven’t been given that in hard copy.
2 Q. Perhaps just look on the screen.
3 A. Right, okay. Sorry, yes.
4 Q. That’s all right. It is an e-mail of 21 August 2008
5 from Keith Parker. I think it is actually to people at
6 EBRD, isn’t it? Or maybe it is KIT Finance. Hang on,
7 I need to check.
8 A. From memory that was KIT. That was KIT, I’m sure.
9 Natalia I am pretty sure was KIT.
10 Q. Yes, it’s to KIT Finance. Sorry, yes, it is to all at
11 KIT Finance, my fault.
12 Can you see that you are copied in on the e-mail and
13 so is Dr Arkhangelsky; can you see that?
14 A. Yes.
15 Q. And there is some text, obviously, in the e-mail, but
16 can you see that it appears to be sent on behalf of
17 Keith and Robin; can you see that?
18 A. Yes, because he and I shared our concerns about this
19 approach.
20 Q. So Mr Parker is sending an e-mail to KIT Finance and
21 he is sending it on behalf of himself and you, isn’t he?
22 A. Yes, exactly.
23 Q. So at least to that degree you were involved in
24 the KIT Finance debate, weren’t you?
25 A. Only in a negative sense, by which I mean they were
1 thought that whilst they were discussing a big loan to
2 a borrower, that borrower was also trying to get some
3 serious finance from other lenders? That tends to set
4 off alarm bells, doesn’t it, Mr Bromley-Martin?
5 A. Well, by the time they found out, of course, we hadn’t
6 furthered the discussions with BNP Paribas for the best
7 part of a month, it might have been six weeks. So
8 I think it was in late November, early December that BNP
9 became aware of these abortive efforts with KIT.
10 Q. And the reason that one lender wouldn’t like the fact
11 that the same borrower was trying to raise money
12 elsewhere is because there would be concern, wouldn’t
13 there — there would be a concern about whether that
14 borrower was actually trying to over borrow and there
15 would be issues about transparency, wouldn’t there, for
16 the lender: the first lender would want to know that it
17 had fully understood the borrower’s business and purpose
18 before it made its loan, and it would be worried if
19 there were other loans going on in the background?
20 I know it is a bit of a long point, but is that fair?
21 A. As I said, yes, they were mutually exclusive, these
22 loans.
23 Q. Yes, I understand. And if you look —
24 A. So if KIT had gone ahead, our work would have got
25 nowhere with BNP.
213 215
1 basically suggest — KIT were suggesting that there was
2 a Cypriot holding company set up which would own all the
3 major assets within the OMG group, and clearly that
4 would completely and utterly negate our discussions with
5 BNP Paribas if that was, indeed, the case, allowed to go
6 ahead.
7 Q. Yes.
8 A. So, basically, by this time we were getting a lot of
9 interest and the last thing I wanted to do was for
10 BNP Paribas or somebody to discover that there was
11 an alternative restructuring of the route going on to
12 the detriment of the fundraising that we were doing.
13 Q. Yes. So, in other words, if the Western Terminal banks
14 got wind of some other finance raising of the sort —
15 A. Which they did.
16 Q. — then that would be probably fatal for the
17 Western Terminal finance raising?
18 A. I think if you recall in the documentation we did in
19 fact get an e-mail from BNP saying: what’s going on,
20 because they had seen it in the IJ, International
21 Journal.
22 Q. Yes.
23 A. So, yes, it did cause us a considerable amount of
24 embarrassment, but nothing terminal.
25 Q. Lenders wouldn’t like it, would they, really, if they
1 Q. Yes. And if you look on this e-mail there were a series
2 of questions that were being identified by you and
3 Mr Parker.
4 A. Mm hmm.
5 Q. Number one, I think these were possible concerns for the
6 banks:
7 «Why is a Cyprus Holding Company needed? (It will
8 be viewed negatively by banks).»
9 Can you just confirm that that was a potentially
10 serious issue at the time for the fundraising by OMG?
11 A. Because effectively —
12 Q. No, can you confirm that it was a potentially serious
13 issue.
14 A. Absolutely.
15 Q. And an adverse issue for fundraising?
16 A. Adverse in the context of what we were doing, not
17 necessarily what KIT were proposing. KIT were our
18 competitors, effectively.
19 Q. And why would it be viewed negatively by banks?
20 A. Because they would see the assets being transferred to
21 a Cypriot company, and there —
22 Q. Right.
23 A. So, as I say — and they would have owned any
24 unencumbered assets and, therefore, it was — it would
25 have been seen very negatively.
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1 Q. And I think you actually did a note. You don’t refer to 1 Can you see that?
2 it in your witness statement, I think, but I think you 2 A. Mm hmm.
3 did a fuller note of these concerns. Would you be kind 3 Q. You see what you say afterwards:
4 enough, please, to go to {D67/1042/1} and, actually, if 4 «Oxus’ view of the situation …»
5 you have first {D67/1042.1/1} you can see that on 5 Can you see that? Can you just confirm that that
6 27 August 2008, so about a week after that last e-mail, 6 was your view of the situation?
7 Mr Parker sent an e-mail to Dr Arkhangelsky copied to 7 A. Sorry, where are you? I have lost you.
8 you «Comments on LPN», that’s the KIT Finance 8 Q. Halfway down the first page —
9 initiative, saying: 9 A. EBRD —
10 «Vitaly, I attach a note from Oxus regarding the 10 Q. — you say:
11 KIT/LPN.» 11 «… as with any commercial bank, will be very
12 Can you see that? 12 surprised to hear that $75 million is being raised to
13 A. Exactly, yes. 13 fund Vyborg, as the two ‘fundings’ will be running in
14 Q. «I have discussed this with Oxus and agree with their 14 parallel.»
15 comments. In essence, the LPN would cross over both the 15 Can you see that?
16 EBRD/Vyborg & Oxus/OMG Western projects. If we proceed 16 A. Yes. Yes.
17 with the LPN in September, then both the EBRD & Oxus 17 Q. And that would have been a surprise to a commercial
18 projects would most probably fail.» 18 bank, wouldn’t it?
19 Can you see that? 19 A. Totally.
20 A. Yes. 20 Q. Why would they have been surprised?
21 Q. Then I think the note that he is referring to there is 21 A. Because it was effectively pledging the same assets that
22 your note, and it is at {D67/1042/1}. 22 they thought that their loans would have.
23 Mr Bromley-Martin, if you would go to the second page 23 Q. Trying to sort of double-up on the security, really?
24 {D67/1042/2}, you can see what appear to be your 24 A. I don’t think it is doubling-up on the security.
25 initials and the date of 27 August 2008. 25 I think what Vitaly was trying to achieve here was hedge
217 219
1 A. Yes.
2 Q. Can you see that?
3 A. Yes.
4 Q. And can you confirm to his Lordship that that is a note
5 that you drafted for the benefit of OMG on or around
6 27 August 2008?
7 A. I did, indeed.
8 Q. And do you remember this note? Is it ringing some bells
9 with you?
10 A. To be honest, this is the first time I’ve seen it in
11 nearly eight years, but …
12 Q. And —
13 A. So if I may just quickly speed-read it?
14 Q. Yes. (Pause)
15 A. Yes. I’ve read it, yes.
16 Q. I think what you are doing there, Mr Bromley-Martin, is
17 you are expanding upon some of your concerns in relation
18 to three particular issues besetting the financing
19 initiatives, aren’t you?
20 A. Mm hmm.
21 Q. And you’ve said:
22 «The three major issues here are:
23 «1. Parallel funding for Vyborg with EBRD.
24 «2. Extent of the security being sought.
25 «3. Use of Cypriot company.»
1 all his bets and try several different funding routes at
2 the same time. Clearly as our interests lay in
3 completing Western, we were rather more interested in
4 him not torpedoing, if I can use that expression, our
5 efforts with BNP and the other banks to these guys at
6 KIT.
7 Q. And the second concern was the extent of the security
8 being sought, and you take that up in the second section
9 here. You say:
10 «The level of security, being sought by KIT, is, in
11 our view, excessive. There are two aspects to this:
12 «… the use of personal guarantees is most unusual
13 in this sort of deal.»
14 Can you see that?
15 A. Yes.
16 Q. Then over the page you say:
17 «(b) In the current market, the level of security is
18 bound to be higher than hitherto, and we have concerns
19 as to whether the security for the proposed $300 million
20 funding, provided by the Western Terminal itself, will
21 be sufficient for lenders. While we are making every
22 effort to avoid this, other Group assets may have to be
23 pledged to meet a potential lender’s requirement.»
24 Can you see that?
25 A. Exactly, yes.
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1 Q. So can his Lordship take it that by the end of
2 August 2008, you had a concern that the security being
3 offered for Western Terminal, in other words the
4 terminal itself, was not going to be sufficient for
5 lenders to lend $300 million on the strength of it?
6 A. Yes, because as I mentioned this morning, we were
7 looking for additional equity to be able to improve that
8 situation, so we were looking at every eventuality to
9 make the loan a little more attractive, exactly.
10 Q. And if, in fact, there wasn’t any additional collateral
11 to be found in the OMG group, or none to speak of, that
12 would have been a further problem potentially to this
13 Western Terminal financing, wouldn’t it?
14 A. Only to the extent that Vitaly, in bringing some equity
15 into the equation, would have had to relinquish outright
16 control of the Western Terminal. He could have still
17 had a majority, but perhaps brought in 33 per cent of
18 equity capital instead of debt. So that would still
19 have worked.
20 Q. Then number 3, «Use of Cypriot Company». You see what
21 you say there?
22 A. I think any tax haven like that, a number of them suffer
23 from the same trouble.
24 Q. Did you understand what the rationale behind using a
25 Cypriot company in this way was? Why was that being
1 A. No, they did not.
2 Q. No. I want to ask you, please, about the OMG debt
3 schedule. It’s right, isn’t it, that as part of your
4 work on the Western Terminal project you wanted to know
5 about the level of debts and pledges and guarantees that
6 OMG companies had entered into, isn’t that right?
7 A. Mm hmm, indeed.
8 Q. That’s a yes, because it would obviously be relevant,
9 wouldn’t it, when you are presenting to banks to be able
10 to show them the level of borrowing by the OMG group,
11 wouldn’t it?
12 A. Exactly. I mean, apart from knowing the general
13 situation of one’s client, clearly one needed to know
14 what assets were unencumbered and, therefore, available
15 to be used as additional security for any lender.
16 Q. And if you go, please — could you go to {D74/1096.1/1}.
17 A. D74?
18 Q. Yes, {D74/1096.1/1}. No, my fault, can you go to
19 {D74/1104.1/1}. You can see that in September 2008 —
20 A. Hold on, sorry.
21 Q. That’s okay.
22 A. We are at sixes and sevens here.
23 Q. No, we are. {D74/1104.1/1}.
24 A. I have a passport.
25 Q. Oh dear. It means you can fly back to the Isle of Man
221
1 suggested?
2 A. It struck us as being extremely odd.
3 Q. Right. Then a bit further on down, second paragraph up
4 from the bottom, you say:
5 «Where a company uses a significant amount of debt,
6 it is custom and practice to have an agreement, often
7 referred to as an ‘intercreditor Deed’, detailing out
8 the priority of any potential claims that lenders may
9 have over a business, in the event of such a claim or
10 claims. It is a very complex document by its nature,
11 and can take weeks to put together.»
12 Then you recommend that Clyde & Co be asked to start
13 to work on that sort of document, don’t you?
14 A. Mm hmm.
15 Q. It’s right, isn’t it, that an intercreditor deed is
16 a sort of document — if you are a borrower that has
17 lots of different borrowings from different sources,
18 an intercreditor deed is a way of setting those out
19 transparently to show any particular lender where they
20 come in the pecking order. Would that be a fair
21 summary?
22 A. That’s a very good summary, yes.
23 Q. Thank you. It is right, isn’t it, that in the event OMG
24 or Dr Arkhangelsky did not go ahead and seek to
25 have an intercreditor deed drawn up?
223
1 then, I think that’s lucky, isn’t it. On screen,
2 {D74/1104.1/1}.
3 A. Shall we refer to the screen?
4 Q. Yes, why not.
5 A. Yes.
6 Q. Can you see on 19 September 2008 you sent an e-mail to
7 Mr Parker, and you said:
8 «Keith, got your message but have not rung you back
9 for reasons I will explain.»
10 Can you see that?
11 A. Yes.
12 Q. That’s a rather cryptic line, do you know what you meant
13 by that?
14 A. What?
15 «Got your message but have not rung you back for
16 reasons I will explain.»
17 Q. Yes.
18 A. Haven’t a clue —
19 Q. All right.
20 A. — to be honest with you.
21 Q. That’s all right. I wasn’t sure if there was any
22 particularly relevant factor there.
23 Do you see the next line:
24 «Do you have updated debt schedule for the Group?»
25 Can you see that at the foot of the page?
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1 A. I was never terribly good at English. Yes.
2 Q. Then Mr Parker seems to reply 20 September 2008, I think
3 he forwards your e-mail within OMG, and I am not sure
4 you were actually privy to this, but it looks like it
5 has been forwarded with OMG and he says to
6 Mr Arkhangelsky and others:
7 «Can this schedule of debt be updated? Thanks.»
8 Can you see that?
9 A. Yes.
10 Q. Can you see at the top of the page, it looks as though
11 again, I don’t think you were on this e-mail but it is
12 just background really, Daniil Dubitskiy,
13 25 September 2008, to Mr Parker, copied to
14 Dr Arkhangelsky, subject, forward of the debt schedule.
15 Attachment, «Oslo Marine Group Debt Portfolio as of Sep
16 2008.»
17 Mr Dubitskiy seems to have said this:
18 «Keith, please find attached the updated debt
19 portfolio. Please note that Norwood, Petroles and Soyuz
20 companies are not officially affiliated with OMG.»
21 Can you see that?
22 A. Mm hmm.
23 Q. So it looks as if round about that time
24 in September 2008 you had sought an updated debt
25 schedule for OMG and there had been some internal
1 A. Yes.
2 Q. And you were led to believe by OMG that those were all
3 debts of OMG companies as at September 25, 2008.
4 A. Correct.
5 Q. And you were led to believe that the guarantees that
6 were listed in the second to last column were all
7 guarantees that had been given or entered into by the
8 said guarantors as at 25 September 2008?
9 A. Well, I was only really concerned with the ones that
10 encumbered physical assets.
11 Q. Yes.
12 A. So I didn’t pay much attention to the others.
13 Q. But you had been led to believe by OMG that the debts
14 and guarantees that were set out in this schedule were
15 valid or were binding, that they were real debts and
16 guarantees of OMG companies or Dr Arkhangelsky?
17 A. I think I would be perjuring myself if I said that I had
18 100 per cent confidence in what’s written down on this
19 sheet.
20 Q. No, but you had no basis for thinking — OMG did not
21 give you to think that any of these debts or guarantees
22 were not real debts or guarantees of the particular
23 debtor or guarantor as set out in this schedule?
24 A. I was concerned that, if anything, this was
25 an understatement of their indebtedness.
225 227
1 attempt at OMG to address your request. That’s the
2 context in respect of which I want to take you to
3 the document that I did earlier, and I apologise for
4 taking you round the houses a bit. {D74/1096.1/1},
5 because it looks as if on 22 September 2008 — it’s
6 a bit hard to get the dates here. This seems to be
7 earlier, in fact?
8 A. I asked about three times. I think, from recollection,
9 I got three separate — February, August and September,
10 I think.
11 Q. I think that’s right, and you’ve been sent a debt
12 schedule, and I think if you go then, I think, the debt
13 schedule itself, I think is at {D74/1101/1}.
14 A. 1101?
15 Q. Yes, {D74/1101/1}. Can you see that? It can be blown
16 up a bit on the screen.
17 A. Yes.
18 Q. Does that look like a version of the debt schedule for
19 OMG that you would have got around about September 2008?
20 A. Indeed.
21 Q. Is that familiar to you?
22 A. It is absolutely, yes.
23 Q. And you were sent, weren’t you, by OMG in answer to your
24 request for information on what debts OMG group
25 companies had at that stage?
1 Q. So you had no doubt that these debts and guarantees,
2 that they were valid as at this time?
3 A. Let’s say, as you and I have discussed during the course
4 of today, the flow of financial information was
5 unreliable and, therefore, I would not like to be quoted
6 as saying that I have absolutely 100 per cent belief in
7 the listing of guarantors or anything else on this
8 sheet.
9 Q. But you were led to believe by OMG that this was
10 a schedule of OMG group debts, as at 25 September 2008?
11 A. Yes, but Daniil was a business development manager.
12 I noticed that this information never came from the
13 finance director.
14 Q. But it looks as if from an earlier e-mail it was copied
15 to Dr Arkhangelsky, though, wasn’t it?
16 A. Mm hmm.
17 Q. You have no reason, do you — nobody led you to think
18 in September 2008 that any of these guarantees that are
19 listed in this schedule, that any of those were not
20 actually actual guarantees? No one led you to believe
21 that, did they? No one said: actually, we filled the
22 column in but it wasn’t a guarantee. No one said that
23 to you, Mr Bromley-Martin, did they?
24 A. No, they didn’t, they certainly didn’t but on the other
25 hand they didn’t say —
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1 Q. Forget arguing the case for Dr Arkhangelsky,
2 Mr Bromley-Martin, and just think about the question.
3 Don’t try and argue the case and hold the line for him.
4 You asked for an OMG group debt schedule, didn’t you, in
5 September 2008; yes or no?
6 A. I did.
7 Q. You were sent the document we see at {D74/1101/1},
8 weren’t you?
9 A. I did, indeed, yes.
10 Q. And when you received this document, you were given to
11 understand that the debts set out in this debt portfolio
12 were actual debts of the said borrowers as at that date,
13 weren’t you?
14 A. That was the implication, yes.
15 Q. And you were also given to understand that the
16 guarantees set out in this schedule were actual
17 guarantees of the said guarantors as at that
18 date, September 25, 2008, weren’t you,
19 Mr Bromley-Martin?
20 A. To the extent that they were written on this sheet of
21 paper, yes. Because we never drilled down into the
22 facts.
23 MR LORD: Thank you, Mr Bromley-Martin.
24 MR STROILOV: My Lord, I do think I need a 10-minute break
25 to take instructions because obviously in our team the
1 for everyone’s convenience, so I would hope it won’t
2 take too long, but I need 10 minutes.
3 MR JUSTICE HILDYARD: Well, your fate hangs in the balance,
4 Mr Bromley-Martin. If they feel they need more time in
5 order to hone their questions, I am afraid that means
6 another night in London for you. If, on the other hand,
7 they feel they can —
8 A. That’s no problem, sir.
9 MR JUSTICE HILDYARD: Right.
10 MR STROILOV: Yes, my Lord.
11 MR JUSTICE HILDYARD: 4.45. If you need longer, you must
12 let me know.
13 MR STROILOV: Yes, my Lord, I am grateful.
14 (4.35 pm)
15 (A short break)
16 (4.46 pm)
17 Housekeeping
18 MR STROILOV: My Lord, I know it is an unusual advantage we
19 are asking for and an inconvenience for everyone,
20 including our witness, I think given that the internet
21 connection was interrupted throughout the day, I think
22 we need to re-read the transcript, especially
23 Dr Arkhangelsky needs to re-read the transcript
24 overnight and consider our re-examination to take place
25 tomorrow morning. I don’t expect it will be longer than
229 231
1 person who understands a lot of the things discussed
2 today is Mr Arkhangelsky, and I’m concerned that of
3 course, it wasn’t going — the videolink wasn’t
4 operating terribly well, so I need to check he has
5 some — he has really managed to catch up with
6 everything. So I don’t think I’m having a massive
7 re-examination. I’m not sure about your Lordship’s
8 questions. I don’t expect I will take more than 10
9 minutes, but before that, I would need 10 minutes to
10 take instructions.
11 MR JUSTICE HILDYARD: Right. So you are proposing that —
12 well, you are not proposing we go into tomorrow; you are
13 proposing that we should wait — that we rise for 10
14 minutes or so and then we conclude with the witness
15 today; is that right?
16 MR STROILOV: If that’s all right with your Lordship, yes.
17 MR JUSTICE HILDYARD: If you can do that, well and good.
18 MR STROILOV: Well, my Lord, subject to what I may discover,
19 if I am told there is a mass of questions which will
20 take another hour, that’s a different matter, but
21 I don’t anticipate that at the moment.
22 MR JUSTICE HILDYARD: I can’t remember whether it was ever
23 envisaged that Mr Bromley-Martin might go into tomorrow.
24 MR STROILOV: It was envisaged. Of course, everyone would
25 want to try and avoid that for the witness’s sake, and
1 half an hour to be on the completely safe side, but
2 I think that’s what we would request.
3 MR JUSTICE HILDYARD: Mr Bromley-Martin, you can confirm
4 that that is doable by you?
5 A. Indeed, I was warned I might have to stay tomorrow so,
6 flight-wise, I am in good shape.
7 MR JUSTICE HILDYARD: Well, Mr Lord, it does slow things up
8 further, but I must say that I think it not unwise for
9 them to review the transcript.
10 MR LORD: That’s fine. My Lord, I wonder if it could be
11 made clear to Mr Bromley-Martin that he is not to
12 discuss the case with anybody overnight, absolutely
13 anybody.
14 MR JUSTICE HILDYARD: Yes. Mr Bromley-Martin, for your
15 reassurance, it is the warning that is given to every
16 witness but it is nonetheless important that you must
17 not discuss this case at all with anybody. Enjoy
18 yourself, rather than going over all this.
19 MR LORD: And there must be no communication with him
20 either. There must be no communication at all, really.
21 He is in purdah, effectively. He can’t be e-mailed, he
22 can’t be contacted in any way. I am sure he understands
23 that.
24 MR JUSTICE HILDYARD: I know that by communication he
25 understands that it is active, passive, through the
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1 airwaves, on the telephone, in any way, your enjoyment
2 is not to be impinged upon.
3 A. Message received and understood, your Lordship.
4 MR JUSTICE HILDYARD: Now, timing, as I say, I warned
5 against falling into the habit, and yet I always
6 encourage us doing so. I am glad we did, in a way, as
7 the afternoon proceeded I was congratulating ourselves
8 on starting at 10.00 am but in the end it wasn’t quite
9 enough. What time do you wish to start tomorrow?
10 MR LORD: I would have said 10.00, my Lord, should be all
11 right.
12 MR STROILOV: My preference would be for 10.30 simply
13 because I also need time to prepare for Mr Sklyarevsky,
14 there is still quite a lot —
15 MR JUSTICE HILDYARD: What is the next one, Mr…
16 MR STROILOV: There is Mr Nazarov, who is here, and I don’t
17 think I copied my update on disclosure to your clerk.
18 (Handed).
19 I’m very grateful, that is the e-mail I sent to RPC
20 this morning, so perhaps if you read that just so that
21 your Lordship is aware.
22 I think Mr Lord has indicated some concerns that he
23 might want to ask some questions of — well, I will just
24 give way to Mr Lord on whatever he may want to say.
25 MR JUSTICE HILDYARD: Yes. Do excuse us. This is nothing
1 morning, which probably wouldn’t take into account this
2 material — it may or may not — and then if, in fact,
3 further questions would have arisen as a result of
4 material that was disclosed only today, or maybe even
5 not yet disclosed but to be disclosed, I would reserve
6 my position in case I needed to have asked some
7 questions of Mr Nazarov, and the court needed to revisit
8 that cross-examination.
9 So I wasn’t proposing to —
10 MR JUSTICE HILDYARD: How and when?
11 MR LORD: I don’t know, my Lord. I am the innocent party
12 here. I have a witness coming to cross-examine. I have
13 done it on one basis. I am getting extra disclosure.
14 I don’t know what’s in there.
15 MR JUSTICE HILDYARD: No, I quite — I’m asking, in a sense,
16 a despairing question.
17 MR LORD: Well, my Lord, that’s why ordinarily I would say
18 this witness should be stood out, it is not really
19 acceptable, which it isn’t, to have, after all this
20 preparation, to have this disclosure coming in in this
21 way from what is Mr Arkhangelsky’s lawyer. It should
22 have happened a long time ago and we shouldn’t be taken
23 by surprise by it.
24 But I was proposing, as a pragmatic solution, to do
25 the best I could on the material I have, as best I can,
233 235
1 you need concern yourself about.
2 MR LORD: Your Lordship will know that we got some
3 disclosure on Sunday evening from Mr Nazarov’s files via
4 Mr Stroilov. Yesterday we got some more disclosure, as
5 set out in this e-mail — actually this morning, sorry,
6 we got this disclosure. We haven’t yet had a chance to
7 look through it. I haven’t had a chance to look through
8 it.
9 I think Mr Stroilov is saying in this e-mail, and if
10 not, he confirmed to me today, that whilst there may be
11 no more documents to disclose from within the categories
12 of the court order, there may be some more documents
13 that would fall within the standard disclosure, and
14 there is a suggestion here that some documents within
15 Mr Nazarov’s archive may be privileged and/or
16 irrelevant, and Mr Stroilov is going to have to review
17 the files.
18 So it appears to be the case that this witness may
19 have — there may be some more relevant documents to
20 come from this source. Obviously I haven’t had a chance
21 to absorb or read the material and the process of
22 disclosure doesn’t seem to have finished. So I am in
23 your Lordship’s hands, but what I was proposing to do
24 was to cross-examine Mr Nazarov as best I could on the
25 material that I have been able to review up to tomorrow
1 but if there were other documents I haven’t had time to
2 consider and take instruction on, then I would have to
3 reserve my position on that, but that was going to be my
4 suggestion, and then Mr Nazarov would have been
5 cross-examined tomorrow morning on that basis.
6 But if Mr Stroilov says that there could be more
7 documents coming and I won’t have those by even
8 tomorrow, then your Lordship may think that that puts
9 a different complexion on things.
10 I mean, really, my Lord, the explanation really is
11 a matter for Mr Nazarov. He is in court at the back,
12 and one of the points your Lordship raised earlier this
13 week was whether he should come and confirm today what
14 is going on, really, if there are more documents and
15 what’s happening. I don’t really know what the position
16 is.
17 But that was my intention: to try to cross-examine
18 him tomorrow on the material that I have been able to
19 address up to last Sunday, the Sunday just gone, to
20 reserve my position on this further material that’s come
21 today, whether it needs to be translated, I have to read
22 it, take instructions and so on, it is really very, very
23 late, but it may be that there isn’t really much in this
24 further material, it may be that no questions arise or
25 that matters speak for themselves or it can be done by
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1 videolink later if necessary and there are other ways, 1 I remember correctly, the problem is, the fault is ours,
2 and I am not anxious at all to delay the timetable, hold 2 really. At the time we were given standard disclosure
3 up Mr Sklyarevsky, or in any way, hold things up. 3 in 2013, we simply didn’t think of Mr Nazarov as
4 So I would rather try and do the best I can but on 4 a custodian, and that’s clear in our disclosure
5 the basis that if something important emerges from the 5 statement that —
6 woodwork, your Lordship would be receptive to 6 MR JUSTICE HILDYARD: Leave that for the moment, but you
7 considering how that might be addressed. 7 have a whole cohort of documents in addition to
8 MR JUSTICE HILDYARD: Mr Stroilov, what is the position: 8 the documents of the specific disclosure which you know
9 Mr Nazarov appears to have given you an assurance on 9 of but have not yet reviewed; is that right?
10 a basis which is unclear, given the performance thus 10 MR STROILOV: Exactly, my Lord, yes.
11 far, that the specific disclosure order that I made 11 MR JUSTICE HILDYARD: And you need to review those for
12 in September or October last year has been complied 12 relevance and for privilege?
13 with. 13 MR STROILOV: Indeed, my Lord, yes.
14 MR STROILOV: Yes. 14 MR JUSTICE HILDYARD: And when will you have done that?
15 MR JUSTICE HILDYARD: Have you satisfied yourself of that? 15 MR STROILOV: That’s the difficulty, because obviously I’m
16 MR STROILOV: Yes, well — 16 going to work very close to 24/7 on cross-examinations.
17 MR JUSTICE HILDYARD: So far as you are able? 17 MR JUSTICE HILDYARD: When will you be able to do that?
18 MR STROILOV: — it has been complied with today not in 18 MR STROILOV: Well, realistically, my Lord, I am afraid
19 a very satisfactory way, as you have seen we haven’t 19 I think it will be during the Easter vacations, but not
20 really disclosed it by list. Literally I did it as soon 20 sooner. Obviously it would have been a task — a very
21 as we could, I simply e-mailed through the documents. 21 urgent task for one of the people sitting behind me, but
22 As far as standard disclosure is concerned, I do 22 there is no one.
23 accept that we are at fault and it is an unsatisfactory 23 MR JUSTICE HILDYARD: My sympathy with you is modified by
24 position. 24 the fact that I have been drilling on about documents
25 MR JUSTICE HILDYARD: I am going to come to fault later, 25 from Mr Nazarov for months and I have repeated the
237 239
1 I just want to know what the position is. You have
2 checked, so far as you can tell, and on what you have
3 been told by Mr Nazarov, that all documents within the
4 specific categories of disclosure which I ordered
5 in September/October of last year have been provided?
6 MR STROILOV: Yes, my Lord.
7 MR JUSTICE HILDYARD: Subject to any claim for privilege?
8 MR STROILOV: No, it was based on a waiver of privilege in
9 the first place.
10 MR JUSTICE HILDYARD: I’m sorry, you are quite right, I’m
11 sorry, yes.
12 MR STROILOV: On the basis of the information I have, it has
13 been complied with.
14 MR JUSTICE HILDYARD: And you were provided with the
15 documents on Sunday; is that right?
16 MR STROILOV: I have been provided with some documents on
17 Sunday. There was a logistical problem. He was able to
18 scan only a limited amount of documents —
19 MR JUSTICE HILDYARD: I see, so when he arrived yesterday he
20 brought some more documents.
21 MR STROILOV: Indeed, and he brought, really, a hard copy
22 file which I have with me which I caused to be scanned
23 immediately and then disclosed by e-mail.
24 But apart from that, during his searches for,
25 really, some of the other categories, and — well, if
1 warnings on pretty much every occasion that his name has
2 been mentioned. So whereas if it came as a bolt out of
3 the blue or some exceptional event, I might be
4 sympathetic, I have very, very little sympathy, if any,
5 in the particular circumstances. I don’t know whether
6 Mr Nazarov speaks English or is having this translated,
7 but the fact is that it is a very dismal situation,
8 especially having regard to the fact that he is
9 a lawyer, he was Dr Arkhangelsky’s lawyer, and his
10 performance may tell against his client. It is a very
11 dismal situation.
12 MR STROILOV: My Lord, I do accept the criticism, and I am
13 not really asking for sympathy, I am asking for some
14 consideration of what is realistic.
15 MR JUSTICE HILDYARD: When can Mr Nazarov come back if he is
16 required to do so?
17 MR STROILOV: I do hope so, and we would certainly do what
18 we can to cause him to call back.
19 MR JUSTICE HILDYARD: I will ask Mr Lord to think of a time
20 when, assuming that you would be able to do these, as
21 you say, after Easter, when he would come back, Mr Lord
22 and his team having had a chance to review those
23 documents.
24 Come back he will have to in order to speak to any
25 documents which he failed to produce and on which
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1 Mr Lord has questions. 1 INDEX
2 MR STROILOV: I accept that, my Lord. 2 PAGE
3 I think — I still think that Mr Lord’s suggestion, 3 MR ROBIN BROMLEY-MARTIN (Sworn) ………………….1
4 I would be in favour of it, that he does cross-examine 4 Examination-in-chief by MR STROILOV ………..1
5 on what he — 5 Cross-examination by MR LORD ………………2
6 MR JUSTICE HILDYARD: You are quite right. I didn’t make 6 Housekeeping …………………………………231
7 myself clear. I am going to grab Mr Lord’s suggestion 7
8 that we carry on with the evidence of Mr Nazarov 8
9 tomorrow, and when I say «grab», that is because I am 9
10 grateful to Mr Lord for not insisting on having the 10
11 entire pack of cards before him when he cross-examines. 11
12 MR STROILOV: So am I. 12
13 MR JUSTICE HILDYARD: But I want there to be no doubt, and 13
14 I want you to get Mr Nazarov’s assurance, once you have 14
15 made a time, that there will be no problem in his 15
16 returning, because if it’s not necessary, well good, but 16
17 if it is necessary, I would not like the situation where 17
18 Mr Lord has proceeded on a certain basis and had 18
19 evidence given on that basis, and for there to be other 19
20 documents lurking which might have shed light and for 20
21 the witness not to be available for whatever reason. 21
22 MR STROILOV: Indeed, my Lord. 22
23 MR JUSTICE HILDYARD: Right. 23
24 MR STROILOV: I’m grateful. 24
25 MR JUSTICE HILDYARD: Good. Well, back to the 10.00 or 25
241 243
1 10.30. You wish further time to prepare, do you?
2 MR STROILOV: I do, I am afraid. Obviously I know it is my
3 fault that Mr Bromley-Martin wasn’t here yesterday, but
4 really when I agreed to move Mr Sklyarevsky to Thursday,
5 I assumed that today would be the reading day, so I am
6 in a bit of a …
7 MR JUSTICE HILDYARD: I will give you until 10.30 am, but we
8 will move forward speedily, I hope. I am so sorry you
9 have to stay. 10.30 am tomorrow.
10 (5.00 pm)
11 (The court adjourned until 10.30 am on
12 Thursday, 3 March 2016)
13
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16
17
18
19
20
21
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abandoned (1) 104:14 ability (1) 170:10 able (26) 16:13 60:4,6
63:11 77:23 93:25 101:5 106:18 107:10 111:14 134:20 140:15 141:22 166:18 171:1 180:2 184:21 190:9 221:7 223:9 234:25 236:18 237:17 238:17 239:17 240:20
abortive (1) 215:9 abouts (1) 150:22 abreast (1) 211:3 absence (1) 180:15 absolute (1) 78:7 absolutely (16) 67:8
112:8 124:4 133:14 143:16 151:20 152:23,23 174:21 176:8 181:10 198:25 216:14 226:22 228:6 232:12
absorb (2) 31:23 234:21
absurdly (1) 86:10 accept (7) 56:5 97:15
125:11 145:18 237:23 240:12 241:2
acceptable (3) 37:6
160:15 235:19
accepted (3) 15:19 136:22 189:8 accepting (1) 203:12
access (1) 164:15 accord (1) 13:12 accords (1) 26:4 account (16) 4:3 32:6
36:24 111:7 134:13 135:8,22,25 159:11 159:11,18 160:17 160:18 167:22 197:13 235:1
accountant (1) 14:23 accountants (1)
109:24 accounting (3) 15:19
109:1 134:19 accounts (34) 15:3,8
15:13,20,23 16:1,5 16:8,12,14,20 18:21 19:1,3,9,13 20:4,10 21:15,18 21:19 23:2,8,9 24:6 26:10 36:24 37:24 101:1 109:22 160:17 178:22,24 179:13
accrue (1) 98:10 accuracy (2) 148:16
177:8 accurate (6) 16:11
19:18 33:16 157:18 187:7 191:16
achievable (2) 66:3
72:23
achieve (2) 127:16 219:25
achieved (1) 170:24 achieving (1) 197:18 acknowledged (1)
132:22
acquire (7) 3:20 4:18
142:17 143:2,18 142:2 160:1 183:5 America (1) 113:10 64:12 70:7 79:23 70:10,24 88:17 145:10,21 149:8
145:15 148:19 233:7 American (2) 71:19 132:8 226:3 112:5 139:24 150:6 151:8 156:7
acquired (21) 7:2,4,11 agencies (3) 201:14 170:5 apologised (1) 126:10 141:22 144:14 156:10,11 157:1
8:3,8 11:9,13 12:2 201:20 202:16 amortisation (2) apparent (1) 172:15 146:13 150:11 161:7
12:10 18:9,17 ago (18) 21:4,9 24:23 108:4 110:3 apparently (1) 131:16 163:18 172:20 asset-backing (1)
20:19 25:12 27:2 26:16 28:18 76:17 amount (16) 3:20 appear (7) 14:19 173:8,12 177:1 150:4
45:25 46:12 53:14 84:6 85:24 86:19 4:18 41:5 44:10 37:14 138:15 180:5 181:2 192:16 assets (12) 95:7 108:8
65:4 143:18 146:7 89:10 91:9 120:1 62:1 69:2 73:23 178:10,17 212:15 205:3 206:8 207:7 133:11 145:25
147:16 122:1,15 123:14 74:5 100:5,6 105:1 217:24 213:13 217:7 191:18 214:3
acquisition (29) 3:2 138:25 148:20 109:15 211:21 appeared (4) 16:6,7 222:24 225:6,14 216:20,24 219:21
6:21 8:24 9:2 13:16 235:22 214:23 222:5 29:12 116:16 227:16 228:15 220:22 223:14
14:16 17:22 18:1 agree (37) 3:2,15 4:10 238:18 appearing (1) 81:7 229:1 230:2 231:23 227:10
20:12 25:23 26:20 13:17 24:5 26:19 analysed (2) 85:14 appears (8) 10:10 Arkhangelsky’s (10) assist (5) 10:9 39:20
27:1,6,7,22 28:20 26:25 27:5 33:19 86:3 28:21 36:19 128:22 10:18,19 11:2 42:16 127:8,24
49:25 65:7 143:9 36:11 38:25 39:6 analysis (17) 15:10 129:13 213:16 13:13 26:5 30:13 assisted (1) 43:4
144:8 145:9,17 41:21 46:13 49:18 61:15 62:9,10 234:18 237:9 191:22 205:6 associated (4) 34:12
146:13 147:23 55:10,15 60:15 67:15 78:5 87:17 apples (2) 108:22 235:21 240:9 41:9 117:1 147:7
148:1,11 149:21 96:10 108:19 91:5 106:19 107:22 114:20 Armageddon (1) association (1) 117:6
161:6 175:23 111:25 121:2,7 107:23 125:16 applied (2) 20:11 153:2 assume (11) 59:3
acreage (1) 3:9 135:13 136:10 134:10 193:21 207:19 arose (2) 192:3,11 94:13 105:11
act (3) 33:10 195:1 137:4,24 150:13 198:20 199:8,8 apply (1) 90:5 arrange (1) 133:17 162:15 165:1
203:24 151:11 155:19 and/or (2) 193:17 appoint (2) 199:4 arrangement (2) 166:23 167:1,5,7,9
active (1) 232:25 158:11 164:22 234:15 208:7 173:15,25 167:9
activities (2) 199:7 165:2 166:19 animals (1) 153:18 appointed (2) 196:2 arrangements (1) assumed (3) 24:20
211:5 167:24 203:4 annual (1) 99:4 203:14 173:11 61:9 242:5
activity (1) 188:3 217:14 annum (30) 66:5 appointing (1) 206:24 arranger (1) 203:25 assuming (7) 14:13
actual (10) 8:24 16:1 agreed (11) 63:15 69:15 71:21,22 appointment (3) arranging (2) 195:2 79:5 101:24 102:2
44:5 103:5 105:9 121:14 142:4 72:20 74:22 75:5 191:25 192:1 203:9 104:9 165:1 240:20
130:20 190:5 159:19 192:5,9,10 76:19 77:1 78:4,16 203:13 arrive (1) 103:20 assumption (1)
228:20 229:12,16 193:16 200:14 80:13 81:5,16,17 appreciably (1) arrived (2) 37:24 126:14
acute (1) 120:25 203:23 242:4 82:5 83:23 84:2,8 123:15 238:19 assumptions (17)
add (3) 49:25 90:18 agreeing (1) 203:13 85:8 86:2,18,24 appreciate (3) 23:22 arse (1) 191:6 33:18 67:9,13
121:10 agreement (8) 12:15 87:1,12 89:7 94:14 161:20 196:14 as-developed (1) 118:25 119:11,12
add-ons (1) 127:16 13:22 34:19 37:21 94:17 95:20 104:12 appreciated (3) 25:3 98:25 122:20 125:15
added (2) 62:2 81:2 41:9 98:9 177:15 answer (50) 1:17 10:8 136:24 207:13 as-projected (1) 104:5 133:18 168:2,7
addition (2) 118:18 222:6 27:12 29:23 42:7 appreciation (1) ascent (1) 173:4 183:12 186:21,24
239:7 agreements (2) 41:8 42:10 49:18 53:2 110:14 ascertain (1) 148:16 187:1,4 194:13
additional (7) 50:6,11 164:13 62:3,18 69:17 approach (5) 121:25 ascertained (3) 123:7 assurance (3) 200:4
121:10 141:11 agrees (1) 203:17 82:11 85:16,19 129:17 132:23 166:9 167:25 237:9 241:14
221:7,10 223:15 Ah (1) 79:19 86:6,7 91:8,24 201:13 213:19 aside (1) 166:23 assured (1) 163:2
address (5) 13:20 ahead (11) 34:15 97:15,22 105:17,18 approached (3) 38:7 asked (36) 14:4,6 28:7 attach (2) 131:18
104:22 127:21 40:25 60:13 169:19 107:15 115:8 116:7 38:18 78:8 28:10 29:12 30:17 217:10
226:1 236:19 206:8 207:7 209:16 121:22 124:13 approaches (1) 3:12 30:19 39:23 49:14 attached (1) 225:18
addressed (3) 104:23 209:22 214:6 127:4,6,19 129:18 appropriate (5) 66:8 68:3 125:4,8,17,20 Attachment (1)
119:21 237:7 215:24 222:24 130:7,12 136:4 116:4 120:9 130:18 127:4 130:4 137:21 225:15
adequately (1) 129:1 aid (2) 11:13 130:13 138:25 139:4,24 195:14 141:17 147:8 148:4 attempt (3) 129:14
adjacent (1) 58:6 aide-memoire (4) 151:24 152:5 approval (1) 60:8 163:20 175:22 155:19 226:1
adjourned (1) 242:11 88:10 131:7,7 155:18 156:3 approvals (1) 59:18 181:6 182:2,9 attend (1) 172:25
adjournment (5) 184:23 162:22 165:11 approve (1) 59:13 184:19 186:14,23 attention (2) 184:4
63:12 73:8 128:9 aiming (1) 4:5 166:12,13 167:15 approving (1) 38:6 189:11,17 211:3 227:12
128:13,17 airwaves (1) 233:1 176:3,7 202:10 approximate (1) 212:12 222:12 attitude (2) 70:13
adjudicate (1) 127:8 alarm (1) 215:4 226:23 110:25 226:8 229:4 235:6 128:5
adjust (1) 37:15 albeit (1) 169:19 answered (3) 42:19 approximately (3) asking (31) 5:1 8:13 attitudes (1) 182:20
adjustment (2) 72:2,4 algorithm (1) 197:17 149:24 152:6 11:22 12:3 65:14 21:24 24:23 26:14 attractive (1) 221:9
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admitted (2) 128:21 alia (1) 159:10 105:16 121:23 apropos (1) 183:25 82:4 86:4 95:15 auditor (1) 209:5
129:10 alleged (1) 40:18 165:12 archive (1) 234:15 97:20 99:9 102:8 auditors (1) 21:17
advance (2) 42:2 allegedly (2) 8:8 answers (10) 9:8,16 area (1) 48:19 104:11,22 110:19 August (11) 6:14
128:4 166:24 30:13 32:21 49:21 areas (2) 76:12 181:11 116:2 121:25 188:13 210:5,13
advantage (1) 231:18 allow (2) 36:22 130:17 175:5,8,10 arguable (1) 110:1 124:18 149:15 212:18 213:4 217:6
advantages (1) 209:15 141:12 196:4 argue (4) 67:23 163:21 171:3 179:5 217:25 218:6 221:2
adverse (2) 216:15,16 allowance (3) 107:13 anticipate (1) 230:21 117:19 139:23 186:20 187:4 198:2 226:9
advice (4) 34:18 35:7 108:6,13 anticipated (1) 130:6 229:3 231:19 235:15 authentic (1) 14:13
35:13 205:10 allowances (1) 110:4 anticipation (1) 130:4 arguing (4) 4:11 39:13 240:13,13 authenticated (1)
advised (2) 197:23 allowed (3) 129:23 Antwerp (1) 93:4 55:5 229:1 aspect (2) 98:19 194:4
198:10 191:3 214:5 anxious (1) 237:2 argument (3) 101:4 103:25 authorities (1) 41:10
adviser (1) 209:6 allowing (1) 95:5 anybody (9) 19:7 127:7 166:13 aspects (4) 44:2 automatically (1)
aerial (2) 51:13,15 allows (1) 128:24 41:17 43:1 152:20 argument’s (1) 95:19 100:19 126:21 189:15
affect (1) 211:4 alongside (1) 65:10 163:14 189:13 argumentative (1) 220:11 autumn (1) 164:20
affiliated (1) 225:20 alter (1) 106:18 232:12,13,17 125:3 aspersions (1) 204:12 available (7) 15:13
afloat (1) 134:21 altered (1) 106:2 anyway (3) 63:3 70:22 arisen (1) 235:3 assessing (1) 60:18 16:9 19:10 76:20
afraid (10) 30:25 31:1 alternative (2) 131:19 181:14 Arkhangelsky (54) assessment (2) 8:11 179:2 223:14
40:10 49:10 101:15 214:11 apart (9) 47:17 84:10 4:24 8:21 12:1 76:25 241:21
129:25 177:4 231:5 altogether (1) 201:21 91:23 148:3 194:8 27:24 28:6,17,25 asset (31) 3:13,15 4:6 availed (1) 66:22
239:18 242:2 amend (1) 100:7 194:10 212:7 29:3,6,12 30:16,23 4:8,18 39:20,24 average (13) 66:4
Africa (6) 32:7 117:3,8 amended (4) 67:9 223:12 238:24 31:13 33:20 34:9 41:17,18,25 42:5 71:17 90:11 93:14
117:16 187:14 196:6,13,24 apocalyptical (1) 34:21 36:9 39:1 42:13,14,18 43:10 93:17,21 115:21,22
190:23 amendments (2) 161:14 60:3 63:23 64:11 50:10 132:24 137:6 118:1,4,20 121:3
afternoon (5) 104:8 197:7,10 apologise (6) 53:6 64:14 66:13 70:8 143:9,10 144:10 197:16
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245
March 2, 2016 Day 20
averaged (2) 118:6,6 avoid (3) 42:25
220:22 230:25 avoidance (1) 203:12 aware (9) 4:24 8:24 34:8 42:14 66:22
135:1 139:3 215:9 233:21
awareness (1) 212:6
B
b (3) 69:8 202:3 220:17
back (55) 11:22 16:4 21:16,24 22:5 23:8 24:22 34:6 41:22 45:10 50:7 54:10 64:11,19 69:24 84:17 86:13 88:2 103:16,16 106:22 106:23 112:11 113:18 114:12 115:8 116:2 117:20 118:15,16 127:25 133:16 142:24 147:11 148:9 160:8 160:25 164:22 171:1,3 173:15 175:4,18 186:14 202:3 204:20 223:25 224:8,15 236:11 240:15,18 240:21,24 241:25
backed (4) 95:6 145:23,25 158:18
background (2)
215:19 225:12 backward (1) 84:7 backwards (1) 86:23 bad (1) 191:10 badly (1) 148:21 balance (11) 4:1 32:6
36:24 37:2,25 43:15 143:9 144:9 159:11,18 231:3
bank (39) 3:12,14 7:22 11:14 37:7,19 37:23 38:12 41:23 107:18 125:21 149:5,17 153:1,5 153:10 155:5 156:22 157:5,5 159:20,23 164:5,23 166:5 172:10 187:13 188:12 190:13 195:2 200:16 202:2,3,4 204:7 208:11 210:18 219:11,18
bank’s (2) 3:21 8:11 banker (1) 153:15 bankers (4) 40:9
152:11 157:12 161:17
banking (2) 152:21 186:17
banks (65) 2:21,22 4:2 6:7,11,13,18 16:7 17:14,16 18:24 30:17,18 31:15 36:22 38:7,18 40:5 98:9 109:5 124:22 125:12 126:9 134:25 137:25 138:23 139:3,20,21 140:3,6,7,8,8,16 148:10 153:22 156:21,25 157:9,14
160:15 165:3 98:22 103:15 136:25 34:8,22 35:8,15
168:17 172:9 berths (5) 65:25 74:15 137:5 140:12 36:16 37:18 39:12
187:12,21 188:7 75:2 76:6,21 144:25 148:18 40:13,17 41:15
189:4 190:16,18,18 besetting (1) 218:18 149:10 151:10 43:17 44:1 47:25
195:5 201:13,18,19 best (11) 2:5,7 41:11 152:2 155:11 164:5 48:13,15,24 49:15
201:23 202:1,15 104:16 122:3 165:5,6 186:8 51:18 52:5 53:1,19
214:13 216:6,8,19 139:25 215:6 borrower (17) 4:18 54:10 56:4 58:17
220:5 223:9 234:24 235:25,25 155:7 156:19 157:7 63:14 64:15 66:6
banks’ (1) 182:20 237:4 157:10 165:4,4,16 67:22 68:16 71:9
barges (1) 115:1 bets (1) 220:1 166:16,16,17 73:10,14 75:15
barrier (1) 98:21 better (9) 5:14 37:4 209:21 215:2,2,11 78:1,12,18 79:24
base (1) 111:18 63:5 71:1 112:24 215:14 222:16 83:17 84:12,17
based (12) 16:10 128:7 132:22 borrower’s (1) 215:17 85:11,19 87:15
33:18 72:13 73:20 140:15 205:17 borrowers (1) 229:12 88:11 89:5 92:17
87:17 88:24 90:14 beyond (1) 184:23 borrowing (19) 99:2 95:25 97:3,7,17,25
93:23 97:2 155:20 big (8) 45:14 50:9 100:9 132:21 98:13 101:19 104:4
206:11 238:8 56:10 138:18 161:5 134:21 136:9,11 105:14 107:12
basic (7) 4:13 120:6 166:24 188:14 140:11,16 144:9,18 108:5 109:3,4
120:10 121:13,17 215:1 149:7 164:19,22,24 110:11,17 112:20
127:15 197:15 bill (1) 110:8 165:16 166:1,16 115:9 119:14 121:7
basically (5) 23:12 billion (9) 11:16 13:7 167:13 223:10 122:22 124:10,14
134:24 186:9 214:1 13:12 14:17 26:2 borrowings (1) 222:17 125:2 126:6,12
214:8 92:13 137:18 boss (2) 191:9,11 127:1 130:11 132:7
basing (1) 72:25 140:14 190:2 bother (1) 83:15 132:9 133:22 136:4
basis (40) 3:8,10 bills (1) 164:20 bottom (10) 29:17 137:17 138:14,24
14:18 36:7 43:22 binding (2) 193:1 51:23 57:22 73:3 139:10,23 142:3,19
46:6 66:21 70:15 227:15 74:8 93:15 101:17 143:19 145:7
77:17 84:9 90:15 Birt (1) 49:12 178:15 193:25 146:11 147:2
111:17 116:9 121:4 bit (32) 27:10 40:14 222:4 148:11 149:6,9
131:24 132:1,5 53:23 54:23 58:8 bought (6) 3:25 8:19 151:3 155:4,17
149:10,24,25 156:5 58:21 77:24 78:24 25:16 49:18 117:16 157:2,4,21 159:16
157:23 168:1 80:22 87:16 110:3 156:7 160:1,9,25 161:13
169:10,22 176:6 110:25 142:1,18 bounce (1) 160:8 161:25 162:14,23
179:15,22 187:10 148:24 161:4 bound (3) 40:4 204:17 163:13 164:4 165:9
196:5,23 200:10 170:14 173:3,8 220:18 165:25 166:11
227:20 235:13 177:9 198:5 202:18 boundary (9) 52:2,11 167:2,21 169:21
236:5 237:5,10 205:19 206:6 52:13,16 53:8 173:7,10 175:6,22
238:12 241:18,19 207:17 209:11 55:14,19 57:9 176:12,25 177:20
batting (1) 86:23 215:20 222:3 226:4 58:24 178:24 181:1
battle (1) 184:18 226:6,16 242:6 bounds (1) 149:12 182:16 183:21
beautifully (1) 181:10 bits (3) 98:1,13 box (1) 72:14 184:25 185:9
becoming (3) 70:24 200:17 brackets (1) 80:24 186:25 192:13
125:2 195:7 black (3) 45:9 52:12 branch (1) 51:25 194:24 196:8 198:2
beg (9) 5:7 44:12 48:3 180:15 brand (1) 51:3 201:10 204:5 207:3
48:4,6 124:25 block (2) 53:12,13 break (10) 54:4,8 207:18 208:12,17
125:9 188:17 blocks (1) 201:20 126:1 128:7 144:15 209:17 211:11
212:21 blown (1) 226:15 183:3,9 201:11 212:17 215:4
began (1) 129:4 blue (1) 240:3 229:24 231:15 217:23 218:16
beginning (8) 15:15 blueish (1) 51:24 breaker (1) 156:22 228:23 229:2,19,23
39:13 51:4 107:15 BNP (42) 38:18 140:18 Bremen (1) 93:4 230:23 231:4 232:3
147:15 167:16,17 169:17,25 189:5,20 Bremerhaven (2) 232:11,14 242:3
203:11 189:24 190:9,12 113:4 181:14 243:3
begins (1) 7:1 191:19 192:2,12,16 bribe (1) 33:9 Bromley-Martin’s (1)
begs (1) 111:2 192:21,25 193:8 bribery (3) 33:10 40:9 130:17
begun (1) 48:14 194:23 195:16,25 40:14 Brothers (2) 158:2,4
behalf (8) 2:13 9:15 196:11 197:2,11 briefly (1) 21:13 brought (4) 63:4
18:22 19:7 198:21 198:19 199:25 bring (7) 44:11 56:21 221:17 238:20,21
198:24 213:16,21 200:1,11,14 202:23 113:10 114:12 bubble (1) 195:5
behave (1) 157:15 203:13,15,22 204:6 164:9 184:4,19 buffer (2) 58:1,2
Belgian (2) 113:7 204:16 206:16 bringing (2) 61:13 build (6) 61:20 98:8
114:25 209:10 214:5,10,19 221:14 103:23 135:1
belief (4) 2:6,7 148:8 215:6,8,25 220:5 British (1) 191:17 188:17,17
228:6 BNP’s (2) 199:21 broad (1) 202:17 building (6) 51:24
believe (23) 8:22 204:12 broader (1) 201:18 56:10 57:7 58:4
15:13 21:12,13 bobbing (1) 83:24 broadly (2) 66:12,12 59:4 195:4
25:8 46:15 86:9 bog-standard (1) broke (1) 114:9 built (8) 40:8 50:25
88:17 120:7 122:11 193:3 broker (1) 160:12 56:11 61:23 69:18
124:21,22 146:12 boilerplate (1) 204:7 Bromley-Martin (200) 70:1 111:8 135:2
163:1 169:11,16 bolt (1) 240:2 1:5,8,9,15,24 2:8 bulk (24) 50:16 61:3
170:17 195:12 bona (1) 174:1 2:11 3:7,12 4:5,15 61:10,13 65:12,16
227:2,5,13 228:9 bonus (1) 54:1 5:1,3,9,21 6:23 8:7 66:8 67:6,18,20
228:20 book (1) 180:15 9:7 10:15 11:1,6,19 68:6,21 89:3 90:19
believed (1) 68:3 borne (1) 122:8 12:13 13:6,10 91:17 94:4,9
believes (1) 155:9 borrow (10) 3:13 14:13 15:9 17:2 113:12 114:23,23
bell (1) 212:1 111:3,14 144:7 18:7 19:21 20:6 114:24 115:3 126:7
bells (2) 215:4 218:8 155:10 157:5 165:4 21:5 22:9,23 23:1 189:9
benefit (2) 130:19 167:8 205:11 24:17 26:4,19 bundle (12) 5:12 17:3
218:5 215:14 27:14 29:9 30:10 51:14 73:10,12
berth (4) 98:16,17,18 borrowed (15) 103:13 31:2,7,10 33:7,19 79:6,10,17 117:23
142:8 175:3 176:16 burden (3) 66:7 97:23
132:21 business (72) 20:13
40:10 61:18,20,23 61:23 62:5 64:22 65:10,18 66:9,10 68:13 69:12 70:21 77:12 83:16 95:5,5 95:10,11 98:10 100:7,16,16,18 103:20,22 104:6 107:5 108:7,11,19 109:7,17 110:19,20 111:4,6,10,14 113:16 115:4,6 127:2 133:8,13 134:17,19,20 135:2 135:9,24 136:11,15 153:13 155:2,9 165:20,23,24 166:25 168:8 173:1 177:4 208:16,20 209:15,20 215:17 222:9 228:11
businesses (2) 154:23 167:20
businessman (1)
111:3
bust (2) 104:14
109:12 butter (1) 52:15
buy (5) 12:15 149:10 155:12 156:10 158:18
buyer (1) 12:18 buying (3) 12:20 145:21 190:17
C
C (3) 106:12 202:3,3
C1/1/11 (1) 10:25 C1/3/1 (1) 1:14 C1/3/11 (1) 199:20 C1/3/12 (2) 169:13
210:2
C1/3/13 (1) 1:23
C1/3/3 (7) 5:23 132:11 136:17 146:5,24 172:20 180:20
C1/3/4 (3) 59:10 158:21,23
C1/3/5 (1) 140:23 C1/3/6 (5) 15:1 72:7
111:25 115:14 159:16
C1/3/7 (7) 63:18 64:16 72:19 94:24 126:4 147:14 189:7
C1/3/8 (4) 181:21 182:19 188:19 189:18
calculated (1) 174:13 calculation (6) 62:25 67:11 68:24 71:25
205:16 206:2 calculations (2) 3:10
67:7
call (9) 1:5 57:14 70:2 89:18 121:13 153:3 184:18 191:4 240:18
called (5) 2:17 23:11 120:23 177:3 190:1
calm (1) 127:4 calmed (1) 171:1 cancel (1) 98:11
cancelled (1) 98:23 capable (4) 74:21 76:7
87:25 91:2 capacity (26) 66:1
68:14 69:1,1,5,11 69:19,22 72:13,22 77:8,23 85:8 87:11 89:8,23 90:1 93:1 95:1,5 97:16 99:7 104:18 105:8 120:25 188:17
capex (3) 97:4 187:6 194:15
capital (23) 7:18 12:20 18:13 22:15,21 48:21 49:1 97:14 97:22,24 98:15 100:22 105:6 107:13,22 108:14 109:9 110:4 150:7 153:23 158:17 184:11 221:18
cards (1) 241:11 career (3) 92:14 165:14 180:13 careful (1) 153:17 carefully (1) 153:6
cargo (6) 50:5 61:3,13 68:21 70:19 72:13
cargoes (12) 44:9 50:16 61:10 65:12 65:16 66:8 67:7,18 67:20 68:6 126:7 189:9
carried (9) 2:16 49:17 87:17 192:25 195:13,18 198:20 199:15 200:5
carry (8) 33:3 45:9 59:23 60:7 131:8 162:22 181:3 241:8
cars (1) 181:11 case (24) 3:19,19
10:18 14:19 24:21 60:2 79:7 92:19 104:16 122:17 139:23 147:8 152:8 168:15 172:6 174:11,20 214:5 229:1,3 232:12,17 234:18 235:6
cases (1) 165:14 cash (20) 41:24 42:11
95:4 96:16 100:20 101:5 105:2 107:8 107:18,19 109:5,11 109:11,13,15 110:9 110:9 135:2 151:14 155:2
cash-generative (3)
95:11 100:24 111:22
cash-negative (1)
165:24 cast (1) 204:11 catch (1) 230:5
categories (4) 118:7 234:11 238:4,25 category (4) 118:3
122:18,24 123:16 cause (5) 5:4 67:23
164:21 214:23 240:18
caused (1) 238:22 causing (1) 150:21 CB (1) 13:25 CB-15 (1) 13:24 CB-16 (1) 13:24
CBRE (2) 191:11,18
Opus 2 International transcripts@opus2.com
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246
March 2, 2016 Day 20
ceased (1) 34:11 checked (6) 16:17 164:1 companies’ (1) 21:19 concerns (15) 2:12 70:16 71:2,10,18 Corporation (1)
cell (1) 183:18 26:15 36:24 37:2 cohort (1) 239:7 company (53) 2:16 138:1,22 139:3,12 71:20 72:1,3,15 186:17
cent (25) 12:22 45:21 151:22 238:2 cohorts (1) 37:24 3:20 12:16,18,21 140:2 188:22,24 74:1 77:11,16 correct (14) 6:9 22:18
70:4 85:10 99:7 checking (2) 14:2 coin (1) 27:17 15:3 20:16,17,24 189:2 213:18 216:5 84:16 86:11 89:2,8 30:6 35:9 112:8
106:16 109:12 26:10 collapse (2) 158:2,4 21:6 23:11,14,18 217:3 218:17 89:13,15,18,23 124:24 134:16
111:19 113:1 checks (4) 199:15 collateral (1) 221:10 23:19,24 24:13,19 220:18 233:22 90:23 91:16,17,20 136:16 143:17
123:18 140:18,19 200:5,13 207:19 colleagues (2) 16:16 25:4,11 34:12 conclude (1) 230:14 91:25 92:2,5,7,21 149:22 154:3
153:25,25 154:25 cheque (1) 204:20 187:12 105:24 110:13 concrete (3) 47:8 93:7,21 95:25 174:17 195:20
163:23 174:1,2,15 chipboard (1) 167:18 collect (1) 93:25 142:21 146:8 149:1 48:18 161:6 113:5,17 114:2 227:4
184:11 187:11 chopped (1) 22:12 column (5) 25:22,25 149:17,18 151:6 concreting (4) 47:13 116:1 118:13,23 corrected (6) 12:14
206:11 221:17 chose (1) 106:15 106:12 227:6 154:12,13,15 155:5 47:17 48:10 49:2 122:14 127:17 46:9 76:23 83:13
227:18 228:6 chronicle (2) 46:14,15 228:22 156:14 164:19 condition (8) 44:4,5 container-dedicated… 125:9 185:7
centre (2) 51:23 187:5 circumstance (1) combined (6) 14:20 165:24 166:2,23 44:14 45:7,17 46:1 65:2 correctly (3) 50:17
CEO/Owner (1) 174:19 19:23 21:16 23:2,8 167:14 174:23 46:13 50:14 containers (26) 50:14 177:5 239:1
117:11 circumstances (4) 179:9 184:7,9,9,10,14 conditions (1) 100:8 50:15 51:5 61:20 corresponds (1) 76:8
certain (9) 91:7 93:2 166:20,20,22 240:5 come (42) 8:21 32:24 191:18 208:20 condone (1) 40:6 62:11 66:3 68:8 cost (50) 3:2 4:7,9
104:1 114:25 130:5 CIS (1) 187:24 35:23 36:22 37:3 214:2 216:7,21 conduct (1) 153:13 70:18 71:21 72:23 6:21 8:24 9:3,25
166:20 185:15 city (1) 89:16 38:14 40:22 69:5 218:25 221:20,25 conducted (1) 193:18 76:19 78:16 81:5 13:16 14:16 17:22
197:5 241:18 civil (3) 14:23 15:9 83:17 92:17 93:1 222:5 confidence (2) 166:6 83:23 89:20 90:19 18:1 19:4 26:20,24
certainly (19) 3:13 16:13 93:24 94:10 100:14 compare (1) 80:25 227:18 92:10 102:9 103:6 27:1,6,7,22 28:13
26:12,15 33:11 claim (3) 85:25 222:9 103:10,10 106:10 compared (4) 4:7 confident (4) 60:6 103:19,19 113:20 28:14,20 65:6
34:13 35:2,23 39:2 238:7 111:9 113:18 114:6 120:19 161:8,9 66:1 72:21 201:4 114:11,12 168:3 105:6 118:12
54:5 64:5 66:20 claims (7) 11:3 33:20 114:7 125:6 127:25 comparing (2) 80:9 confined (1) 90:6 197:16 127:16 134:5,13
129:7 151:18,18 33:23 34:2,9 222:8 137:17,19 142:6 114:19 confirm (13) 6:2 17:13 containers’ (1) 89:13 141:4 143:9,18
164:12 169:19 222:10 157:3 162:4 166:10 compelling (1) 180:16 52:17 77:7 116:3 contains (2) 73:17,18 145:9,20,21 146:3
170:7 228:24 clarification (1) 138:3 178:18,18 181:14 compete (1) 65:1 122:17 123:12 contaminate (1) 146:9,13 147:18,22
240:17 clarify (1) 58:18 186:14 212:4 competition (2) 216:9,12 218:4 164:11 148:1,12 149:11,21
cetera (5) 151:22 clause (2) 13:2 204:13 222:20 234:20 118:23 126:24 219:5 232:3 236:13 context (5) 28:22,23 150:14 151:8
181:14,15 190:22 clean (1) 114:12 236:13,20 237:25 competitive (1) confirmed (3) 116:11 199:10 216:16 156:12 161:6 208:2
190:22 clear (11) 67:8 100:14 240:15,21,24 115:21 129:3 234:10 226:2 208:3,11 209:12
challenge (1) 93:20 120:7 123:19 comes (5) 58:1,2,23 competitor (2) 117:24 confusing (2) 130:21 continually (1) 32:3 costing (1) 206:25
challenging (1) 69:17 145:12,14 153:21 96:3 110:9 122:23 153:14 continue (4) 38:23 costs (5) 41:9 99:24
chance (13) 31:23 153:22 232:11 comfort (3) 159:13 competitors (4) confusion (1) 184:12 68:11 152:4 172:17 100:3,5 175:23
112:18 132:22 239:4 241:7 161:22 191:1 121:17 122:14 congratulating (1) continued (2) 69:6 counsel (1) 124:14
148:6 166:12 169:6 clearance (2) 114:10 comfortable (1) 77:22 123:16 216:18 233:7 70:10 counted (1) 72:1
169:8 181:16,17 181:12 coming (14) 24:5 complete (2) 141:5 connect (1) 23:4 continuing (1) 34:22 counterclaims (1)
234:6,7,20 240:22 clearer (1) 54:13 51:22 73:25 101:5 181:9 connected (1) 51:10 contract (13) 12:9 11:4
change (13) 32:25 clearing (1) 113:19 109:5 113:11 completely (12) 80:14 connection (3) 64:3 13:11,15 14:5 21:3 country (1) 110:5
33:2,3 50:9 67:25 clearly (55) 4:3,11,12 172:13,18 181:12 91:8 107:5 109:14 117:14 231:21 21:9,10,14,25 22:4 couple (4) 28:18 41:3
82:18,24 106:14 23:12 24:2 34:16 191:24 192:2 113:22 139:18 conscious (1) 183:3 22:14,20 26:6 127:1 194:20
109:22 125:18 36:21 38:2,3,4 50:2 235:12,20 236:7 145:4 200:18 consider (7) 2:23 contractor (5) 190:19 course (13) 8:15 33:9
177:19 194:13 51:4 61:19 74:2 comment (3) 33:15 205:23 212:22 34:13 85:19 91:22 191:25 192:1 63:10 67:4 111:4
208:2 80:12,13,14 81:9 46:7 201:22 214:4 232:1 104:11 231:24 206:24 208:7 130:3 136:24 180:4
changeable (1) 70:3 81:24 83:1,5,14 commented (1) 64:1 completing (2) 206:22 236:2 contracts (1) 111:18 192:3 215:5 228:3
changed (10) 49:9 84:6 85:13 106:17 comments (5) 182:20 220:3 considerable (8) 27:9 contractually (1) 230:3,24
67:13 75:19 76:21 138:5 139:7 147:6 196:3 211:3 217:8 completion (3) 74:14 95:6 97:8 154:14 204:17 court (12) 5:15 31:13
77:9 82:24 84:7 150:3,21 160:20 217:15 76:5 85:8 156:20 181:19 contrast (1) 181:20 114:15 183:23
87:23 158:6 197:15 161:22 162:4,5 commercial (8) 11:17 complex (1) 222:10 203:3 214:23 contributed (3) 152:1 184:20,22 186:10
changes (2) 16:18 164:2 169:25 60:18 174:22 complexion (1) 236:9 considerably (2) 90:2 152:2 202:3 191:4 234:12 235:7
106:14 172:15 174:11 201:13,18 202:15 complexities (1) 16:14 196:20 control (3) 25:20 236:11 242:11
changing (2) 82:5 177:12 179:18,19 219:11,17 complied (3) 237:12 consideration (8) 3:23 187:10 221:16 court’s (1) 184:4
87:21 181:8 186:12 commercially (1) 74:2 237:18 238:13 13:2 35:4 39:25 controlling (2) 106:6,7 cover (2) 107:11
charge (27) 62:12 196:19 197:16 commercially-sensit… component (1) 112:1 60:18 111:13 convenience (1) 231:1 191:6
101:1 103:12 200:25 201:3 122:3 comprise (2) 74:10 212:16 240:14 convenient (2) 54:3 covered (1) 162:1
111:23 112:2 116:4 204:13 206:23 commitment (3) 76:1 considerations (1) 183:2 covering (1) 188:8
118:2,12 119:17 208:24,25 209:1 203:16 206:14,16 compromise (1) 3:22 conventional (1) crane (2) 50:18 110:1
120:6,10,10,17,19 214:3 220:2 223:13 committed (1) 203:25 171:10 considered (5) 11:16 88:12 craneage (1) 91:23
120:20,21 121:13 clerk (1) 233:17 committing (2) 209:2 computer (1) 5:6 34:22 35:2 159:23 conversation (4) 38:3 cranes (2) 100:1
121:18 122:20,24 clever (2) 156:3 209:3 concave (1) 56:10 191:15 38:17,19,21 108:17
123:4,13,16 124:1 157:21 common (6) 34:7 conceivably (2) 140:7 considering (4) 11:17 conversion (1) 12:5 creation (1) 60:22
125:21 134:4 click (3) 106:9,11 69:20 71:4 98:19 161:17 35:16 211:7 237:7 convert (3) 87:11 98:8 credibility (2) 160:5
188:25 183:17 111:20 117:19 concentrate (2) 202:2 consisted (1) 60:25 108:17 161:14
charged (1) 200:24 client (8) 14:12 32:20 communication (3) 212:12 constructing (1) 69:7 convince (1) 192:11 credit (3) 201:14,19
charges (13) 114:14 60:10 159:19 232:19,20,24 concept (1) 134:24 construction (3) 65:25 convinced (1) 70:18 202:16
114:17 117:20 160:14 177:14 companies (35) 20:19 concern (15) 137:13 134:25 208:3 convincing (2) 70:8,8 creditor (1) 152:21
118:11 121:10 223:13 240:10 20:20 21:22 25:13 138:5 150:21 consultancy (1) 41:8 cooled (1) 170:14 crisis (2) 169:20
134:12,22 135:7 clients (4) 9:5,16 25:16,19 61:19 164:21 165:15,18 consultant (4) 197:24 copied (7) 133:18 170:21
140:21 168:5 122:8 159:9 74:4 109:12 117:14 165:19 166:1 180:4 198:11 199:2 209:7 138:13 213:12 critical (3) 4:22 39:16
205:13 206:10 close (6) 57:12 58:23 117:17 123:9 190:24 215:12,13 consultants (1) 77:16 217:7 225:13 54:2
207:5 58:25 69:5 170:24 137:14 138:22 220:7 221:2 234:1 contact (1) 185:25 228:14 233:17 criticism (1) 240:12
charging (2) 122:7 239:16 139:17 144:21 concerned (19) 3:22 contacted (3) 181:23 copies (5) 62:19,20,22 cross (3) 57:16,18
140:17 closer (1) 55:18 145:18 150:25 4:19 9:2 20:9 40:20 182:8 232:22 183:11 184:20 217:15
chats (1) 207:22 closing (3) 171:25 164:7,18 165:7 64:25 145:11 contained (1) 168:17 copy (17) 5:13,18 28:2 cross-examination (8)
cheap (1) 44:11 172:9 206:25 167:7 173:12 156:18 157:9 164:8 container (59) 55:7 52:4 63:4 78:21,22 2:10 129:4,16,19
check (15) 10:19 16:8 cloth (1) 101:8 179:25 180:5 184:8 165:3 166:15 59:2 60:22 61:4,11 79:16 122:13 174:3 129:21 130:4 235:8
18:23 19:7,13 24:1 clue (1) 224:18 184:15 190:20,21 167:13 186:5 61:15,18,23 62:13 174:4,6,9,10 243:5
24:2 64:5,6 67:16 Clyde (5) 34:17 38:3,5 208:20 223:6 209:20 227:9,24 64:25 65:10,18 212:19 213:1 cross-examinations …
177:7 179:22 200:7 41:13 222:12 225:20 226:25 230:2 237:22 66:10 68:13,22 238:21 239:16
213:7 230:4 Clydes (3) 163:11,25 227:3,16 concerning (1) 2:13 69:8,11,21 70:9,14 corner (2) 57:2 185:6 cross-examine (4)
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March 2, 2016 Day 20
234:24 235:12 236:17 241:4 cross-examined (2)
28:7 236:5 cross-examines (1)
241:11 cross-reference (1)
21:2
crucial (3) 39:15 136:10 152:23
Crudely (1) 71:23 Crumbs (1) 171:3 cryptic (1) 224:12 culminate (1) 199:7 culpa (1) 156:23 currency (1) 34:7 current (2) 187:14
220:17
Currently (1) 184:7 curtilage (1) 52:22 curve (2) 70:2,2 Curves (2) 106:10,11 custodian (1) 239:4 custom (1) 222:6 customs (4) 100:4
113:19 114:10 181:12
customs-cleared (1)
118:17
cut (4) 101:7 105:24 130:13 210:25
CYA (1) 191:4
Cypriot (6) 12:17
214:2 216:21 218:25 221:20,25
Cyprus (1) 216:7
D
D (1) 24:12
D/43 (1) 78:20 D15/363/1 (3) 15:6,24
19:20
D15/363/10 (1) 24:12 D15/363/5 (1) 178:23 D15/363/52 (2) 20:3
24:22
D15/363/9 (2) 21:16 23:16
D196/2931/1 (1)
51:15
D196/2931/2 (1)
54:15
D197/2944/1 (1)
117:10
D197/2945/1 (1)
116:24
D197/2945/4 (1)
117:1
D197/2945/5 (1)
117:2
D20/407/1 (3) 12:8 22:5 23:6
D20/407/2 (1) 13:1 D20/407/28 (1) 22:11 D20/407/29 (1) 22:9 D43 (1) 175:7 D43/750/1 (1) 80:3 D43/750/13 (1) 88:3 D43/750/4 (2) 73:9
74:7
D43/751/1 (2) 78:21 81:3
D43/751/20 (1) 85:1 D43/751/6 (3) 78:12
81:4 84:17
D44/753/1 (1) 81:14 D44/753/22 (2) 87:5
87:10
D44/753/6 (3) 81:14 date (8) 9:10 25:19 110:2,8 detailed (5) 159:5 228:13 130:14,15 131:3
86:15,17 47:16 121:21 dedicate (1) 71:1 171:14,20 199:8 dirty (2) 52:9 71:3 143:7 149:5 150:1
D48 (1) 175:16 185:16 217:25 dedicated (3) 65:1 208:11 disagree (8) 50:2 156:4 176:18 182:3
D48/829/1 (4) 175:2,8 229:12,18 70:9 92:10 detailing (1) 222:7 107:7 126:15 182:13,21 184:13
175:12,17 dated (3) 5:19 12:10 deduce (2) 33:25 details (1) 24:14 129:25 158:16 185:2,8,11,12,22
D48/829/2 (2) 9:6,22 185:5 73:19 detain (1) 182:16 168:4,6 169:8 187:7,10 212:17
D50 (1) 101:16 dates (1) 226:6 deed (3) 222:15,18,25 detriment (2) 171:13 disappointed (1) 222:10,13,16 226:3
D51 (1) 176:15 day (20) 28:1,5 30:4 Deed’ (1) 222:7 214:12 66:19 229:7,10
D51/887/1 (1) 17:5 30:22 39:9 62:7 deemed (1) 199:9 develop (10) 3:13 4:2 disclaimer (1) 177:12 documentation (2)
D51/887/15 (1) 18:5 82:16 84:10 125:9 defendants’ (1) 11:3 4:6 39:19,24 40:3 disclose (2) 45:13 32:10 214:18
D51/887/38 (3) 18:12 127:5,9 140:20 defensive (1) 78:2 97:12 98:5 144:10 234:11 documents (30) 5:15
49:8,14 152:15 181:9 191:9 defer (2) 98:11 116:19 169:7 disclosed (7) 44:23 5:16 28:20 82:13
D51/887/9 (1) 17:20 205:13,24 206:25 deference (1) 63:6 developable (1) 42:14 129:2 235:4,5,5 111:9 163:12,24
D51/888/1 (1) 176:11 231:21 242:5 deferred (2) 98:23 developed (15) 60:17 237:20 238:23 164:1,3 198:23
D51/888/5 (1) 176:16 Day11/52:17 (1) 28:2 101:7 69:11 75:25 76:15 disclosure (14) 233:17 212:14 234:11,12
D52/889/1 (3) 5:18,25 Day11/57:3 (1) 29:2 deferring (1) 91:4 89:9 91:24 94:15 234:3,4,6,13,22 234:14,19 236:1,7
6:16 Day11/57:6 (1) 29:18 deficit (1) 29:13 97:19,25 99:12 235:13,20 237:11 236:14 237:21
D52/889/11 (2) 142:7 Day11/58:3 (1) 29:19 define (1) 208:8 100:11 104:7,17 237:22 238:4 239:2 238:3,15,16,18,20
148:9 Day11/60:2 (1) 30:4 defined (1) 208:10 193:16 209:24 239:4,8 239:7,8,24 240:23
D52/889/15 (1) 7:7 Day11/65:1 (1) 30:9 defining (1) 208:8 developing (3) 43:2 discomfort (1) 5:4 240:25 241:20
D52/889/29 (2) Day11/66:1 (1) 30:10 definitely (8) 3:23 107:1 145:21 discover (4) 36:5 37:4 doing (21) 23:3 40:10
117:22 122:14 Day13/194:1 (1) 40:22 46:19 56:13 development (44) 7:8 214:10 230:18 41:10 46:21 67:15
D52/889/35 (1) 45:23 30:16 57:17 185:16,20 37:10 39:20 41:20 discovered (6) 38:1 84:5 86:12 91:2
D52/889/37 (4) 7:16 Day13/194:9 (1) 31:4 192:1 42:1,4,16,17 43:10 40:19 43:19 122:5 96:21 103:20
48:1,5,10 Day13/195:1 (1) 31:4 definition (1) 90:9 47:3 49:4,22 56:19 151:7,25 107:21 114:5
D52/889/6 (3) 75:12 Day13/196:1 (1) 31:5 definitive (1) 14:11 59:14,22,24 60:13 discrepancies (2) 159:21 177:6 180:1
75:21 177:18 Day13/197:1 (1) 31:6 degree (2) 187:8 66:1 72:22 73:19 32:24 37:3 189:4 210:17
D52/889/7 (1) 76:3 days (1) 114:8 213:23 74:9,14 75:1 76:5 discrepancy (12) 27:6 214:12 216:16
D52/889/9 (3) 6:22 days’ (1) 66:4 delay (3) 206:24,24 85:9 91:13,19 92:6 27:24 28:19 29:8 218:16 233:6
178:9,21 DD (2) 36:23 67:15 237:2 96:23 97:18 98:2 35:18 36:2,14 38:1 dollar (2) 11:23
D53/889/37 (1) 47:6 de-stuff (1) 114:13 delayed (2) 169:19 98:14 117:3,8 39:6 41:4,7 125:6 115:22
D55/944 (1) 119:9 de-stuffed (1) 118:16 170:20 132:25 141:5,12 discuss (5) 128:8 dollars (4) 11:21
D55/944.1/1 (4) de-stuffing (1) 113:20 deleted (1) 83:2 143:10 145:5 177:5 196:7 201:12 167:4 178:15 209:9
101:10,15 118:25 dead (2) 63:20 76:9 deleterious (1) 171:23 180:24 181:4 232:12,17 domain (2) 73:23 74:6
133:19 deal (7) 97:20 132:1 delivered (3) 45:14 210:19 228:11 discussed (8) 102:3 doodling (1) 125:9
D66/1035.1/1 (2) 136:9 156:22 172:1 48:17 50:4 difference (8) 4:4 27:9 138:17 151:12 double-counting (1)
212:13,20 202:2 220:13 Deloittes (1) 92:19 35:19 38:15 112:14 168:21 183:25 61:13
D67/1042.1/1 (1) dealing (2) 97:18 demand (2) 103:24 112:17 114:4 217:14 228:3 230:1 double-up (1) 219:23
217:5 180:5 120:23 155:10 discussing (4) 41:23 doubling-up (1)
D67/1042/1 (2) 217:4 dear (1) 223:25 demonstrate (1) different (38) 6:11 9:1 123:20 210:14 219:24
217:22 debate (3) 53:23 127:10 26:24 43:24 56:6 215:1 doubt (6) 24:17 93:20
D67/1042/2 (1) 104:8 213:24 demurrage (1) 114:8 67:22 79:25 85:22 discussion (9) 61:21 169:14 203:12
217:24 debated (1) 210:5 department (2) 91:22 94:2 104:7 64:20 80:15 84:6 228:1 241:13
D67/1053.2/2 (1) debt (63) 95:3,6,9,12 153:16,16 104:12 112:12 84:14 86:11 182:13 downside (4) 189:14
138:7 96:13,17 97:8,14 departments (1) 114:3,17 117:17 202:14 207:17 189:14 207:2
D74 (1) 223:17 98:12 101:6 105:19 202:1 120:22 128:25 discussions (8) 16:7 208:13
D74/1070.1/1 (2) 107:9,11 132:21 depending (2) 72:2 139:18 140:6,8 133:2 162:25 182:8 Dr (59) 4:24 8:21
119:6 135:5 134:5 136:14 137:2 98:7 145:4 156:24 187:11 210:8 214:4 10:18,19 11:2 12:1
D74/1074/5 (1) 137:3,16,23 140:14 depends (2) 161:3 163:20 164:13,13 215:6 13:13 27:24 28:6
192:15 140:21 141:13,20 166:21 175:14 183:13 Discussions’ (1) 28:17,25 29:3,6,12
D74/1074/6 (1) 193:5 141:23 142:5,15,16 deployed (1) 131:7 194:15 197:14 182:21 30:13,16,23 31:13
D74/1096.1/1 (3) 143:2,16 144:15 depots (1) 89:18 206:21 210:25 dismal (2) 240:7,11 33:20 34:9,21 36:9
223:16,18 226:4 145:9,17 148:19,22 depreciating (2) 107:2 212:21 220:1 disproved (1) 88:15 39:1 60:3 64:11
D74/1101/1 (3) 150:4 151:13 108:8 222:17,17 230:20 dispute (1) 174:20 66:13 70:8,10,24
226:13,15 229:7 153:17 155:1,1 depreciation (14) 236:9 disrespect (1) 150:25 82:13 88:17 112:5
D74/1102/1 (2) 156:5,9 161:7 100:23,25 105:6,8 differently (1) 210:22 distinguish (1) 153:18 139:24 141:22
194:19 201:8 164:25 167:4,9 107:14,16,23 108:4 difficult (9) 14:9 39:2 distressed (1) 209:21 144:14 146:13
D74/1102/2 (1) 201:9 168:23 189:15 108:6,14 109:9,25 39:3 65:1 122:2 diversified (1) 166:24 150:11 163:18
D74/1104.1/1 (3) 197:13 221:18 110:7 134:19 127:11 130:21 diversion (1) 132:7 172:20 173:8,12
223:19,23 224:2 222:5 223:2 224:24 depressing (1) 97:16 152:9 170:23 divider (29) 5:18 17:2 177:1 180:5 181:2
D75/1116/2 (1) 203:7 225:7,14,15,18,24 describe (5) 75:17 difficulties (1) 127:18 51:14 54:13 73:13 191:22 192:16
D75/116/1 (1) 202:22 226:11,12,18 229:4 122:19 140:25 difficulty (1) 239:15 75:14 78:22,23 205:3,6 206:8
D84/1153/1 (1) 185:1 229:11 172:20 182:12 digit (1) 82:8 79:9,9,11,14 80:3 207:7 213:13 217:7
D84/1153/2 (1) debtor (1) 227:23 described (7) 31:14 diligence (23) 32:5 80:20 81:3,13 222:24 225:14
187:13 debts (13) 144:21 33:9 47:2 55:10 35:16,22 37:4,23 84:18 86:14,16,17 227:16 228:15
D84/1153/3 (1) 145:18 223:5 168:22 185:3 38:23 42:24 43:19 87:7 88:3 117:23 229:1 231:23 240:9
187:17 226:24 227:3,13,15 211:20 66:15 150:18 151:2 175:3,18,19 176:15 draft (28) 73:15,19
D84/1153/4 (1) 227:21,22 228:1,10 describes (1) 184:5 151:17 162:5 169:1 177:18 178:2 76:8 77:4 78:13
187:21 229:11,12 design (4) 171:14 169:4 177:9 193:21 doable (1) 232:4 79:1,12 80:4,9,9,18
D98/1259/1 (1) 205:2 December (4) 15:4 190:19 208:1 209:6 197:21 198:8,15 document (55) 5:24 81:7,12 82:24 85:5
D98/1259/2 (1) 19:24 179:10 215:8 designed (3) 20:7 207:15 209:2,4 6:16 9:14,20 13:19 87:23 88:2,21
206:19 decide (1) 33:17 66:9 90:15 Diligence’ (1) 159:5 14:14 17:11,13 91:21 176:12,13,14
danger (1) 162:24 decided (1) 4:2 desire (1) 170:10 dimension (1) 120:22 18:12 23:6 35:20 176:14 177:10
Daniil (3) 177:3 decides (2) 94:13 despairing (1) 235:16 dimensions (3) 76:14 49:2,19 73:15 179:17 201:6
225:12 228:11 95:18 destined (1) 137:16 76:22 96:21 78:17 80:21 81:3 202:22,23
dark (1) 56:7 decision (4) 97:2 98:7 destroy (2) 43:6 107:5 direct (2) 57:21 100:5 82:15 84:9,25 drafted (2) 86:1 218:5
data (7) 15:17 16:10 208:1,2 destruction (1) 163:2 directly (2) 180:2 85:18 87:24 124:7 drafts (8) 78:9,18
73:23,24 91:11 declined (1) 188:13 detail (2) 161:18 211:2 124:9 128:17 79:25 83:25 87:22
93:23 122:3 decrease (3) 62:1 196:20 director (2) 192:9 129:23 130:1,5,12 88:6 176:11,14
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March 2, 2016 Day 20
draught (1) 113:9 draw (2) 97:5 104:1 drawdowns (1) 98:11 drawing (1) 24:8 drawn (5) 16:2 53:16
105:22 110:23 222:25
Drewry (2) 77:15 90:2 drilled (1) 229:21 drilling (1) 239:24 driver (2) 114:7
151:13 drivers (1) 100:2 driving (2) 76:24
105:18 drop (1) 113:12
Dubitskiy (2) 225:12
225:17
due (24) 32:5 35:16 35:22 37:4,23 38:22 42:24 43:19 66:15 150:18 151:2 151:17 159:5 162:5 169:1,4 177:9 193:21 197:21 198:8,15 207:15 209:2,4
Dutch (1) 114:25 dynamics (1) 61:17
E
e-mail (20) 138:8,13 139:5 212:18 213:4 213:12,15,20 214:19 216:1 217:6 217:7 224:6 225:3 225:11 228:14 233:19 234:5,9 238:23
e-mail/phone (1)
186:1
e-mailed (2) 232:21 237:21
e-mails (3) 16:5 150:23 171:22
E&Y (2) 151:20 194:7
E5/17/22 (2) 92:15 112:15
E5/17/23 (2) 92:24 112:16
eagerly (1) 160:23 earlier (20) 3:25 4:7,9
8:9 20:25 73:11 102:3 104:14 128:18 163:3 175:9 175:22 178:24 184:17 189:8 207:16 226:3,7 228:14 236:12
earliest (1) 206:23 early (2) 116:14 215:8 earn (1) 118:17 earnest (1) 150:8 earnings (1) 110:14
Earth (2) 51:16 54:25 earthquake (1) 158:14 ease (1) 5:16
easier (3) 4:14 78:22 133:19
easily (8) 70:2 84:4 97:9 156:21 199:25 200:2,11 208:9
East (1) 113:10
Easter (2) 239:19 240:21
easy (8) 53:3,20 55:7 59:1 62:16 67:14 125:16,18
EBIT (1) 178:15 ensure (1) 196:4 131:25 132:3,13 139:11 140:14
EBITDA (7) 108:3,12 entered (6) 170:1 199:14,16 203:1 141:13,20 165:5
108:21 109:20 173:11,15,16 223:6 222:9,23 240:3 167:9
110:13,21 111:1 227:7 events (2) 121:24 expanding (1) 218:17
EBRD (20) 138:10,19 enterprise (4) 108:11 131:6 expect (12) 35:15
138:23 139:13,15 109:19,19 153:8 eventuality (1) 221:8 78:25 81:11,20
139:21 140:1,2 entire (1) 241:11 eventually (2) 15:22 94:8 95:22 103:2
155:24,24,25 entirely (3) 6:9 64:4 70:9 152:4 193:4 204:3
198:24 210:10,24 77:22 everyone’s (1) 231:1 230:8 231:25
211:17,24 213:6 entities (2) 142:4 evidence (62) 2:3,11 expectation (1)
217:17 218:23 164:14 3:18,19 4:24 6:4,13 174:18
219:9 entitled (2) 73:5 12:1 15:25 16:3 expectations (1)
EBRD/Vyborg (1) 182:21 23:21,25 26:5,22 110:25
217:16 entity (2) 144:25 27:4 28:6,18,25 expected (2) 98:10
EC (2) 197:25 198:24 153:13 29:3,6 30:17,21 103:17
ECAs (1) 193:17 entrepreneur (2) 31:15,19,20,24 expenditure (6) 48:22
economic (2) 43:6 154:22 172:25 33:16 34:20 35:8 49:1 97:14,23,24
70:25 entrepreneurs (1) 35:11 38:8 54:11 98:15
Educating (1) 127:2 180:12 61:9 63:3 66:7 expense (2) 61:3
effect (20) 31:15 entries (2) 23:2 67:17 72:19 73:8 68:22
35:10 42:10 62:10 185:22 85:23 95:1,2,8,13 expenses (3) 25:23
68:3 94:18 95:16 entry (6) 21:7 23:22 100:9 109:16 99:23 209:1
96:1,2 97:16 99:11 25:23 26:13 175:17 124:19 126:23 experience (14) 4:15
99:16 102:12 175:20 128:8,21 129:17,23 64:24 88:24 90:14
104:11,19 109:23 envisaged (3) 60:21 130:16,24 141:25 90:18 91:10,19
126:16,18 140:23 230:23,24 146:24 148:13 92:5,7,11 116:6,9
171:23 equal (1) 96:7 160:1 177:6 197:9 116:12 127:3
effectively (12) 35:23 equals (1) 88:9 210:3 241:8,19 expert (7) 83:20,22
41:20 108:13 equation (3) 4:20 Evo (2) 117:12,18 91:5 92:18 99:10
113:24 145:20 39:14 221:15 Evolution (4) 117:3,8 116:19 129:14
155:7 187:14 195:8 equations (1) 135:1 117:13,16 expertise (1) 83:18
216:11,18 219:21 Equatorial (1) 158:19 ex (1) 128:23 experts (1) 77:15
232:21 equipment (3) 100:5 exact (1) 39:22 explain (17) 29:12
efficient (3) 78:24 107:2 110:3 exacting (1) 183:5 62:24 65:20 66:24
110:2 196:7 equity (18) 133:5 exactly (37) 6:19 9:19 102:8 112:13
effort (3) 62:1 159:17 142:22 149:2 13:10 17:9 34:14 125:15 127:20
220:22 150:19 151:5,9 35:14 36:18 53:14 130:12,18 179:15
efforts (2) 215:9 152:1,22 153:16 58:10 59:20 71:3 181:22 182:19
220:5 154:25 155:6 156:1 71:16 72:24 73:2 209:14 210:22
eight (4) 84:5 148:3 161:9 186:11 84:24 96:1 109:2 224:9,16
171:3 218:11 187:20 221:7,14,18 127:23 141:24 explained (13) 25:10
either (13) 36:4,8 equivalent (12) 13:15 144:12 152:13 34:10 41:7 72:8
89:19 114:1 129:1 15:20 66:2,4 71:14 153:9 158:24 181:6 107:15 118:10
129:6 160:6 167:22 72:11 75:11 80:21 182:4 186:6 193:4 122:1 130:3 153:6
169:10 185:11 82:1 87:7,10 193:24 197:3 199:4 162:12 166:21
206:21 208:14 100:22 205:8 213:22 168:24 204:24
232:20 error (10) 81:10 83:9 217:13 220:25 explaining (5) 21:19
elaborate (1) 195:14 83:12 84:22 85:12 221:9 223:12 63:5 82:5 124:15
element (2) 159:2,3 85:20,24 86:8,10 239:10 127:23
elicit (1) 9:16 86:20 exaggeration (1) explanation (22)
embarrassment (2) especially (3) 152:11 180:13 27:16,23 28:19
156:20 214:24 231:22 240:8 Examination-in-chie… 29:3 36:1,9,10,15
embryonic (2) 68:13 essence (1) 217:15 1:13 243:4 38:24,25 80:12
77:12 essential (3) 159:2,7 example (4) 3:24 81:6 82:12 83:11
emerged (1) 41:5 192:9 110:6 113:3 180:6 84:4 85:12 86:9,21
emerges (1) 237:5 establish (2) 92:5 examples (1) 114:15 87:21 90:6 125:5
emerging (4) 32:8 150:18 exasperating (1) 236:10
40:8,11 158:17 established (1) 142:2 127:3 explicitly (1) 203:15
emphasised (1) 31:17 estate (4) 39:11 exceptional (1) 240:3 export (7) 61:25 70:15
enabled (2) 32:25 159:13 189:24 excessive (1) 220:11 70:20,21 201:14,19
180:17 190:2 exchange (2) 11:21 202:16
encourage (2) 2:23 estimate (2) 89:7 38:21 exporting (1) 69:6
233:6 208:11 exclude (2) 61:10 exports (1) 62:1
encumbered (1) et (5) 151:22 181:14 204:14 express (1) 138:5
227:10 181:15 190:22,22 excluded (1) 60:9 expressed (3) 140:2
ended (3) 15:4 19:24 etiquette (2) 183:23 excluding (1) 130:20 188:21 203:24
179:10 184:22 exclusive (2) 212:3 expression (5) 114:20
energetic (1) 172:24 EU (6) 115:24 118:19 215:21 170:5 186:10 191:3
engage (1) 191:17 121:5,20 122:8 exclusivity (1) 37:21 220:4
engineer (3) 14:23 126:24 excuse (2) 52:9 extending (1) 115:11
16:13 190:20 Europe (2) 77:12 233:25 extension (1) 55:2
engineering (4) 15:9 118:23 executing (1) 159:2 extent (13) 16:13
171:20 190:19 European (4) 113:4 exercise (2) 124:12 20:11 23:14 91:7
209:6 118:22 191:17 151:2 97:12 114:25
English (5) 22:6,13 210:18 exhibit (2) 5:25 15:6 153:10 181:18
190:6 225:1 240:6 evaluation (1) 159:6 exhibited (1) 178:25 196:19 218:24
Enjoy (1) 232:17 evaporated (1) 170:12 existed (1) 122:6 220:7 221:14
enjoyment (1) 233:1 evening (1) 234:3 existence (1) 174:22 229:20
enquiry (1) 41:7 event (11) 129:11,15 existing (7) 138:22 extra (8) 50:3 56:24
58:24 73:8 89:16 114:7 122:7 235:13
extract (1) 11:2 extracts (1) 92:18 extremely (5) 4:17
53:3 59:1 122:2 222:2
eyes (4) 41:21 160:5 161:2 181:18
F
face (2) 35:19 87:15 facilities (6) 42:11 94:4,12 112:21 113:2 181:10 facility (15) 75:2,25
85:9 94:3 112:12 112:13 113:9 114:14 115:13 120:3,3 142:22 149:2,11 156:15
facing (1) 157:25
fact (37) 6:2 8:7 22:23 40:10,17 41:15,19 43:1,3 44:9 55:7,25 84:13,15 87:23 104:20 105:8 110:8 122:9 124:17 127:17 136:23 151:8,9 164:7 165:2 189:16 200:20 205:11 214:19 215:10 221:10 226:7 235:2 239:24 240:7,8
facto (1) 128:23 factor (12) 4:20 42:17
43:9 111:12,12 134:4 136:10 154:7 206:2 207:12,20 224:22
factored (1) 43:11 factors (1) 207:8 facts (4) 33:14 40:22
70:25 229:22 fail (1) 217:18 failed (1) 240:25 faintest (1) 200:20 fair (22) 9:18 14:7
25:19 32:21 49:22 50:19,20 66:15 67:20 73:21 95:12 132:20 143:10 163:17 173:7 186:8 190:15 193:2 200:1 212:8 215:20 222:20
fairly (4) 50:19 69:20 129:5 183:4
fairness (1) 31:25 faith (1) 150:7 fall (1) 234:13 falling (2) 157:16
233:5 false (1) 84:2
familiar (1) 226:21 familiarising (1) 10:7 familiarity (1) 79:6 far (16) 3:21 9:2 29:8 40:7 70:13 90:10 90:10 113:10
140:15 161:19 162:12 198:20 237:11,17,22 238:2
fast (1) 14:8
fatal (3) 160:5 199:7 214:16
fate (1) 231:3
fault (10) 46:18 48:5 52:6 92:18 213:11 223:18 237:23,25 239:1 242:3
favour (2) 104:9 241:4 feature (2) 69:21 88:6 February (3) 128:3
173:23 226:9
February/March (1)
173:17 fed (1) 10:13
fee (5) 173:10,14,25 174:12 189:6
feed (1) 64:8 feedback (1) 185:19 feeder (1) 113:13 feel (6) 77:22 121:4
127:5 154:16 231:4 231:7
feeling (4) 32:17 170:6,9,11 feelings (1) 160:9
feet (1) 51:2 Felixstowe (1) 93:5 felt (2) 35:12 173:4 fence (2) 55:19 56:9 fewer (1) 188:10 fide (1) 174:1
field (2) 171:18,20 fifth (1) 135:25 figure (42) 26:1,4
28:21 78:15 81:5,6 81:17 82:5 83:24 84:18 85:13,21,22 86:3,21 87:21 88:12 89:5 93:9,10 93:21 94:14,16,17 95:18 99:18 102:16 102:23 104:12 109:22 110:21 116:8 119:24 120:5 120:9 123:3,20 124:16 127:12,14 147:1,3
figures (31) 15:21 33:14 70:23 77:10 90:2,14 92:21,25 93:13 101:22 102:13 106:3 112:22 118:1,5 123:7 125:5 128:1 135:6 175:1 176:16 176:20 177:8,9,19 178:8,10,16 179:12 179:16 180:9
file (2) 5:15 238:22 files (3) 1:11 234:3,17 filled (1) 228:21
final (13) 6:6 65:12 67:1 75:11,18 77:3 77:5 148:9 176:13 176:14 177:17 178:4 179:17
finalise (1) 144:25 finalised (1) 16:1 finalising (1) 181:22 finally (1) 115:20 finance (45) 3:4 4:8
4:16 20:8 23:10,25 30:19 31:21 34:23 35:17 37:1 39:16 43:21 49:4 92:6,13 99:10 134:6 141:11 142:1 145:20 155:16 169:6 205:7 205:12 206:9 210:1 210:4,6,17,17 211:15,19,21,25 213:6,10,11,20,24
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
249
March 2, 2016 Day 20
214:14,17 215:3 164:23 frontispiece (1) 80:21 164:8 165:25 117:10,20,22 241:16,25 half-witted (1) 47:22
217:8 228:13 flash-on (1) 127:16 full (6) 69:2,11 97:5 166:15 185:19 118:25 126:4,19 goodwill (1) 34:3 halfway (7) 6:25
financed (2) 10:7 flaw (1) 199:8 104:1 105:22 generate (5) 105:1 132:3 133:15 135:4 Google (3) 51:16 17:24 88:7 187:14
169:15 flex (1) 189:11 159:18 109:15 134:22 136:8 140:22 145:8 54:25 58:19 197:20 210:7 219:8
financer (1) 24:16 flight-wise (1) 232:6 fuller (1) 217:3 167:17,18 147:14 153:15 gosh (1) 180:9 halt (4) 57:24 66:21
financial (23) 14:20 floating (1) 50:18 fullness (2) 66:18 generated (1) 60:17 158:21 160:25 Government (2) 61:24 181:17 199:17
15:10,17 16:10 flow (8) 41:24 42:11 112:7 generating (10) 44:8 168:11,12 169:12 70:20 halve (2) 96:6 104:24
18:23 19:8,23 100:20 107:8 135:2 fully (4) 134:25 50:3,6,12 65:7 171:1,11 172:19 grab (2) 241:7,9 halved (3) 95:25
21:17 23:9,17 151:14 155:2 228:4 151:23 202:12 108:12 111:11 175:2,12 176:1,11 grateful (5) 79:22 107:3 108:19
99:16 101:22 fluent (1) 90:24 215:17 147:23 172:4,5 177:18 178:9 179:8 231:13 233:19 halves (1) 105:3
161:20 169:19 fly (1) 223:25 fun (1) 173:2 generation (1) 95:4 180:19,20 181:21 241:10,24 halving (3) 96:7 103:7
170:20,23 190:22 focus (6) 22:12 29:23 fund (6) 142:15 generic (1) 152:20 187:13,17 188:19 grave (1) 162:24 109:16
193:15,25 196:3 61:11 78:15 104:16 159:20,23 170:10 gentleman (2) 88:25 189:18 193:5 194:8 great (1) 166:24 Hamburg (1) 93:4
203:18 209:25 192:12 208:9 219:13 177:2 194:19 196:20 greater (3) 4:12 hand (5) 62:16 80:19
228:4 focused (1) 47:1 fundability (2) 194:17 gentlemen (1) 89:4 198:5 199:6 201:17 161:22 196:19 209:10 228:25
financially (1) 16:16 focusing (1) 121:12 200:7 getting (13) 27:12 202:3,22 203:7 greatest (3) 19:1 231:6
Financials (1) 178:11 follow (8) 29:7,9 fundable (4) 185:20 62:22 89:3 118:13 206:19 207:7 209:9 80:15 109:24 handed (4) 63:4 79:20
financier (1) 4:17 63:11 79:18 80:17 199:25 200:2,11 162:9 170:7 172:8 209:22 214:5 217:4 greatly (1) 89:15 184:17 233:18
financing (22) 38:9 129:13 131:23 fundamental (1) 172:10 191:10 217:23 222:24 greenfield (1) 44:16 handle (1) 97:9
44:3 137:9 140:23 152:5 87:24 201:20 209:8 214:8 223:16,16,18 grey (3) 4:12 39:14 handled (1) 118:21
169:18,22 170:20 followed (1) 210:8 funded (1) 132:17 235:13 226:12 230:12,23 55:6 handling (33) 62:12
171:17 172:1 193:9 following (9) 9:23 funder (2) 23:12 gilding (1) 209:10 goes (10) 57:12,25 greyhounds (1) 144:1 74:21 87:25 96:4
195:14 199:11 20:19 25:12 83:8 188:5 give (25) 3:24 14:25 100:6 104:10 grinding (3) 66:21 111:23 112:2 116:4
206:15,22 207:13 99:2 128:22 191:14 funders (1) 65:20 18:3 29:2 31:23 120:21 131:11,20 181:17 199:17 117:20,24 118:1,3
210:9,10,15,19 193:7 196:11 funding (12) 135:3 37:22 45:1 47:15 159:3 204:7 206:8 gross (2) 108:16 118:12 119:17
212:16 218:18 follows (2) 8:2 95:1 142:7,11 154:25 63:2 78:25 79:4 going (153) 4:14 178:14 120:6,10,10,17,21
221:13 foot (7) 11:5 13:3 156:6 160:21 80:6 82:12 90:8 12:22 14:9 27:23 ground (1) 68:9 121:9,13,18 122:15
find (18) 5:18 9:7 17:3 70:12 74:12 138:16 194:15 197:18 129:18 161:22 30:25 31:16,22 group (54) 11:9 14:21 122:18,20,23,24,24
23:1 38:24 45:11 195:10 224:25 210:23 218:23 166:12 172:25 36:1,4,14,15,16 19:24 60:4 132:17 123:13,16 124:1
47:2,4 65:1 73:10 footing (2) 131:17 220:1,20 197:9 198:3 200:3 39:17,21 42:16 132:21 137:1,5,13 125:20 168:5
81:25 114:14 153:23 fundings’ (1) 219:13 210:3 227:21 43:5,22,24 44:1 138:2,22 139:4,16 188:25
143:24 162:19 footprint (1) 51:1 fundraising (10) 23:15 233:24 242:7 47:9 49:3 57:4,5 140:10 141:10,13 hands (3) 111:7
175:13 176:9 Forget (1) 229:1 159:2 193:1 195:23 given (47) 4:25 10:20 58:5,21 62:2,5 141:23 143:15 204:19 234:23
182:17 225:18 forgive (6) 99:25 206:23 211:4,8 11:3 12:1 20:7 23:9 63:11 64:6,9 65:9 144:15 145:9,25 handy (1) 11:1
finding (1) 88:19 118:8 155:23 214:12 216:10,15 27:4,19,24 29:3,6 67:4,25 68:21 146:6 149:6,7,13 Hang (1) 213:6
finds (3) 34:20 150:13 183:24 184:22 fundraisings (2) 30:21 31:20 34:13 69:14 70:20 80:10 149:18 164:14,17 hangs (1) 231:3
156:17 209:23 207:16 210:20 36:9,10 38:8 39:1 81:5 83:10,17,19 164:19 167:7,7,14 happen (9) 40:11 51:4
fine (1) 232:10 forgotten (2) 125:7 funds (3) 2:22 151:10 40:15 65:24 78:19 84:7 85:5 89:5 167:14 169:16 69:25 104:20 105:9
fingers (1) 52:9 140:4 174:2 79:16 87:16 90:6 92:17 95:9,10,11 175:2 176:22 144:13 204:22,23
finish (7) 33:6 34:16 form (7) 4:13 51:25 further (23) 6:9 27:5 123:7 129:7,8 96:2,7,16,23 97:15 177:22 179:20 204:24
98:20 125:25 126:2 62:24 77:4 128:24 29:2,4 32:23 56:11 131:16 134:21 98:5 99:16,21 180:23 184:2 186:7 happened (4) 78:6
165:10 198:5 186:11 194:16 57:14,20 58:2 146:12 147:11 100:1,2,10,14 189:25 191:17 98:1 207:16 235:22
finished (3) 128:3 formal (2) 130:16 98:11 121:10 155:21 156:24 101:1 103:10,11 208:20 211:6 214:3 happening (4) 38:19
208:17 234:22 195:1 142:18 148:24 177:6,14 180:6 105:5,6,15 106:8,9 220:22 221:11 63:21 144:18
finite (2) 60:25 62:6 forms (2) 50:5 156:5 151:11 190:8 205:10 213:1 227:7 107:4,8 108:7 223:10 224:24 236:15
fire (1) 45:2 forth (2) 41:10 103:25 192:24 221:12 229:10,15 231:20 110:23,24 111:13 225:15 226:24 happens (1) 165:18
fire-fighting (1) 109:7 forthcoming (1) 14:6 222:3 232:8 235:3 232:15 237:9,10 115:2 116:1,2 228:10 229:4 happy (3) 33:8 132:4
firm (1) 191:22 Fortis (3) 124:23 236:20,24 242:1 239:2 241:19 121:13 126:2,12 group’s (3) 164:9 195:8
firmly (1) 191:16 125:7 126:9 furthered (1) 215:6 gives (3) 8:15 24:13 127:8 128:5 129:15 169:14 173:1 hard (27) 28:2 44:6
first (51) 1:20 7:25 forward (2) 225:14 Furthermore (1) 201:15 134:1,5,8 135:9,15 group-wide (1) 167:5 45:17,20,22 47:8
13:18 25:17 26:25 242:8 201:12 giving (4) 28:6 35:9,11 140:3,5 141:19 growing (1) 14:8 47:13 48:10 49:3
27:2 28:2 44:3 61:6 forwarded (1) 225:5 future (4) 7:8 39:10 106:21 142:4,6 143:1,7,8 growth (1) 70:16 50:8 52:4 56:6 63:4
63:8 73:15,19 forwards (3) 84:7 47:11,12 glad (1) 233:6 143:14,21,25,25 guarantee (1) 228:22 76:12 78:21,22
74:25 79:12 80:4 86:24 225:3 fuzziness (1) 170:14 glancing (1) 114:23 144:2,7,7,8,9,13,14 guarantees (13) 79:16 102:4 122:13
80:18 81:15 88:21 found (7) 88:14 123:8 fuzzy (3) 170:6,9,11 glove (1) 209:10 144:20 145:8,13 220:12 223:5 227:5 131:21,23 160:9
98:6 111:5 118:2,6 159:8 190:5,6 go (140) 5:17 6:21 7:7 148:9,18,22 150:18 227:7,14,16,21,22 183:16 212:19
121:12,22 122:18 215:5 221:11 G 7:16 9:22 12:25 151:16 155:12 228:1,18,20 229:16 213:1 226:6 238:21
122:23 123:16 four (11) 45:13 62:20 game (7) 152:12 15:18 16:4 17:20 156:9,18 157:10 229:17 hardware (2) 100:6
133:25 134:17 69:4 89:14 118:6 18:12 19:20 20:2 158:16 164:6 guarantor (1) 227:23 188:5
154:5,15,16,19
136:9 142:24 121:16 136:7 21:1,16,24 22:5,11 166:11,25 171:19 guarantors (3) 227:8 Harris (2) 198:1,24
170:3 186:11
155:18 156:12 167:23 168:14 23:8 24:12,22 180:1 183:1 193:20 228:7 229:17 hate (1) 77:25
games (1) 109:25
165:23 167:23,23 194:14 200:16 25:25 26:17 28:24 198:18,19,21 200:6 guess (1) 51:2 haven (1) 221:22
garden (1) 86:13
169:21 176:1,17 four-year (1) 168:10 30:22 32:5,5 37:19 201:1,16,17,21 guide (1) 128:5 hazard (1) 156:18
gate (1) 51:3
178:7 192:23 193:6 fourth (3) 25:23 128:6 37:22 41:22 42:24 207:14,19 208:12 Guinea (1) 158:19 head (3) 17:17 70:3
gathered (1) 158:11
193:14 199:20 171:6 44:18 45:23 51:13 209:16 210:1 212:4 guys (2) 157:13 220:5 87:20
Gdansk (15) 69:16,18
206:3 211:20 fraction (1) 99:6 51:14 54:10,14 214:11,19 215:19 headed (1) 9:13
88:24 90:15,16
215:16 217:5 frame (1) 42:8 56:3,15 57:20 221:4 230:3 232:18 H heading (8) 7:8,18 8:1
91:10 113:9,13
218:10 219:8 238:9 free (1) 107:8 63:13,17 64:19 234:16 236:3,14 habit (1) 233:5 11:5 75:20 85:1
114:19 115:10,15
fit (1) 50:14 freehold (9) 4:13 7:11 65:23 69:24 72:18 237:25 239:16 130:19 179:9
116:6,10 181:13,13 hairs (2) 71:25 152:18
five (22) 17:17 21:4,9 8:16 18:9 42:9,11 74:7 75:8,10 76:3 241:7 hear (2) 1:18 219:12
gearing (9) 136:12 Halcro (2) 212:24,24
24:23 69:13,14,15 151:15 155:3 162:6 78:8,12,23 79:9 Goldman (4) 38:17 heat (1) 184:18
138:1,21,22 139:3 half (22) 26:16 58:2
69:20 70:7 89:14 frequently (1) 172:25 80:20 81:12,12,13 153:15 155:13 heavily (2) 136:25
139:12 142:19 74:8 78:3 89:12
90:9,22 95:23 friend (1) 2:9 81:14 84:17,25 162:9 137:4
148:24 194:17 94:17 96:1,12
106:17 109:19 front (14) 1:10 5:12 86:14 87:5 88:2,3 good (16) 1:4 45:17 hectare (9) 11:11 88:8
general (5) 73:18,20 97:10,19,21 99:14
110:1 114:8 120:1 17:7 26:22 37:5 92:12,15 95:23 48:18 53:18 126:1 88:13 89:6 93:11
143:14 165:2 102:9 103:2 104:18
123:14 125:18 47:6 73:10 78:21 98:6 101:9,9 150:7 166:7 169:8 93:17,22 94:6,16
223:12 105:24 107:3 122:1
148:20 194:14 79:13 80:7,23 103:16,16 104:6,14 171:9 185:20 hectares (13) 32:16
generally (7) 15:19 181:9 205:22 209:8
fixed (2) 107:1 184:10 81:13 105:17 106:7,22,23 109:12 222:22 225:1 44:10 45:20 53:14
141:23 144:15 232:1
flag (3) 35:12 41:12 177:13 115:8 116:24 230:17 232:6 56:24 57:5 58:25
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
250
March 2, 2016 Day 20
65:14 66:4 75:23 135:23 136:19 160:16 176:8 increased (3) 49:24 inserted (1) 80:23
84:13,14 87:25 138:9 141:2 142:20 IFRS’ (1) 15:20 90:1 138:23 inside (1) 101:14
hedge (1) 219:25 142:23 143:12,23 ignore (1) 111:9 increasing (2) 103:17 insist (1) 192:25
height (2) 89:13 195:5 144:3 149:4 158:7 IJ (1) 214:20 110:7 insistence (1) 68:1
help (7) 5:4 51:20 163:5 167:3,6,11 ill-conceived (1) increasingly (1) 195:6 insisting (1) 241:10
78:23 79:4 80:8 175:25 176:19,24 159:24 indebtedness (1) inspired (1) 131:15
130:7 195:23 177:25 179:3,7,11 illegality (1) 42:4 227:25 instance (1) 111:20
helped (1) 175:12 181:25 185:4,23 IM (17) 15:14,16 indemnity (1) 177:15 institution (1) 193:9
helpful (4) 31:7 188:20 189:19 17:21 61:24 64:21 independent (14) institutions (4) 193:17
119:11 128:4 192:18 193:12,19 65:12 67:1 81:8 60:7 121:2 181:3 201:14,19 202:16
183:19 194:2 198:13 83:16 101:14 159:4 193:23 197:23 instructed (3) 59:12
helping (1) 89:1 199:22 203:10 160:24 179:5 198:10,15 199:2,3 60:3 65:11
helps (1) 39:14 205:25 206:18 180:18 181:22 200:17 209:5,5,6,7 instruction (1) 236:2
Helsinki (1) 113:15 211:14,16 216:4 182:9,11 independently (2) instructions (3)
hereunder (1) 203:13 218:20 219:2 imagine (3) 38:19 100:13 194:4 229:25 230:10
hidden (1) 114:14 222:14 223:7 73:22 187:2 INDEX (1) 243:1 236:22
hiding (1) 5:5 225:22 228:16 immediately (4) 55:22 India (2) 32:7 190:23 insurance (1) 166:25
high (7) 90:8,9 100:23 hold (12) 52:4 74:2 106:16 181:23 indicate (1) 185:16 Intellectual (1) 159:12
125:22 141:20 122:2 124:7 141:18 238:23 indicated (1) 233:22 intelligent (1) 173:9
168:3,5 165:10 187:14 impinged (1) 233:2 indicates (4) 52:7 intended (4) 132:14
higher (5) 39:14 204:13 223:20 implemented (1) 53:13 58:21 80:8 184:24 193:7
122:10 123:15,18 229:3 237:2,3 169:16 indication (1) 8:15 197:10
220:18 holding (2) 214:2 implication (4) 143:5 individual (3) 74:1 intention (2) 169:5
highly (3) 39:17,24 216:7 172:3,6 229:14 94:7 172:22 236:17
115:21 holds (1) 190:17 implicitly (1) 203:15 individuals (1) 157:14 intentions (1) 204:12
Hildyard (119) 1:4,6,9 homework (1) 180:1 implies (1) 147:10 industry (5) 88:16 inter (1) 159:10
5:3,8 28:10 35:6 hone (1) 231:5 import (1) 91:17 90:11 111:21 intercreditor (4) 222:7
41:2 47:22 48:6,9 honest (12) 32:17 importance (1) 131:18 116:16 117:1 222:15,18,25
48:12,21 49:7 53:5 46:25 82:11 125:7 important (7) 29:22 inference (1) 189:16 interest (40) 2:21
54:5 56:12 57:13 148:3 157:6 161:16 100:19 152:12 information (114) 97:23 103:11
57:16,22 58:1,6,8 162:22 179:24 154:7 177:7 232:16 2:18,20 3:4,14,21 105:12,19 110:14
58:11,14 62:19,21 185:15 218:10 237:5 5:10,19 6:3,17,20 111:10 134:4,12,13
63:5,25 64:8,13 224:20 imposing (1) 31:2 7:17 8:1,20,21 9:5 134:22,25 135:7,22
70:6,23 71:5 75:13 hope (12) 31:3 36:20 impossible (2) 26:14 9:14,18 10:13,14 135:25 140:21
79:4,19 81:25 82:3 63:20,24 66:19 152:9 14:3,3,8,10,22 16:1 141:20 164:20,22
84:2 108:22,25 103:19 116:21,23 impressed (1) 173:8 16:2,10,19 17:4,22 165:5,6,16 166:2,4
110:11,17,21 162:2 231:1 240:17 impression (1) 201:16 18:24,25 19:8,8,17 166:9,17,19 167:8
112:15 113:3 242:8 impressive (1) 172:22 19:18 20:7,9 21:18 167:13,22 187:8
114:21 115:3,7 hoped (1) 96:17 improper (1) 33:21 23:17 24:8 26:11 192:21 195:4
119:2,5 124:13 hopefully (2) 38:1 improve (1) 221:7 27:8 28:8,13,22 203:23 205:6,13,18
125:25 126:25 169:3 improved (1) 77:21 32:3 35:21 37:15 206:10 207:5 214:9
127:23 128:11,19 hoping (2) 66:17 improvement (5) 38:5,9 40:16 43:18 interested (13) 4:17
130:23 131:11,14 153:12 46:10,11,14 47:18 45:24 46:10,13 37:20 38:9 39:5
132:3 151:23 horse (1) 144:1 49:16 48:24 49:15 73:11 153:1 161:19 182:6
152:10,14,21 153:4 hour (3) 122:1 230:20 inaccuracies (6) 74:5,25 78:13 186:16 187:22,24
153:10,19 154:1,4 232:1 162:19 168:17,19 79:11,25 81:2 188:8 190:13 220:3
154:11,21 175:16 Housekeeping (2) 168:19,21 170:12 88:14,18,19,21 interesting (1) 38:2
175:21 178:1,3,6 231:17 243:6 inaccurate (1) 160:3 89:3 90:20,25 interests (1) 220:2
183:6,15,19 201:7 houses (1) 226:4 inaccurately (1) 63:6 91:21 121:21 122:4 interim (1) 171:15
202:12,20 230:11 HSBC (2) 187:22,24 inappropriate (1) 122:25 123:17 intermodal (18) 72:14
230:17,22 231:3,9 huge (5) 95:4 109:15 58:16 142:9,25 144:23 94:5,10 112:13,17
231:11 232:3,7,14 112:21,22 144:24 inaudible (1) 126:11 147:10 148:10,17 112:21 113:23
232:24 233:4,15,25 hugely (2) 100:24 include (4) 65:11 66:8 150:10 151:4 159:3 114:2,14,18 115:10
235:10,15 237:8,15 109:20 66:13 159:10 159:20 160:3,19 115:11,23 119:23
237:17,25 238:7,10 hundreds (1) 167:4 included (4) 38:3 88:4 162:20 163:19,21 120:3,20 121:9
238:14,19 239:6,11 hypothesis (2) 99:23 179:24 188:24 168:16 170:13 127:14
239:14,17,23 103:14 includes (2) 143:17 174:25 176:6,25 internal (7) 82:13,14
240:15,19 241:6,13 hypothetical (1) 184:7 177:2,11,13,14,16 84:6 87:24 124:7
241:23,25 242:7 104:21 including (3) 80:23 178:17 179:14,17 124:12 225:25
hindsight (3) 39:22 133:5 231:20 180:6,16 181:3 internally (1) 24:2
121:21 157:24 I inclusion (1) 64:21 182:2 184:15 international (3)
hint (2) 40:9,13 IBM (1) 190:17 income (10) 68:17 226:24 228:4,12 192:5 193:9 214:20
hire (1) 151:20 94:22 96:3 99:13 238:12 internationally (2)
ICDs (1) 89:18
historical (1) 88:14 108:19 109:16 infrastructure (5) 2:22 190:10 191:1
IDC (1) 134:24
history (1) 165:13 153:24 174:23 40:7 136:2 157:17 internet (4) 64:3
idea (8) 56:18 63:22
hitherto (1) 220:18 179:9 197:16 188:6 88:15 93:25 231:20
133:7,8 146:12
hmm (84) 9:12 23:20 inconsistencies (1) ING (1) 187:25 interpretation (1)
160:7 176:6 184:2
24:15 25:6 26:3 14:1 initials (2) 9:10 217:25 202:19
identified (5) 123:17
65:22 69:16 71:12 inconvenience (1) initiative (2) 207:13 interrupt (4) 36:20
129:1,2 160:4
74:24 75:4 76:11 231:19 217:9 63:19,22 79:15
216:2
76:18 81:1 82:19 incorporated (1) initiatives (5) 210:15 interrupted (1)
identify (7) 20:9 35:18
82:21 87:14,14 15:22 211:1,8 212:16 231:21
57:8 59:18 174:12
88:5 92:3,22 93:3,6 incorrect (6) 49:6 218:19 interrupting (1) 64:12
179:12,21
93:12 94:25 96:5 85:22 120:2,7,8 inject (2) 42:3,16 intervening (2) 106:17
identifying (1) 145:16
96:15 99:1 101:23 127:20 inland (2) 89:18,22 106:18
IFC (2) 133:5 186:4
102:7,11 105:4 Incorrectly (1) 120:1 innocent (2) 161:1 introduce (1) 120:22
IFRS (11) 15:3,22 16:5
117:21,25 119:15 increase (5) 70:20 235:11 invest (1) 203:17
16:11,14 18:21
123:2 132:12,19 89:15,22 103:18 innominate (1) 41:8 investigate (1) 63:20
19:3,9 36:23
133:24 134:2 138:21 input (2) 88:25 91:10 investigation (1)
128:1 79:4,19 81:25 82:3
investment (9) 65:25 84:2 108:22,25
89:25 103:18 110:11,17,21
110:24 153:5,10,14 112:15 113:3
180:25 201:18 114:21 115:3,7
investor (5) 152:22,22 119:2,5 124:13
153:11 154:20 125:25 126:25
159:4 127:23 128:11,19
investors (2) 152:12 130:23 131:11,14
152:19 132:3 151:23
invited (1) 153:22 152:10,14,21 153:4
involve (1) 207:14 153:10,19 154:1,4
involved (13) 2:17 154:11,21 175:16
43:3 91:14 92:8 175:21 178:1,3,6
137:24 147:11 183:6,15,19 201:7
151:11 162:10 202:12,20 230:11
209:1,13 211:2 230:17,22 231:3,9
212:15 213:23 231:11 232:3,7,14
involvement (3) 2:12 232:24 233:4,15,25
193:17 212:6 235:10,15 237:8,15
involves (2) 62:10 237:17,25 238:7,10
121:9 238:14,19 239:6,11
IRC (1) 186:4 239:14,17,23
ironed (1) 169:3 240:15,19 241:6,13
irrelevant (5) 3:21 241:23,25 242:7
55:9 56:2 80:15 justification (3) 90:4
234:16 159:9 160:17
Isle (1) 223:25 justified (1) 131:16
isolate (2) 137:11,11 justify (6) 39:2 66:14
isolation (1) 111:11 78:3 166:14 189:5
issue (9) 54:2 138:5 191:12
139:7 208:5 209:23
210:14 216:10,13 K
216:15 KBC (1) 188:2
issues (4) 32:23
keen (1) 164:3
215:15 218:18,22
keep (10) 10:25 65:9
issuing (2) 159:19
75:9 100:3 106:8,8
160:24
127:4 134:20
isthmus (1) 57:14
157:23 178:20
item (1) 175:24
Keith (15) 138:8
iterations (1) 79:10
141:10 146:6
150:24 162:7
J
163:25 192:8,8
James (1) 88:24
203:3 207:22
January (2) 171:9 212:18 213:5,17
172:2 224:8 225:18
job (6) 53:25 114:9 kept (4) 68:5 152:8
139:23 157:14 174:3 211:3
162:17,18 key (6) 3:4 60:17 83:7
joint (1) 154:16 95:4 145:19 178:11
jottings (2) 129:12 keyboard (1) 86:5
131:22 killed (1) 70:21
Journal (1) 214:21 kind (19) 5:17 9:9,22
JSC (1) 184:8 10:24 12:25 17:20
juddering (1) 57:23 20:2 28:24 29:14
judge (1) 127:12 30:11 31:5 92:6
judges (1) 127:2 133:20 136:3
July (30) 5:19 6:8,13 144:23 179:8 193:1
17:23 18:7 46:24 204:15 217:3
47:1 48:2,24 67:1 kit (27) 66:1 210:1,4,6
75:12 76:15 101:9 210:8,17,24 211:2
101:19 118:24 211:15,25 212:9
119:7,16 120:14 213:6,8,8,9,10,11
123:3,12 133:16,22 213:20,24 214:1
142:10 157:20,25 215:9,24 216:17,17
158:1 178:5 179:4 217:8 220:6,10
181:22 182:1 KIT/LPN (1) 217:11
jumping (1) 155:23 Klang (1) 91:11
June (1) 9:10 knew (5) 26:24 31:17
Justice (119) 1:4,6,9 87:19 116:16 152:3
5:3,8 28:10 35:6 know (63) 5:24 27:14
41:2 47:22 48:6,9 31:18,19 36:1,13
48:12,21 49:7 53:5 38:17 39:5 40:2,2
54:5 56:12 57:13 45:3,5,13,15 56:17
57:16,22 58:1,6,8 57:19 64:9 75:18
58:11,14 62:19,21 78:3,25 84:9 108:5
63:5,25 64:8,13 110:22,23 112:19
70:6,23 71:5 75:13 112:23 113:5 128:6
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
251
March 2, 2016 Day 20
143:13,20 144:1 152:19 155:24 156:8 157:2,4 158:1 160:15 161:24 162:14 170:5 178:22 179:22 184:1,3 189:13 196:16 215:16,20 223:4,13 224:12 231:12,18 232:24 234:2 235:11,14 236:15 238:1 239:8 240:5 242:2
knowing (2) 37:8 223:12
knowledge (3) 2:5,7 138:4
known (7) 11:12 24:6 25:4 41:16 118:11 165:7,13
knows (1) 71:13 KPMG (2) 151:20
191:10 kTEU (1) 93:10
L
lack (3) 130:25 131:8 131:17
laid (1) 189:3
Lair (4) 190:1,1,15 191:16
land (11) 12:23 13:23 44:5 57:7 59:3 60:25 62:6 77:9 89:25 146:8 180:23
language (1) 71:13 laptop (1) 45:2
large (7) 73:20 100:25 112:25 113:6 140:8 163:18 164:23
largely (2) 90:19 98:5 lasts (1) 110:1
late (3) 114:8 215:8 236:23
lately (1) 128:2 latest (1) 186:1 lawful (1) 40:3 lawyer (3) 235:21
240:9,9 lawyers (6) 37:24
38:12 127:2 151:21 162:11 204:12
lay (1) 220:2 lead (1) 52:24 leading (2) 77:16
129:20
learned (2) 2:8 37:1 learnt (3) 164:5,17,18 leave (4) 132:1 134:14
184:24 239:6 leaving (2) 143:9
166:23
led (10) 67:1 88:17 122:11 146:11 227:2,5,13 228:9 228:17,20
left (6) 29:8 51:23 56:13 58:4 80:19 185:24
left-hand (2) 25:21 57:2
legal (7) 35:13 38:6 156:4 163:12 164:1 164:3 209:5
legislation (1) 110:5 Lehman (2) 158:1,4 lemmings (1) 157:15
lend (12) 30:19 37:7 likelihood (2) 40:25 long-standing (1) 89:2 184:25 202:22 magically (1) 103:18 236:25
39:23 143:24 70:19 longer (5) 71:6,7 229:23,24 230:18 magnitude (1) 39:19 maximum (2) 52:20
157:15,17 158:3 liken (1) 70:12 94:11 231:11,25 231:10,13,18 232:7 Magnum (1) 183:17 93:14
166:7 193:10 lily (1) 209:11 look (73) 1:15,19 5:9 232:10,10,19 main (3) 105:6 157:8 mea (1) 156:23
200:16 204:17 limited (6) 12:17 22:8 6:20 12:13 14:20 233:10,10,22,24 157:9 mean (40) 4:19 5:4
221:5 75:20 117:9,13 16:4 21:25 29:11 234:2 235:11,11,17 maintain (1) 111:1 13:20 14:6 27:16
lender (55) 3:5 35:16 238:18 32:10 33:13 43:14 235:17 236:10 maintained (2) 41:12 27:18 40:24 44:7
35:17 36:1,8,13 line (57) 25:18 28:9 44:24 45:16 47:5 238:6 239:10,13,18 65:19 50:22 53:25 55:5
39:4,18 40:19,24 28:17 29:11,14,15 48:16 49:2 54:22 240:12,19,21 241:1 major (6) 88:25 71:3 75:11 80:13
43:19 143:1,6,20 29:16,21,22,23,24 55:11 58:21 59:10 241:2,10,18,22 103:11 112:1 82:7 83:7 84:5
145:7,19 150:5,18 30:5,5,11,12,25 63:9,12,24 64:15 243:5 180:24 214:3 86:10 100:12
151:4,7,10,16,24 31:1,9,10 32:23 66:23 68:3 69:3,16 Lord’s (3) 151:24 218:22 106:11 113:3 115:3
152:3,4 153:1 37:2,25,25 52:12 73:2,8 78:14 80:10 241:3,7 majority (1) 221:17 146:22 161:24,25
154:19 155:5,7 52:13,17 53:20 87:15 89:12 93:7 Lordship (61) 1:3 3:18 making (9) 107:6 161:25 172:15
156:6,8,13,17 54:1 55:2,6,17,23 98:24 100:19 6:2 17:13 20:6 108:13,16 109:8 186:7 187:23 188:4
159:4 160:6 161:15 55:25 56:7,14,16 115:23 118:2,19,20 23:21 30:23 33:17 136:6 153:21,22 188:15 189:11
164:17,18,21 57:11,13,21 58:23 123:24 125:4 133:1 34:20 48:25 58:20 204:6 220:21 191:24 194:13
165:15,15 166:1,15 58:24 59:6,8 64:22 133:15,16 135:7 62:14 67:5 69:9 man (3) 40:3 173:9 201:16 207:22
169:2 170:12 125:25 164:2 177:6 136:17 142:6,7,18 71:13 73:12 77:7 223:25 212:9 213:25
182:13 185:2,10,22 177:7 194:8,8 148:24 149:22 82:17 84:21 85:20 managed (1) 230:5 223:12 236:10
185:24 215:10,16 199:23,24 200:22 154:19 155:1,25 86:19 94:13 95:15 management (4) 74:3 meaningful (1) 14:10
215:16 222:19 201:3 224:12,23 158:22 161:4 95:17 99:9,15,17 117:13 154:24 means (12) 63:2,8
223:15 229:3 162:21 177:17 102:8 115:18 188:16 64:4 95:12 114:3
lender’s (3) 137:13 lines (7) 43:2 51:8 197:19,25 198:3 119:13 123:19 manager (4) 89:2 121:10 133:10
161:2 220:23 54:25 55:1 58:5 201:6,7 212:13 125:14 128:15,16 177:5 181:7 228:11 143:3 172:12 197:4
lenders (23) 2:21 111:5 113:21 213:2 215:23 216:1 146:23,25 150:1,13 managers (1) 159:23 223:25 231:5
66:15 68:2 133:1 link (2) 57:21 59:1 226:18 234:7,7 152:18 160:2 174:8 managing (1) 192:8 meant (8) 71:17 83:7
143:20 145:10 LinkedIn (1) 116:25 looked (8) 28:8 50:13 177:8 179:13,15 mandate (7) 60:9 146:23,25 196:14
155:20 158:12 list (5) 20:20 112:25 67:17 82:23 121:17 182:1 183:14,22 159:3 169:18 196:16 200:21
165:3 167:12 146:15 207:10 130:25 178:23 190:12 196:16,25 177:15 201:6 224:12
181:23 182:3,8,21 237:20 191:11 197:9 202:11 218:4 202:22,24 measure (2) 73:20
187:8 188:21 listed (2) 227:6 looking (24) 41:23 221:1 230:16 233:3 manifested (1) 180:17 163:18
207:15,20 214:25 228:19 55:15,16 56:7 233:21 234:2 236:8 map (1) 58:19 measured (1) 127:19
215:3 220:21 221:5 listen (6) 6:12 44:18 68:19 72:11 78:20 236:12 237:6 March (4) 1:1 173:23 medium (1) 64:23
222:8 112:9 125:3 149:15 100:15 111:5 Lordship’s (7) 17:1 173:23 242:12 meet (2) 166:3 220:23
lenders’ (1) 196:4 196:8 115:15 127:13 92:24 111:13 margin (1) 178:14 meeting (3) 170:7
lending (10) 2:23 listing (1) 228:7 132:24 133:12 127:21 132:2 230:7 marginalising (1) 23:2 172:20 186:1
42:12 140:1 153:1 literally (2) 32:5 153:6 154:23 156:6 234:23 Marginally (1) 51:7 memoranda (2) 91:1
156:18 158:6,13 237:20 185:21 202:15 lorry (3) 94:7 114:6 Marine (2) 184:2 91:21
164:13 166:5 literate (1) 16:16 206:21,22 210:24 118:16 225:15 memorandum (64)
187:24 little (16) 65:6 113:13 212:19 221:7,8 lose (3) 103:1 127:6 mark (2) 55:20,22 2:18,20 5:10,19 6:3
length (1) 65:25 146:10,20 147:18 looks (29) 13:11,14 155:15 marked (1) 181:20 6:17,20 7:17 9:14
lengths (1) 75:2 147:22 152:17 14:15 17:10 18:6 loss (9) 102:17 105:5 market (28) 8:16 9:18 10:14 14:4,22
lent (3) 40:25 166:8 160:23 173:8 24:3 26:19,25 55:3 107:17 134:8,14 73:20 85:10,14 16:2,10,19 17:4
195:6 180:15 186:11 55:11 56:9,11 135:10,15,21 136:6 86:3 87:13,17 98:7 18:25 19:9,18 20:7
lesser (1) 196:19 205:19 208:13 66:19 73:14 80:7 losses (3) 167:22 103:24 120:23 24:9 26:11 27:8
let’s (14) 4:6 32:16 209:11 221:9 240:4 80:22 81:2 86:1 168:14,14 159:13,21 187:15 28:8,13,22 35:21
37:19 78:8 94:15 live (1) 202:7 106:24 129:11 lost (4) 27:16 154:9 197:22 198:9,15,19 37:16 38:5,10
95:19 104:16 lively (1) 61:21 150:14 156:16 161:23 219:7 198:24 199:24 45:24 46:10,13
105:11 120:22 LiveNote (1) 64:8 178:16 186:4 225:4 lot (24) 9:4 33:13 44:6 200:7,15,22 201:3 48:25 49:16 73:11
162:21,22 166:23 LLC (11) 20:16 23:19 225:10,23 226:5 44:13 45:19,19 201:25 202:7,7 75:1 78:14 79:11
166:25 228:3 23:23 24:13,18,25 228:14 50:22 64:20 65:7 209:7 220:17 79:25 88:22 122:25
letter (19) 169:18,25 146:8 147:17 184:8 loop (4) 54:15 55:10 73:22,24 89:16 markets (3) 32:8 40:8 123:17 142:10,25
192:16,21 193:3,4 184:9,10 55:13,20 100:22 146:20 40:11 144:23 148:10,17
194:19 195:4 loading (1) 68:12 looped (1) 57:23 147:23 150:7 165:7 mass (1) 230:19 151:4 159:20 160:3
199:18 200:12 loan (16) 138:20 loosely (1) 33:8 165:18 181:8 massive (1) 230:6 160:19 162:20
201:6 202:23 203:8 139:8 140:4,18 Lord (127) 2:9,10,11 207:14 208:9 214:8 material (18) 45:15 168:16 170:13
204:8,9,15,20 144:14 155:25 5:9 35:15 41:2,15 230:1 233:14 49:16 50:8 73:17 174:25 176:15
205:3 212:24 166:10 170:3 47:24 48:5,5,8,10 lots (3) 113:13 114:14 73:18 98:21 129:6 177:11,13 178:18
letters (1) 171:21 191:10 201:16 48:13,23 49:11 222:17 168:23 174:10 179:14,17 182:2
level (17) 96:13 98:3 202:1,7 210:4 53:4,11,11,16 54:3 loud (1) 29:1 207:19 234:21,25 memory (15) 16:4,5
100:23 101:6 215:1,18 221:9 54:3,6,10 56:15 low (4) 11:17 86:10 235:2,4,25 236:18 45:21 47:15 55:23
103:17 108:21 loaned (1) 143:21 58:13,15 62:22 93:23 200:21 236:20,24 57:10,20 103:6
132:17 136:11,14 loans (10) 11:14 63:1,10,11 64:5,5 lower (2) 94:9 105:8 materially (2) 49:24 126:11 139:6
138:1 139:3 140:16 164:16 195:7 64:15 71:9 75:14 lowered (2) 41:11 160:3 140:17 148:5
201:25 220:10,17 201:24 202:13,13 79:4,8,21,23 82:1,1 110:25 materials (2) 90:19 173:19 179:24
223:5,10 202:14 215:19,22 82:4 84:12 108:23 LPN (3) 217:8,15,17 91:17 213:8
leverage (9) 111:8,17 219:22 108:24 109:3 LPNs (2) 210:18 mathematical (1) 73:4 men (2) 38:12 100:4
111:19,20 132:20 local (1) 74:3 110:12,19 111:2,2 211:15 mathematically (3) mention (1) 156:1
137:13,15 164:10 location (1) 11:17 115:9 119:3,3,6 lucky (1) 224:1 12:4 29:10 91:2 mentioned (9) 20:24
186:5 logic (2) 73:4 149:12 124:19 126:2,2,20 ludicrous (1) 103:20 mathematics (1) 91:3 32:4 124:8 161:11
leveraging (1) 186:15 logistical (1) 238:17 126:20 127:25 Luncheon (1) 128:13 Matt (1) 199:5 161:11 190:11
lie (1) 184:13 London (1) 231:6 128:15,20,20 129:9 lurking (1) 241:20 matter (9) 127:9 205:15 221:6 240:2
life (3) 40:10 71:1 long (12) 4:15 31:3 129:25 130:9,12,23 197:22 198:9,16 merely (4) 4:20 67:13
115:12 64:23 111:18 131:10,10,13,19,19 M 200:6 202:10 210:6 164:15 211:3
light (11) 16:11 32:24 118:17 127:17 132:4,4,6 133:17 MacDonald (1) 199:5 230:20 236:11 message (3) 224:8,15
35:23 40:22 43:18 142:15 165:13 155:4 175:17,18,22 matters (7) 4:25 30:18 233:3
Macpherson (2)
82:16 84:10 85:21 199:10 215:20 178:2,2,4,7 183:1,7 30:20 116:20 metal (3) 45:14 50:3
192:19 194:23
86:4 139:5 241:20 231:2 235:22 183:7,11,11,16,21 129:21 174:19 72:14
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
252
March 2, 2016 Day 20
methodology (3) minus (3) 135:10,16 168:1 169:10,11
77:14,22 89:11 135:18 186:20 187:4
metre (2) 77:18 88:9 minute (4) 100:15 188:22 189:9,11
metres (16) 51:12 122:15 156:15 193:15 194:1,3,7
52:20 55:8,8 56:1,1 165:1 196:3,5,12,18,18
74:15,15,16 76:6,6 minutes (15) 21:4,9 196:20,23 197:1,14
76:7,8 77:19 90:8 22:3 24:23 85:24 197:17
113:9 89:10 120:1 123:14 modelled (2) 71:10
mid-2008 (2) 47:15 126:3 138:25 168:9
137:5 148:20 230:9,9,14 modelling (10) 43:7,9
mid-October (1) 192:4 231:2 62:4 66:9 68:19
mid-point (1) 171:9 mis (1) 126:11 119:14,25 124:19
middle (3) 68:9 misinformation (1) 126:21 133:15
154:10 204:25 145:11 models (4) 66:25 67:4
mild (1) 111:20 misleading (2) 12:15 183:13 197:1
mile (1) 58:2 150:15 modern (3) 89:10,11
miles (1) 89:25 misquote (1) 146:2 89:14
million (176) 2:24 4:6 missed (2) 24:3 82:8 modified (1) 239:23
4:7,8,9 7:4,12 8:4,9 mistake (1) 82:8 modify (1) 31:25
8:19 9:3 10:2,12 mistaken (2) 147:6 moment (11) 14:25
12:3 13:15 16:23 148:7 18:3 27:15 76:17
18:1,10,18 26:20 mistakes (1) 161:2 94:13 98:24 115:12
26:21 27:3,7,7 misunderstanding (1) 125:6 198:6 230:21
28:13,14,20,21 204:14 239:6
29:5,6,7,9,13 32:16 misunderstood (1) moments (1) 86:19
33:24 35:19,20 154:18 money (46) 3:13 4:14
36:6 38:13,14 mitigation (1) 199:9 30:19 37:7 71:8
39:23 41:5 43:5,22 Mitsui (1) 186:17 91:13 101:5 108:25
78:4 80:24 94:20 mixture (3) 41:8 113:7 110:23 111:15
94:21,21 95:24,24 113:8 132:23 134:21
96:11 97:6,20 99:2 Mm (87) 9:12 23:20 143:21 144:2,18
99:14,14,19,20,20 24:15 25:6 26:3 149:8,19 150:6
100:9 102:16,16,25 65:22 69:16 71:12 152:1 153:1 155:8
102:25 103:4,7,12 74:24 75:4 76:11 155:12,13,15
103:14,15,19 104:1 76:18 81:1 82:19 156:14 157:5,15,17
105:3,12,19,22,23 82:21 87:14,14 158:3,13 164:5,19
105:25 106:5 107:1 88:5 92:3,22 93:3,6 164:24 165:5 166:6
107:4,4,9,10 93:12 94:25 96:5 166:7,8 167:8
109:23 111:4,10 96:15 99:1 101:11 171:19 172:8,10
123:21 134:3,8,11 101:23 102:7,11 174:15 200:16
134:12,15 135:10 105:4 117:21,25 204:1,17 215:11
135:16,18 137:2,15 119:15 123:2 monies (1) 165:6
137:16,22 138:20 132:12,19 133:24 month (16) 81:21
139:8 140:13,13 134:2 135:23 84:3 86:22,24,25
141:4,8,17 142:14 136:19 138:9 141:2 87:3 106:15 173:19
142:16,21 143:1,7 142:20,23 143:12 200:21 201:2 207:6
143:8,14,24 145:3 143:23 144:3 149:4 207:9 208:15,22
145:4,8,10,12,20 158:7 163:5 167:3 209:3 215:7
145:23 146:17 167:6,11 175:25 monthly (1) 206:16
148:2,12,18,21 176:11,19,24 months (5) 76:1
149:2,8,10,14,19 177:25 179:3,7,11 173:22,24 208:23
150:14 151:5,8 181:25 185:4,23 239:25
155:6,11,14 156:8 188:20 189:19 moral (1) 156:18
156:10,11,14 192:18 193:12,19 morning (21) 1:4 28:9
164:15 174:16 194:2 198:13 40:7 64:1 102:3
176:4,5,10,21,22 199:22 203:10 146:16 148:13
177:22,23 178:8 205:25 206:18 151:12 158:24
180:7,8,8,18 190:3 207:24 211:14,16 162:13 167:25
195:6 202:4,5 216:4 218:20 219:2 184:1,14 190:11
205:12,17 206:4,7 222:14 223:7 205:15 221:6
206:10 207:5 225:22 228:16 231:25 233:20
208:16,21 209:9 mode (1) 167:16 234:5 235:1 236:5
211:22,24,25 212:2 model (80) 43:11,14 mouth (2) 34:24
219:12 220:19 61:11 65:12 67:1,2 37:17
221:5 67:6,9,9,14,19 69:3 move (7) 58:15 89:19
million-odd (1) 69:10 70:1 94:18 108:17 110:22
178:17 95:17,17 98:24 137:8 242:4,8
million-worth (1) 99:10,12,12 100:7 movement (2) 109:11
152:15 101:10,19 104:12 109:11
millions (2) 167:4 104:20,21,21 106:3 moving (4) 43:24
178:14 118:24 119:7,8,8 89:17 127:18 180:9
mind (16) 5:14 10:7 119:16 120:11,14 MSC (1) 113:3
31:8 41:3 55:9 121:5 123:3,12,24 Mtg (1) 186:18
62:22 75:8 80:17 124:2,6,11,20 mud (6) 44:6,13,17
82:4 112:15 147:2 125:11,14 126:6,16 45:19 50:22 146:20
147:3 157:13 171:3 126:18 133:17,23 multi-dimensional (1)
185:21 197:7 135:4,9 136:1 67:11
minimal (1) 115:20 137:9 161:20 multi-dimensions (1)
ministry (1) 34:3 162:22 167:21 96:22
multi-lateral (2)
201:13 202:16 multilateral (1)
201:19
Multilaterals (1)
193:17
multiple (2) 108:3 110:13
multiplying (1) 197:15 Mundra (1) 91:11 muster (3) 32:12
38:24 39:1
mustn’t (2) 103:3
128:8
mutually (2) 212:3
215:21
N
name (7) 21:2,8,12,13 22:3 151:1 240:1
names (1) 22:4 narrow (1) 160:13 Natalia (1) 213:9 nature (4) 34:10 50:9
95:10 222:10
Nazarov (12) 233:16 234:24 235:7 236:4 236:11 237:9 238:3 239:3,25 240:6,15 241:8
Nazarov’s (3) 234:3,15
241:14
NDAs (1) 182:10 near (1) 69:1
nearer (2) 87:4 123:9 nearly (1) 218:11 necessarily (14) 3:6
3:17 41:22 43:8 59:5 68:21,21 154:19 156:22 164:12 165:22 167:15 171:13 216:17
necessary (7) 1:11 59:19,23 199:10 237:1 241:16,17
need (35) 16:4 43:12 59:13 61:17 69:2 89:16 94:1,6 127:5 141:8,18 146:4 153:17 182:16 193:15 195:13,25 196:6,12,24 197:23 198:10 201:12 202:14 213:7 229:24 230:4,9 231:2,4,11,22 233:13 234:1 239:11
needed (11) 15:16 43:4 141:7,12 160:20 209:1,4 216:7 223:13 235:6 235:7
needs (2) 231:23 236:21
negate (1) 214:4 negative (1) 213:25 negatively (3) 216:8
216:19,25 negotiating (2) 37:20
158:19 negotiation (2)
144:24 152:24 net (1) 99:17 network (1) 76:13 Neutralis (1) 82:15 never (14) 14:4 66:22
79:16 82:14,15 oath (5) 3:18 23:21 210:14 211:6
104:13 192:3,5,11 84:21 86:7 95:16 212:17 214:3
203:6 204:16 225:1 object (2) 128:20 216:10 218:5
228:12 229:21 129:22 221:11 222:23
nevertheless (1) objecting (1) 62:21 223:2,6,10 225:3,5
127:3 obliged (1) 35:12 225:20,25 226:1,19
new (13) 50:5,25 51:3 obtain (2) 59:23 154:6 226:23,24 227:2,3
51:3 52:2 65:10 obvious (1) 70:24 227:13,16,20 228:9
69:12 77:11 140:11 obviously (17) 30:12 228:10 229:4
165:23 166:10 63:22 85:11 110:2 OMG’s (1) 151:17
167:17 181:10 129:18,20 130:8 OMGP (4) 11:10 20:18
nice (2) 51:2 64:3 138:21 150:25 25:16 149:18
nicest (1) 194:11 200:6 213:15 223:8 omission (1) 49:20
night (1) 231:6 229:25 234:20 once (15) 16:8 37:19
nightmare (1) 32:8 239:15,20 242:2 42:19 49:4 69:1
no-go (2) 97:1 98:6 occasion (2) 61:22 94:15 97:19 100:10
nominal (3) 22:14,21 240:1 134:13 135:22,24
99:6 Occasionally (1) 79:5 168:7 170:12
non (1) 144:20 October (25) 6:10 182:24 241:14
non-international (1) 16:18 17:4,10 one’s (1) 223:13
190:25 46:19,22 47:5,20 one-month (1) 53:25
non-recourse (3) 47:24 48:7 49:7,9 one-page (1) 27:19
132:23 133:6 137:8 49:11 75:18 147:9 Onega (6) 167:16
nonsense (1) 78:7 172:16 179:6 185:5 180:23 181:5,9,19
nonsensical (4) 85:17 185:10 186:4 187:9 211:19
118:8,9 123:22 203:5,5 205:1 ones (8) 77:20 112:19
Nordea (1) 188:12 237:12 112:23 113:7
normal (3) 67:15 odd (1) 222:2 114:25 115:1
98:19 197:25 offer (6) 137:3 174:1 178:25 227:9
normally (2) 19:4 195:22 201:11 OOO (1) 22:15
188:11 203:17 204:8 open (7) 75:9 79:10
north (4) 53:15 57:4 offered (1) 221:3 101:12,17 130:8,10
58:2,9 offering (1) 195:23 178:20
north-east (1) 58:10 offices (6) 50:25 51:1 operating (4) 69:8,10
Norwood (1) 225:19 51:3 52:3,9 84:10 158:18 230:4
note (15) 17:1 20:3,4 official (2) 33:21 43:5 operation (6) 33:10
67:6 92:24 180:14 officially (1) 225:20 70:9 111:22 118:3
210:4 217:1,3,10 offshore (1) 111:17 121:9 122:18
217:21,22 218:4,8 oh (5) 17:17 46:20 operational (4) 64:9
225:19 161:10 191:10 69:19 166:3,18
notebook (1) 45:10 223:25 operations (1) 64:24
noted (1) 85:7 oil (1) 43:12 operator (2) 89:2,21
notes (2) 21:16 45:6 okay (19) 37:20,21 opinion (3) 90:13
notice (2) 129:7 162:2 46:22 81:12 99:18 141:4 157:18
noticed (4) 64:1 105:16,22,25 opportunity (2) 66:22
112:23 161:18 106:14 107:9,17 192:11
228:12 109:15 113:9 opposite (1) 113:22
notion (2) 152:11 120:22 121:15 optimistic (1) 170:2
190:17 124:8 212:23 213:3 Optimistically (1)
notwithstanding (2) 223:21 171:6
70:19 207:8 old (1) 45:2 optimum (1) 71:6
noughts (1) 83:3 OMG (113) 2:14 3:20 option (2) 137:10
November (3) 147:9 7:11 8:3,8 9:13 203:9
205:4 215:8 10:11,11 12:18,20 options (2) 36:8
NPV (2) 94:20 99:17 14:8,21 18:9,17 208:14
nuclear (2) 161:13 19:24 20:17 25:10 order (20) 9:16 15:16
163:1 25:11 36:16 43:2 34:2 39:19 42:15
number (29) 6:7 9:23 52:14 75:20 82:14 43:9 98:7 141:22
33:18 39:10 49:7 111:7,13 132:21 148:6 154:6 160:19
65:24 78:10 79:5 136:25,25 138:2,8 165:5 193:9 195:13
84:8 85:17 86:10 138:21 139:4,16 208:7 222:20 231:5
86:23 96:6 116:9 140:10 141:23 234:12 237:11
123:23 128:25 142:14 143:14 240:24
167:19 176:1 144:15,21 145:3,13 ordered (1) 238:4
180:12 188:7,21 145:25 147:11 ordinarily (1) 235:17
192:24 195:24 149:6,18 150:10 organisations (1)
200:13 210:14 151:6 160:20 59:13
212:14 216:5 163:19 164:7,17,19 organised (1) 174:21
221:20,22 167:7 169:6,23 organising (1) 210:23
numbers (16) 32:25 172:12,16 173:12 orientate (2) 17:7
33:3 102:15 106:12 175:1 176:4,7 80:18
106:17,18,21 177:1,22 178:11 original (3) 71:19
125:15,19 155:21 179:20 180:5 181:2 76:25 88:2
156:24 179:18 186:7 188:14,17 originally (3) 49:14
180:3 187:3 197:16 193:23 194:4 132:16 134:1
212:1 198:15,21 202:23 orthodox (3) 88:12
205:11,12 206:8,14 169:10,11
O 207:4,16,17,20 Oslo (2) 184:2 225:15
208:14,19 209:25 ought (1) 9:6
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
253
March 2, 2016 Day 20
outcomes (1) 38:22 output (1) 76:19 outright (1) 221:15 outside (3) 52:13,18
53:8
outstanding (2)
137:23 174:21 overall (2) 44:10
171:24 overheads (1) 100:4 overlapped (1) 140:7 overnight (3) 158:12
231:24 232:12
overwhelming (1)
151:13 owned (8) 11:11
65:15 146:8 184:10 184:14,15 189:24 216:23
owner (4) 150:5 155:7 156:13 161:9
owners (1) 154:14 ownership (2) 159:12
184:5
owns (2) 56:15 75:23
Oxus (14) 2:17 9:15 19:7 80:5 82:15 159:17 162:15 163:15 177:1 196:3 199:3 217:10,14,17
Oxus’ (1) 219:4
Oxus/OMG (1) 217:16
P
P&L (2) 197:12,18 pace (1) 158:11 pack (1) 241:11 page (105) 1:20,25
6:24,25 9:10 11:5 12:13 13:1,4 17:6,7 17:24 18:5 20:12 21:21 22:11 23:16 25:2 26:9 28:9,24 29:15,15,17,18,22 29:22,24,24 30:3,7 30:8,11,12,22,24 31:1,1,9 47:5,24 49:7 54:14 72:18 73:3,5 74:8,13 75:9 78:25 79:13 80:7 80:11,23 81:14,15 81:15 82:1 85:4 87:9,10 88:4,7 92:23 93:15 101:13 106:22,24 112:24 114:21 117:2 118:25 135:20 138:16 142:11,11 156:6 175:13,24 176:1 178:20,22 179:8,13 183:18 184:4 187:3,18,19 188:7,12 193:5 195:11,24,24 197:20 201:9 203:7 206:19 217:23 219:8 220:16 224:25 225:10 243:2
pages (7) 9:8,9 29:19 80:25 114:17 118:11 119:3
paid (12) 3:2,20 4:18 39:11,19 42:2,15 137:22 155:3 169:16 173:20 201:1
pair (1) 192:10
pale (1) 56:9 153:23 persuasion (1) 70:25 117:22 119:1,6 20:17 25:10,11 premises (1) 45:8
Panorama (1) 34:5 participation (2) persuasive (2) 66:17 122:12,12 128:15 89:16 92:21 115:4 preparation (2) 2:17
paper (8) 62:15 63:2 192:13 210:4 152:7 132:9 133:15,20,21 115:5,6 116:12 235:20
73:2 77:24 129:22 particular (12) 13:22 Pessimistically (1) 135:5,6,20 136:8 posing (1) 9:16 prepare (4) 37:22
130:20 184:16 70:4 123:4 129:22 171:7 136:18 138:7 142:8 positing (4) 38:16 148:7 233:13 242:1
229:21 145:17 156:19 Petersburg (17) 8:17 148:9 150:2 155:11 75:5 98:16 99:4 prepared (11) 1:16,20
papers (1) 184:3 167:14 208:1 11:12 65:3 70:17 171:11 174:24 position (18) 34:14 5:10,16 15:14
paperwork (1) 32:1 218:18 222:19 74:1 85:10 87:12 175:1 176:1,12 35:2 38:4 128:20 62:14 63:7 78:2
para (1) 176:2 227:22 240:5 113:14,22,24 177:18 178:9,20,21 155:14 165:8 130:3 196:3 203:24
paragraph (90) 5:22 particularly (3) 20:9 114:19 116:1 179:8 180:19,20 166:14 186:2,12 preparing (3) 9:17
6:25 7:9,17,21 13:1 93:23 224:22 118:21,21 121:1,3 181:21 183:23 193:2,10 235:6 14:22 130:3
15:1,12,15 18:14 parties (1) 124:9 172:24 184:22 185:1 236:3,15,20 237:8 prescribe (1) 13:2
46:4 59:11,15 partly (1) 11:13 Petroles (1) 225:19 188:19 192:12,15 237:24 238:1 present (1) 99:17
64:15 66:23 72:7,9 partner (1) 117:16 phase (9) 32:5 37:23 194:19 196:17 positions (1) 153:12 presentations (1)
72:18 74:12,20 Partners (1) 158:18 68:10 98:6,20 202:6 203:7 205:2 positive (2) 170:8 173:1
75:22 82:2,22 85:1 party (5) 3:3,12 33:8 101:7,7 193:6,14 210:1 212:13 217:4 186:13 presented (1) 159:24
85:5 87:7,10 92:22 203:19 235:11 phases (4) 75:25 223:2,16 225:18,19 possible (13) 27:16 presenting (1) 223:9
94:24 111:25 pass (2) 38:24,25 96:24,25 97:1 pledged (3) 133:11 38:22 63:21 65:19 press (1) 83:7
115:14 116:2 126:4 passive (1) 232:25 phenomenally (2) 137:7 220:23 68:11 78:3 110:4 pressed (3) 28:11
126:6 132:11 passport (1) 223:24 209:19,21 pledges (1) 223:5 129:13 159:17 133:21 160:18
136:20 138:18 path (1) 160:14 philosophical (3) pledging (1) 219:21 161:2 194:11 pressing (6) 32:3
140:22,25 141:1 pause (5) 31:11 58:11 153:20 207:22 plot (12) 13:22 52:14 209:15 216:5 150:23 160:16
145:22 146:4,22,24 64:10 180:10 208:5 52:19,19,22 56:16 possibly (4) 145:18 162:7 208:6,6
147:4,5,10,15,20 218:14 photocopied (1) 56:19 57:7 59:7 179:4 194:10 pressure (1) 203:3
147:21 158:22,23 pay (19) 3:15 109:5,9 119:4 62:6 65:24 68:20 209:24 presumably (10) 6:16
159:16 161:18 114:13 143:8 144:8 photograph (5) 51:15 plots (1) 12:24 post (1) 128:23 46:6 51:6 116:15
169:12 172:19,21 148:22 164:20,22 54:18,22 55:15,16 plug (1) 168:7 post-dated (1) 179:4 126:18 150:5,10
176:17 177:19 164:25 165:5 166:1 photographs (9) plugged (1) 61:15 postdated (1) 16:19 166:8 187:5 204:14
178:7 180:19,22 166:16 167:8,13 44:21 45:5,14 plus (2) 53:14 151:21 postpone (1) 98:18 presume (1) 41:22
181:21 182:18,19 206:16 207:10 48:17 51:13 54:11 pm (9) 126:25 128:11 pot (1) 145:13 pretty (10) 53:18 56:1
189:7,18,21,23 208:22 227:12 54:12 56:3,5 128:12,14 183:8,10 potential (38) 2:21 57:11 58:22 111:20
190:8 191:13 paying (2) 105:11 phrase (2) 27:17 231:14,16 242:10 3:5 4:16 7:18,22,22 190:22 202:7,17
195:21 196:1,9 209:3 152:10 point (47) 23:7 35:25 8:11 11:18 18:13 213:9 240:1
197:10 198:3,4,7 payment (1) 43:4 physical (4) 44:4,5 36:21 45:18 55:17 23:12 36:8 37:10 prevail (1) 66:18
198:12 199:20,20 payments (22) 29:4 77:8 227:10 61:16 67:22 68:18 39:10 42:3 68:2 prevailed (1) 66:13
203:8,11 204:15 31:14,16 33:19,21 physically (2) 44:7,8 79:16 85:23,23 72:20 76:25 89:8 prevailing (1) 100:8
205:9 206:20 210:2 34:9 37:8,9 38:15 pick (8) 113:17 114:7 87:24 90:12 97:21 97:16 142:25 143:6 prevent (1) 131:2
210:3,6 222:3 39:18,25 40:18,21 126:20 128:15 104:5,13,13 109:4 153:24 154:13 previously (1) 17:23
paragraphs (5) 72:6 41:16,16,19 42:1 140:23 159:15 109:6 112:12 155:5 159:4 164:15 price (11) 11:15 14:16
78:14 81:16 112:4 42:15 43:9 165:17 171:2 195:24 119:21 121:11 165:4,15 166:16 19:2 36:6 41:4
195:10 166:4,19 picked (2) 118:15 128:6 130:23 132:2 181:23 182:3 187:6 52:15 65:7 147:23
parallel (4) 34:18 pears (2) 108:22 158:1 132:13 139:11 187:20 206:15 151:14 184:11
210:9 218:23 114:20 picks (1) 142:10 142:10,24 143:20 209:21 210:20 207:5
219:14 pecking (1) 222:20 picture (2) 55:20 58:3 145:19 147:14 220:23 222:8 Pricewaterhouse (1)
pardon (9) 5:7 44:12 penultimate (1) piece (5) 3:4,14 7:25 155:4,22 157:3 potentiality (1) 153:8 194:7
48:3,4,6 124:25 175:17 129:22 130:20 159:22 162:14 potentially (6) 38:8 print (1) 183:16
125:10 188:17 people (12) 3:8,9 74:4 pieces (1) 171:2 166:2 171:12 39:5 207:4 216:9 priorities (1) 207:10
212:21 84:15 110:12 pink (1) 175:18 172:12 183:3 216:12 221:12 priority (4) 197:22
parent (7) 23:13 114:10 162:2,11 place (5) 98:2 110:24 184:16 201:5 203:6 pounds (1) 4:1 198:9,16 222:8
142:21 149:1,17 173:4 179:19 213:5 156:12 231:24 204:16 209:11 powers (2) 66:17 private (1) 181:24
151:6 155:5 156:14 239:21 238:9 215:20 152:8 privilege (3) 238:7,8
Paribas (24) 38:18 peoples’ (1) 90:20 plain (1) 204:6 pointed (1) 54:15 practically (2) 111:16 239:12
189:20 190:12 percentage (2) 86:3 plainly (1) 68:18 pointing (4) 52:5,18 137:6 privileged (1) 234:15
192:12,16,21,25 87:12 plan (1) 104:10 92:22 124:16 practice (9) 15:20 privy (1) 225:4
193:8 194:23 perfect (1) 119:10 planned (2) 65:25 points (8) 48:25 94:23 88:15 111:21 probably (45) 18:5
195:16,25 196:11 perfectly (7) 68:11 141:6 127:11 128:16 189:12 195:7 199:1 26:17 33:13 37:20
197:2 198:19 91:2 98:18 130:17 plans (4) 7:9 59:14 129:15 155:18 199:13 200:19 41:1,14 43:23
200:14 202:23 186:22 197:17,25 169:14 173:1 174:24 236:12 222:6 46:18 48:3 49:9
203:15,22 204:6,16 perform (1) 65:15 plant (1) 167:18 poor (2) 65:5 147:17 pragmatic (1) 235:24 51:1 55:17 70:1
209:10 214:5,10 performance (4) play (2) 109:24 164:9 Popov (3) 92:19,24 pre-tax (5) 168:13,14 77:16 82:10 83:21
215:6 23:13 154:12 playing (1) 124:11 112:18 176:4,22 177:23 86:20 87:20 99:7
Paris (1) 79:20 237:10 240:10 plays (1) 212:5 port (42) 3:11 11:10 precise (1) 47:15 113:11 115:1
parked (1) 58:4 performing (1) 203:14 please (110) 1:3,7,14 11:12,15 25:15 precisely (1) 42:25 124:18 128:7
Parker (12) 138:8,18 perimeter (1) 52:18 5:17 6:20,22 7:7 44:11 61:2 62:5,11 predated (1) 179:6 143:17 148:21
146:14 192:8,17 period (4) 84:14 110:3 9:6,23 10:24 12:8 64:24 68:6,20 predates (1) 158:1 160:24 161:16
213:5,20 216:3 116:15 171:15 12:25 17:20 18:13 69:10 75:2 77:9 predicated (2) 70:7,23 163:23,25 180:14
217:7 224:7 225:2 perjuring (1) 227:17 19:20 20:2 21:1,16 90:18 91:5,11,13 predicating (1) 75:1 183:4 185:11,13
225:13 permission (1) 127:21 22:13 23:8 24:12 91:16,17,20,23,25 predicted (1) 134:3 187:2 188:10 190:6
part (25) 8:16 14:2,21 permissions (1) 60:5 24:22 28:1,1,24 92:10 96:23 106:25 predicting (1) 69:22 203:1 205:19 208:3
47:12,12 48:19 permits (2) 59:23 29:1,14,18,19 30:3 108:17 111:16 prediction (1) 134:12 209:8 211:10,22
49:3,20 56:19,23 60:10 30:7,9,15,22 31:10 114:11 116:19 preference (3) 70:11 214:16 217:18
59:9 62:9,9 68:1 persisted (1) 71:5 44:3 51:15 54:14 117:3,8,11,13,16 71:6 233:12 235:1
83:12 84:23 86:20 person (4) 3:15 67:15 59:10 60:11 64:16 117:18 118:22 preliminary (5) 195:12 probative (1) 131:20
94:1 135:3 141:22 88:23 230:1 73:9 74:7 75:8,10 158:18 166:25 195:18 196:5,12,23 problem (9) 40:23
151:2 159:5 203:23 personal (1) 220:12 75:10 78:15 81:12 184:1 211:17 Premina (2) 12:17 94:1 104:18 108:22
215:7 223:3 personally (2) 8:22 81:13 84:25 88:2 Port-Evo (3) 117:4,7,8 22:8 221:12 231:8
partially (2) 56:11 93:24 92:12 95:15 101:13 portfolio (3) 225:15 premise (2) 76:19 238:17 239:1
148:22 perspective (1) 38:6 101:17 106:22,24 225:19 229:11 77:8 241:15
participate (2) 63:23 persuading (1) 182:5 111:23 116:25 ports (11) 12:18,20 premised (1) 134:21 problems (2) 109:8
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
254
March 2, 2016 Day 20
168:25 198:25 199:9,10,25
procedure (1) 186:22 200:2,11,22 202:6
procedures (1) 162:25 203:18 204:1,18
proceed (1) 217:16 205:7 206:9 207:8
proceeded (3) 168:1 208:8,8,10,19
233:7 241:18 209:19 210:16,23
proceedings (6) 2:12 211:13 223:4
4:25 10:21 25:4 projected (4) 60:12,15
27:25 28:5 69:12 87:11
process (10) 35:16 projecting (2) 65:16
37:19 42:2,4 60:8 85:7
159:8 160:20 196:7 projection (1) 132:10
201:22 234:21 projections (3) 69:4
procuring (1) 41:9 70:15 159:14
produce (4) 15:16 projects (7) 26:17
91:20 184:21 40:7 157:17 210:9
240:25 212:6 217:16,18
produced (7) 1:11 promulgated (3)
115:24 124:20 103:5 125:14
128:2,18 185:12 205:10
190:10 promulgating (1) 90:3
produces (1) 130:5 prone (1) 180:13
Production (1) 184:9 pronounce (1) 177:3
productive (1) 94:6 proof (2) 130:1
productivity (1) 93:10 159:12
professional (3) 159:7 proper (1) 162:18
159:22 162:17 properly (1) 129:20
profile (2) 116:25 property (17) 3:24
145:4 8:16 16:22 19:2,5
profit (17) 100:19 32:12 39:15 43:16
102:18,20 105:25 51:9 55:4 146:9
107:17 109:14 151:1,15,22 153:7
134:3,11,14 168:14 159:12 162:6
175:1 176:2,5,17 proportions (1) 76:14
176:22 177:23 proposal (4) 159:25
178:9 195:1 199:21 210:4
profit/loss (1) 101:2 proposed (9) 44:3
profitability (3) 95:23 48:21 49:1,3
132:10 168:8 140:24 189:6
profitable (11) 70:13 210:10,18 220:19
70:18 100:13 proposing (7) 216:17
107:20 108:20,21 230:11,12,13
109:12,17,21 234:23 235:9,24
135:24 209:19 proposition (4)
programme (1) 34:5 100:16,17 133:13
project (127) 2:13,25 165:3
3:4 4:5,8,15,16 7:8 propositions (1) 63:15
20:8 23:10,25 prospect (2) 43:20
24:16 31:21 34:23 154:11
35:17 37:1,11 39:9 prospective (1) 187:8
39:16 40:20 41:24 proved (3) 112:7
42:10 43:7,20 44:2 117:15 120:8
56:19 59:9,22,24 provenance (2) 78:19
60:12,19,21 66:25 117:19
69:23 71:11 74:10 provide (12) 95:11
92:6,8,13 95:10 128:4 129:14 159:9
96:13 97:12,18,25 174:9,10,23 186:12
98:4 99:9 100:10 187:7 193:7 203:18
100:24 101:21,25 204:1
104:5,14 107:18 provided (8) 8:1
108:1,3,10 109:20 169:24 173:13
126:14 132:10,14 176:7 220:20 238:5
132:17 133:7 134:1 238:14,16
134:6 136:2 137:9 Providers (1) 187:20
137:12,25 139:2,19 providing (2) 152:20
139:22 140:24 196:3
141:21 142:1 144:7 provision (1) 156:5
144:16 145:24 proximity (2) 3:10
151:11 152:5 53:25
153:24 155:15 prurient (1) 157:12
160:5 161:15 PSA (1) 113:3
162:10 163:9 164:6 PSC (3) 191:25 206:24
164:11 170:10 208:7
171:13,24 172:13 public (3) 73:23 74:6
181:7 182:6 184:1 181:23
185:20 186:16 purchase (16) 11:15
188:16 191:25 12:9 13:11,14,22
192:14 193:10,15 14:4,16 19:2,4
194:1,17 195:15 22:14,21 26:6
35:20 36:6 41:4 151:14
purchased (5) 10:2,12 11:10 146:7 180:23
purdah (1) 232:21 pure (2) 113:8 115:12 purely (3) 118:12
166:21 191:8 purpose (6) 2:20
97:14 99:10 143:21 184:24 215:17
purposes (7) 2:3 9:17 15:10,10 26:10 104:9 122:5
pursue (1) 207:6 put (64) 8:7,9 14:10
16:9 20:18 25:2 26:22 33:22 43:15 51:2,3 53:3,20 59:1 83:4,15 84:8 89:19 103:18 105:14 109:3,18 113:18,25 114:1 118:15 120:5 122:22,25 124:14 126:23 131:5 142:21 148:13 149:1,13,18 150:19 152:17 154:15,24 155:6,8,12,14 156:14,23 159:21 160:2,4 161:21 163:2 166:13,14 171:3,21 180:15 186:9 188:25 192:7 195:8 201:4 207:20 222:11
Putin (1) 34:6
puts (2) 101:2 236:8 putting (13) 27:12
34:24 37:17 50:8 61:25 90:14 97:18 109:6 121:7 149:25 154:6 179:16 201:24
puzzled (1) 141:25 puzzling (2) 209:16,18
Q
qualify (1) 127:5 quality (2) 48:18 56:6 quarter (3) 99:14
171:6,7
quasi (1) 129:14 quay (3) 77:18 88:9
146:20 quays (1) 77:19 queried (2) 41:6
189:24 queries (1) 14:15 query (1) 197:6
querying (5) 21:5 23:5 138:25 197:12 200:10
question (71) 6:12 8:13 9:24 10:9 19:6 21:24 26:14 28:11 30:12 33:6 34:16 36:12 42:6,7,8,9,19 45:3 53:1,2 62:3,15 62:18 63:1,8 68:16 70:6 83:10 91:24 95:22 104:10 105:16,19 107:16 111:2 112:9 115:8 116:7 121:22 124:10 125:4,8 127:7 130:5,6 131:25 136:5,6
137:19,21 149:16 151:24 163:13,20 164:9 165:9,11,12 165:12 166:11,13 172:7 176:1 196:8 200:9 202:10 204:4 204:5,22 229:2 235:16
questionable (1)
129:10 questioning (1) 28:17 questions (39) 2:9 9:7
9:13,15 10:6 14:11 27:12 28:7 30:24 31:22 33:18 40:4 41:3 44:18 80:17 83:22 124:14 127:4 129:21 131:14,16 139:24 146:15 175:5,8,10 177:3 186:20,23,25 216:2 230:8,19 231:5 233:23 235:3,7 236:24 241:1
quick (1) 201:7 quickly (5) 13:19
70:18 89:20 114:23 218:13
quid (1) 155:11
quite (36) 32:18 36:12 45:17 50:21 61:22 64:20 65:7 71:3 79:19 83:7,10,18 89:23 110:22,23 126:2 127:11 130:23 131:1 145:12,14 147:23 165:18 183:16 188:7 191:3 194:6 194:7,14 200:9 204:4 233:8,14 235:15 238:10 241:6
quiz (1) 194:8 quizzing (1) 157:23 quoted (1) 228:5
R
race (1) 144:1 rail (3) 59:1 76:13
89:19
railway (38) 51:8,20 51:24 52:7,13,17 52:21 53:20 54:1 54:11,16,19,20,24 55:4,6,11,13,17,23 55:25 56:8,14 57:8 57:11,13,21,22 58:5,6,9,23 59:6,8 113:21 114:2,9 118:16
raise (13) 3:3 4:6,8,14 20:8 141:11,17 142:14 171:12,19 208:15 211:22 215:11
raised (13) 14:15 29:7 35:12 43:21 49:4 91:13 92:13 128:16 143:7 151:9 174:15 219:12 236:12
raising (8) 23:24 39:16 132:23 169:6 199:10 211:19 214:14,17
ran (5) 51:9,12 54:20 55:4 61:22
range (2) 122:23,25
rate (4) 11:21 12:5 realms (1) 77:18 224:3
123:9,12 reason (18) 34:13 referable (1) 20:3
rates (10) 109:25 78:2 93:20 108:5 reference (20) 5:17
114:20 117:24 125:20 127:15 12:23 15:24 19:9
122:10,15,23 123:8 133:5 165:25 166:7 23:18,22,23 24:7
199:24 200:22 166:15 174:8 24:18 25:3,9 46:10
201:3 175:11 189:3 47:23 49:12 84:2
ratio (1) 138:21 196:13 208:6 86:16 93:1 127:17
rationale (1) 221:24 215:10 228:17 131:3 139:11
rationalisation (2) 241:21 references (4) 13:23
128:23 129:15 reasonably (1) 187:7 18:4 24:24 77:24
re-examination (4) reasons (4) 65:20 referred (5) 134:24
130:10 131:4 230:7 128:22 224:9,16 141:15 146:16
231:24 reassurance (2) 179:25 222:7
re-examined (2) 154:14 232:15 referring (8) 13:9
106:23 129:20 reassure (2) 155:19 19:25 27:21 55:1,1
re-examining (1) 156:25 136:23 163:11
131:2 recall (11) 22:2,3 45:9 217:21
re-read (2) 231:22,23 50:17 65:7 147:23 refers (1) 128:25
reached (1) 208:14 171:22 177:5 refinance (9) 141:13
reaction (1) 191:22 191:15 198:23 141:20,23 144:14
read (33) 10:5,19 214:18 144:20 145:3,5,9
21:15 24:6 25:2 receipt (2) 16:20 164:7
26:9,12 29:1,14,17 25:20 refinanced (1) 140:21
29:21 30:1,4,11,14 received (10) 8:20 9:5 refinancing (4) 143:15
30:25 32:1 60:1 16:21 17:16 151:4 172:13 207:6
85:5 130:18 146:24 174:2 185:19 209:15
148:5 150:22 199:18 229:10 reflect (1) 71:17
158:22 163:4,9,15 233:3 reflective (1) 187:11
184:6 199:1 218:15 receptive (1) 237:6 refreshed (1) 139:5
233:20 234:21 reckon (1) 114:22 regard (3) 83:18
236:21 reckoned (1) 200:21 202:15 240:8
reader (5) 128:24 reclaim (2) 98:21,22 regarded (3) 199:25
143:13 145:22,23 reclaimed (1) 57:5 200:2,11
148:24 reclamation (1) 59:3 regarding (1) 217:10
reading (7) 13:19 recognise (4) 13:23 regularly (1) 94:10
19:15 31:8 95:13 23:5 51:18 148:7 regulatory (1) 122:6
140:20 143:11 recognised (2) 190:10 reject (1) 84:1
242:5 191:2 rejections (1) 188:10
ready (2) 16:3 103:23 recollection (7) 48:16 related (5) 20:10
real (11) 39:11 43:20 54:20 55:3,13,14 193:14 197:21
54:1 123:8 131:20 192:7 226:8 198:8 199:9
159:13 169:6 recommend (1) relation (15) 2:24 4:25
189:24 190:2 222:12 23:24 37:7,10
227:15,22 reconcile (1) 32:6 40:20 45:7 85:14
realised (1) 170:12 reconciliation (3) 92:7 116:19 129:21
realistic (8) 83:23 159:11,18 177:7 144:19 163:8
86:22 89:7 94:14 reconsider (2) 85:16 173:12 218:17
94:16 126:14 168:7 139:4 relationship (1)
240:14 Reconstruction (1) 174:22
realistically (4) 152:4 210:19 relative (2) 65:6
171:8,8 239:18 reconvene (2) 126:25 147:22
reality (4) 69:18 99:8 127:22 relatively (5) 44:11
122:10 196:18 record (3) 49:19 85:6 77:13 125:18
really (76) 9:20 17:7 126:23 146:10,19
32:22 43:17 45:3 recorded (2) 49:16 relevance (5) 44:15
47:4 49:25 50:7,9 182:20 84:11 87:23 124:15
53:17 61:9,12,14 rectangles (1) 53:17 239:12
62:17 66:7 68:17 rectangular (1) 57:4 relevant (20) 3:14
68:18 71:20,21 red (12) 35:12 41:12 4:21,22 8:10 14:4
77:12 83:19,22 54:23 55:20,22 23:10,14 34:3
84:8 91:6 92:23,23 56:7 57:18,19 39:17,21,24 41:10
107:12,21 129:5,11 106:10 125:15 73:18 108:15
129:12,17 130:18 164:22 187:3 178:22 180:2
130:19 131:22,25 redevelopment (1) 183:18 223:8
135:6 136:22 181:19 224:22 234:19
138:17 144:6,20 redid (1) 189:8 reliability (1) 190:25
145:16 148:5 161:1 reduce (7) 94:19,20 reliable (3) 32:15 64:4
161:2,12 163:18 97:4,13,14 99:17 169:22
165:14 166:13 100:4 reliant (4) 116:12
186:16 197:13 reduced (6) 51:5 154:13 163:18
200:1,4 208:14,14 101:6 102:15 181:2
208:16,17 214:25 123:25 124:17 relied (4) 16:25 64:23
219:23 225:12 126:7 74:3 130:1
227:9 230:5 232:20 reducing (2) 96:3 relinquish (1) 221:15
235:18 236:10,10 189:9 rely (10) 90:5 151:17
236:14,15,22,23 refer (9) 5:22 14:24 177:12,13 190:9,14
237:20 238:21,25 15:1 72:7 95:2 190:20 198:18,19
239:2 240:13 242:4 182:7 210:6 217:1 208:11
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
255
March 2, 2016 Day 20
relying (4) 88:23 150:6 226:2 135:8 141:23 149:9
90:12,20 163:11 respectful (1) 111:8 149:16 151:16
remember (22) 17:16 responses (1) 14:12 153:4,25 154:21
19:15 26:16 46:25 rest (2) 82:14 164:1 157:2,7 158:5
48:20 84:19 137:2 restore (1) 63:21 161:12 163:4 164:4
140:20 147:7 restructuring (1) 165:21 166:4
150:22 174:14 214:11 167:12 170:21
175:23 178:25 result (3) 35:3 125:17 181:1 182:15
179:2 187:1 189:5 235:3 184:25 185:6 186:2
205:15 211:23 retail (1) 70:12 186:5 187:16,20
212:3 218:8 230:22 retained (1) 101:2 188:7,9,21 189:10
239:1 retainer (6) 169:17 195:19 198:6
remind (2) 138:17 173:14,18 174:3 199:14 200:8 202:4
184:18 189:6 206:16 202:20 203:22
reminded (1) 50:24 return (3) 153:8,12 204:2,5 205:18,22
reminding (2) 110:12 154:17 206:7,17 207:7
110:18 returning (1) 241:16 210:13,25 211:25
removed (3) 67:18,20 returns (1) 111:11 212:20 213:3,4
126:7 revalued (1) 19:3 216:22 222:3,15,23
removing (1) 189:9 revealed (1) 169:1 223:3,6 224:19,21
remunerated (1) revenue (23) 44:8 226:11 230:11,15
174:19 50:3,6,11 60:16 230:16 231:9
repaid (2) 156:10 61:4 70:12 96:3 233:11 238:10,15
166:7 97:10 99:18 103:2 239:9 241:6,23
repay (6) 137:3,16 104:24 107:3 right-hand (2) 93:9
142:16 143:2 121:11 166:3,18 106:8
148:18,22 167:17,18 172:4,5 rightly (2) 48:20 49:1
repayment (1) 154:11 187:6 194:15 rights (1) 29:5
repeat (4) 81:9 85:17 197:12 rigorous (3) 158:12
147:14 167:15 reverse (2) 109:14 207:15,18
repeated (1) 239:25 201:23 ring (1) 212:1
replace (2) 108:7 review (8) 193:16 ringfenced (9) 132:14
140:14 196:5,23 232:9 132:23 133:6
replicate (2) 17:22 234:16,25 239:11 134:20 135:24
196:18 240:22 142:1 144:7 164:6
replied (1) 177:2 reviewed (2) 193:15 164:11
reply (1) 225:2 239:9 ringfencing (2) 100:15
replying (1) 27:20 reviewing (2) 38:5 144:16
report (12) 85:25 196:2 ringing (1) 218:8
92:19 115:24 revise (2) 31:20,25 rise (1) 230:13
118:19,22 121:5,20 revisit (2) 86:6 235:7 risk (11) 42:17 145:4
122:8 126:24 revive (1) 205:6 154:6 155:8 159:22
182:14 187:8 191:1 rework (2) 78:5 189:14 193:21
reports (2) 115:24 125:20 199:8 200:22 207:2
121:2 Rhine (1) 115:2 207:25
representation (1) right (179) 6:6 7:25 risks (1) 193:14
53:18 10:14 11:24 12:5 road (11) 51:23 54:19
represented (2) 8:18 12:18 13:10 14:2 55:12,17 57:10,16
27:8 22:19 25:5 26:19 57:18,20 58:22
representing (2) 85:9 29:25 31:11,12 89:19 114:1
142:25 32:18 33:22 34:20 roadshows (1) 173:2
represents (2) 85:15 37:9,13 38:13 Robin (3) 1:8 213:17
203:16 39:13 41:15 42:23 243:3
reputable (3) 39:18 42:23 43:1,17 45:4 rocket (2) 52:24 191:9
160:6 169:1 45:6,12,23 46:5,20 roof (1) 57:19
reputation (3) 159:7 47:17 48:14 49:21 roofed (1) 51:24
159:22 164:2 50:13 52:21 54:23 Rotterdam (2) 93:4
request (6) 124:21 55:24 56:4,15 115:15
125:12 126:8 226:1 57:14,25 58:20,20 roubles (6) 11:21,23
226:24 232:2 59:21 60:21,24 13:12 14:17 25:22
requesting (1) 169:17 61:8,8,17 62:3,4 26:2
require (3) 42:1 159:9 66:10,11,12,23 rough (2) 99:11
162:5 67:5,24 68:5 72:16 146:12
required (5) 114:16 75:3 78:8,11 79:19 roughly (10) 11:23
145:5 206:14,16 79:23 80:1 82:25 45:21 53:11 76:8
240:16 83:4 85:15 86:25 94:16 96:11 103:2
requirement (7) 122:6 90:17 92:9,21 103:7 178:16
135:3 142:7,12 95:18 96:18 97:1 205:13
156:1,6 220:23 100:18 102:6,15 round (15) 18:21
requirements (2) 103:3 104:23,25 19:10 44:8 55:18
193:8 196:4 105:11,21 106:8,9 57:23 61:22,25
research (1) 77:6 106:11 107:15,25 62:1 68:12 69:6
reserve (3) 235:5 108:9 116:8,13,18 70:14 71:3 148:12
236:3,20 116:24 117:10,17 225:23 226:4
resistant (1) 63:16 118:14,24 119:16 route (3) 113:25
resources (3) 149:13 121:16 123:11,21 206:21 214:11
172:16 203:18 124:3 125:22 126:9 routes (2) 206:21
respect (6) 19:1 80:15 126:13 129:17 220:1
109:24 131:21 133:25 134:10 routine (1) 202:10
row (1) 106:15 RPC (1) 233:19
RUB (4) 11:16 137:18 140:14 190:2
rude (1) 153:5
rules (3) 59:25 129:17 131:4
run (13) 46:1 51:11 68:17 70:14 73:4,7 84:13,15 109:13 111:14 114:16 125:11 194:1
rundown (1) 44:14 rung (2) 224:8,15 running (5) 50:21
70:11 100:18 111:3 219:13
runs (1) 74:19 Russia (9) 32:7 62:2
92:20 122:6 157:17 187:22,24 188:8 190:23
Russian (35) 11:21,23 13:20 14:17 21:10 22:6,7,10,16,17,19 22:25 26:2 32:11 33:20 34:3 43:5 52:1 53:6,7 54:21 55:2 60:1 61:24 70:20 76:13 140:16 141:20 150:25 163:4,7,10,15,24 190:1
S
S (2) 70:2,2
S-curve (2) 106:12,14
Sachs (4) 38:17
153:15 155:13 162:9
sacked (1) 190:17 safe (1) 232:1 safeguard (1) 159:6 sake (2) 95:19 230:25 sale (7) 13:3 20:24
21:3,8,13,25
184:13 sat (1) 3:25
satisfactory (1) 237:19 satisfied (1) 237:15 save (6) 140:20
205:12 206:9 207:4 208:15,21
saved (1) 140:19 saving (2) 105:7
205:18 savings (3) 98:15
103:9,11
saw (13) 14:4 22:2 23:16,17 26:13 49:25 50:1 52:23 64:21 82:14,15 181:18 187:2
saying (45) 4:16 14:2 15:11 21:15 32:22 33:5,7 37:6,8 38:13 56:8 61:12 73:4 81:23 83:6 90:12 103:9 105:10,13 107:13,14 112:10 115:9,16,25 121:24 130:6 137:21,22 140:1 145:17 146:19 147:25 157:13 162:3,24 172:3,5 198:14 200:11 206:7 214:19 217:9 228:6
234:9 6:22,25 7:5,7,9,14 seeks (1) 196:18
says (21) 6:21 10:1 7:16,19 8:5 9:9,11 seen (13) 13:19 27:13
11:8 18:16 20:15 9:23 10:3 11:1,4,6 49:23 82:18 148:10
22:16 45:24 48:21 11:19 12:1,3,5,10 149:21 178:24
76:2 80:4 117:11 12:21,23 13:2,3,11 185:9 212:14
130:22 138:18,19 14:24 15:1,6 16:18 214:20 216:25
186:17,19 188:12 17:1,5,21,24 18:1,6 218:10 237:19
193:13 201:11 18:7,13,19 19:20 self-financing (1)
225:5 236:6 20:3,4,12,13,20,23 133:8
scale (1) 57:2 21:17,20,22,23 seller (1) 12:17
scan (1) 238:18 22:8,10,22 24:13 semicircular (3) 56:12
Scandinavia (5) 20:16 24:24 25:9,14,17 57:6 58:4
21:6 23:18 25:10 25:21,22 26:1 28:5 send (2) 193:3 194:14
184:10 28:9,15,22,23 sending (3) 33:14
Scandinavia’ (1) 15:4 29:11 30:23 31:13 213:20,21
scanned (1) 238:22 31:14,14,24 32:2 sense (16) 36:21 68:9
scant (1) 74:5 32:11 33:8 39:8 71:4 77:8,11 98:19
scenario (5) 70:5 42:13 43:11,14 101:8 107:19,20
124:8,12,25 168:15 44:15 45:16,23 131:21 148:21
scenarios (1) 194:15 46:2,9,18 47:8,14 152:1 154:5 191:24
schedule (16) 171:13 48:12,18 51:8,22 213:25 235:15
171:24 223:3 51:22,24 52:2,2,4 sensible (2) 62:12
224:24 225:7,14,25 56:10 57:1,17 58:5 93:21
226:12,13,18 58:22 59:10,15 sensitive (1) 74:2
227:14,23 228:10 61:16,24 63:24 sensitivity (3) 67:14
228:19 229:4,16 64:2,2,6 65:21 67:2 106:19 125:16
science (2) 39:22 69:3,18 72:2 74:7 sent (20) 6:7,18 10:23
52:24 74:12,17,23 75:17 17:14 18:24 45:16
Scott (3) 77:20 90:3 75:20,24 76:2,3,10 168:16 178:4 182:3
199:5 77:24 78:13,16 182:5,11,24 204:20
scratch (1) 44:12 79:13,24 80:4,22 213:16 217:7 224:6
screen (24) 1:10,17,19 80:25 81:15,16,17 226:11,23 229:7
5:23 11:1 28:4 81:22 83:24 84:9 233:19
29:20 30:9 31:4,6 84:10 87:13,23 sentence (6) 88:7
75:10,21 78:19 88:3,7 93:2,5,9,11 149:17 150:1
92:17 101:13 93:14 103:16 165:10 172:21
122:13 123:25 106:12,16 107:10 201:10
178:21 212:22,25 112:15 115:19 Sep (1) 225:15
213:2 224:1,3 117:1,4 118:18 separate (3) 210:20
226:16 119:13 122:18 211:7 226:9
scroll (4) 116:25 119:9 125:18 126:17,19 September (45) 6:14
119:11,12 128:2 131:11 16:6 18:22 19:11
scrolled (1) 1:23 132:14,17 133:4 67:2,19 119:7,8
scruffy (1) 50:20 134:22 135:11 123:24 124:1,5,20
sea (5) 3:10 51:10,11 138:16 139:10 125:11 126:6,17
51:12 113:25 141:14,16 142:12 135:4,9 136:1
sea-change (1) 158:14 142:18,19 144:13 138:11 139:2
searches (1) 238:24 145:7 147:15,19 157:19 158:5 160:6
seaside (1) 89:21 149:3 155:16 173:5 160:7 179:2 189:8
second (35) 7:9 13:1 174:8 175:4,5,21 192:19 194:20
20:22 37:12 73:3 176:15,18,23 195:17 217:17
75:21 78:13 79:13 177:19,20,24 223:19 224:6 225:2
80:20 81:7 82:2 178:10,10,13,15 225:13,24 226:5,9
98:17,18 102:21 179:9,10,12 181:24 226:19 227:3,8
103:25 127:10 182:23 183:2 185:5 228:10,18 229:5,18
138:18 152:19 185:24 186:2 237:12
155:22 171:7 187:25 190:4 191:7 September/October…
172:21 175:19,24 191:20 192:16,19 238:5
184:16 193:5 196:1 193:5,11 196:1,9 sequence (2) 80:1
201:8 203:7,11 198:7,12 199:12 208:3
205:9 217:23 220:7 202:8 203:4,8,11 series (5) 9:15 129:12
220:8 222:3 227:6 203:20 204:9 205:4 131:22 187:21
seconds (3) 72:1 80:6 205:9,14 206:19 216:1
91:9 208:12 210:11 serious (11) 27:5
secretly (1) 122:7 213:12,13,16,17 40:14 42:17 168:17
section (7) 7:21 8:10 216:20 217:5,12,19 168:19,20,22 206:2
20:3 47:2 85:25 217:24 218:2 219:1 215:3 216:10,12
142:9 220:8 219:3,5,15 220:14 seriously (2) 33:21
sections (1) 193:7 220:24 221:20 100:25
sectors (1) 181:24 223:19 224:6,10,23 seriousness (1) 150:8
secure (4) 34:2 43:10 224:25 225:8,10,21 served (2) 76:13
60:10 152:21 226:15 229:7 129:4
secured (1) 11:14 238:19 service (13) 95:6,12
security (12) 4:13 seeing (2) 19:17 70:16 96:14,17 97:8
153:2,7 218:24 seek (3) 35:13 156:25 101:6 107:9,11
219:23,24 220:7,10 222:24 115:20 165:6,16
220:17,19 221:2 seeking (4) 138:3 166:19 189:15
223:15 142:14 161:22 serviceable (1) 136:14
see (262) 1:16,19 5:5 169:23 services (6) 113:13
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
256
March 2, 2016 Day 20
173:13 191:25 sign (4) 150:7 165:20 slip (1) 86:5 Soyuz (1) 225:19 200:19 204:7,15 storing (1) 109:8 101:21 104:17
195:22 202:24 199:24 203:4 slips (1) 175:18 space (12) 51:5 60:25 234:13 237:22 straight (9) 119:17 120:4,4,9,13
203:14 signature (1) 1:24 slow (1) 232:7 61:2,14 65:14 68:6 239:2 120:17,21 121:13 126:12 140:10
servicing (1) 134:5 signed (4) 169:17 slowly (1) 180:16 68:7,20 69:2 72:25 standing (12) 44:6 121:18 122:20,24 149:6 160:9 164:17
set (21) 9:7 19:8 182:10 203:1 small (2) 89:25 102:18 76:20 89:16 45:17,20,22 47:9 123:13,25 166:17 167:21
20:12 21:18,19 204:19 smell (1) 33:22 spanking (1) 181:10 47:13 48:11 49:3 straightforward (2) 168:1,25 169:21,22
25:18 36:9 72:19 significant (9) 46:11 software (1) 89:11 speak (8) 22:25 50:8 76:12 102:4 197:17 201:21 197:21 198:8
74:8 80:1 93:13 47:18 77:13 95:7,9 sold (3) 12:22,23,24 113:23 163:4,7,9 108:13 strategy (2) 199:9 200:12 208:12
117:23 192:24 105:1 195:12,17 solution (1) 235:24 221:11 236:25 stands (1) 129:6 201:12 214:1
203:9 214:2 215:3 222:5 somebody (9) 10:11 240:24 standstill (1) 192:4 strayed (1) 160:23 suggested (7) 14:14
227:14,23 229:11 significantly (3) 87:22 18:22 45:1 82:7 speaking (2) 71:23 star (1) 173:3 stream (3) 99:18 37:12 54:16 112:5
229:16 234:5 89:24 141:6 116:16 138:10 138:1 start (14) 29:2 68:13 187:6 197:12 112:6 191:16 222:1
sets (3) 92:20,25 93:4 signified (1) 202:17 151:21 206:1 speaks (1) 240:6 98:4 103:22,22,24 streams (2) 68:17 suggesting (24) 26:24
setting (2) 88:11 signify (1) 187:23 214:10 special (2) 201:25 154:22 158:11 194:16 27:14 37:14,15
222:18 signs (1) 170:4 somewhat (1) 122:10 202:1 160:20 172:4,5 strength (1) 221:5 43:3 48:13 53:22
seven (2) 26:16 147:5 silly (3) 48:9 70:6 soon (3) 83:18 171:17 specialists (1) 117:2 196:2 222:12 233:9 strides (1) 77:13 72:21 97:11,19
sevens (1) 223:22 109:25 237:20 specific (3) 237:11 start-up (4) 165:22 stripped (1) 67:6 98:2,14 99:13
shade (1) 39:14 similar (4) 18:6 38:4 sooner (1) 239:20 238:4 239:8 166:23 167:16,19 Stroilov (51) 1:3,5,7 102:10 104:19
shades (2) 4:11 55:6 80:22 153:11 sorry (87) 1:18,22 5:3 specifically (1) 60:9 started (8) 44:16 1:13,14 2:8 22:18 119:24 123:20
shape (1) 232:6 simple (4) 53:21 21:2,5,21 22:9 31:2 speculation (1) 46:25 47:14 71:19 63:19 64:6,12 156:16 162:20
share (8) 12:20 13:3 62:24 70:25 106:25 31:7,9 36:12 41:2 196:17 88:21 101:25 79:15,21,22 129:25 193:20 195:25
22:14,21 85:14 simplistic (4) 61:5 44:18 46:3 47:22 speech (1) 198:3 115:12 164:10 131:2,15 184:19 196:11 209:12
86:4 87:12,17 96:19 98:3,13 48:5,9,12 50:24 speed-read (1) 218:13 starting (3) 102:4 229:24 230:16,18 214:1
shared (1) 213:18 simply (8) 124:16 52:5,6 56:22 58:14 speedily (1) 242:8 167:19 233:8 230:24 231:10,13 suggestion (9) 63:17
shares (6) 11:10 12:15 125:4 130:11,13 58:18 61:7 63:19 spent (3) 106:25 state (7) 59:12 65:5 231:18 233:12,16 68:1 139:1 170:19
12:22 20:19 21:14 160:10 233:12 63:22 64:14 79:8 162:9 181:9 69:11 98:7 104:5 234:4,9,16 236:6 191:23 234:14
25:12 237:21 239:3 79:15,21,21 81:25 sphere (1) 188:3 147:17 209:22 237:8,14,16,18 236:4 241:3,7
sharper (1) 33:13 sincerely (1) 36:20 82:1 84:12 86:15 spiel (1) 204:7 stated (2) 16:22 28:12 238:6,8,12,16,21 suggests (1) 166:2
shed (1) 241:20 Singapore (2) 89:1 87:6,9 92:16,17 spilt (1) 71:25 statement (52) 1:16 239:10,13,15,18 suit (2) 100:7 101:8
sheet (20) 4:1 32:6 91:12 101:16 102:22 split (1) 152:18 1:20 2:2,5 5:22 240:12,17 241:2,12 suitable (2) 50:15,16
36:25 37:3,21,25 single (2) 36:24 103:21 107:7,12 spoke (1) 163:15 10:18,20 11:2 241:22,24 242:2 sum (3) 8:3 18:17
43:15 79:14 89:12 111:16 115:8,9,22 126:10 Sponsor (1) 203:18 13:13 14:25 26:5 243:4 33:23
119:11 133:1 sir (20) 5:7 57:15 132:6,7,7,8 133:15 Sponsor’s (1) 203:13 28:12 32:4 59:16 stronger (1) 192:7 Sumitomo (1) 186:17
155:24,25 156:4 58:10 109:2 110:16 133:17 136:6,8 sporadic (1) 63:25 63:13,17 64:16 struck (3) 9:4 172:22 summarise (1) 12:14
158:20 159:12,19 113:6 114:20 142:11,11 151:23 spotted (1) 169:3 66:24 72:7 94:23 222:2 summary (16) 48:21
227:19 228:8 128:10 152:23 152:21 153:5 154:9 spread (3) 112:21,22 111:25 115:14,17 structure (7) 7:18 49:1 66:16 74:9
229:20 153:9,15,25 154:3 157:24 160:25 201:18 126:5 132:11 136:8 18:13 167:8 195:14 101:12,17 106:24
sheets (1) 62:15 154:9 156:2 184:16 163:7,13 164:24 spreadsheet (6) 101:9 136:17 140:22 195:23 197:13,19 117:11 126:19
ship (3) 113:17,18 191:4 201:23 176:12 182:15,16 101:12,15 133:19 146:1,3 147:9,25 structurer (1) 203:24 133:18,21 135:5
118:13 202:19 231:8 182:18 198:2 200:9 183:17 197:4 148:4,17 150:15,19 structures (1) 194:15 183:12 184:1
shipping (3) 61:19 sit (3) 1:9 162:10,15 201:8 202:21 spreadsheets (1) 157:3 158:21 structuring (3) 195:1 222:21,22
123:9 166:24 site (22) 7:18,22 8:12 204:22 206:2 183:12 161:21 169:12 195:22 202:24 summer/autumn (1)
ships (7) 76:7 94:7,10 11:11 18:14 44:16 210:22 213:3,10 spur (3) 52:24 56:21 172:19 179:1,9 struggling (3) 14:7 211:8
113:10,13 167:17 44:19 45:6 50:1,20 219:7 223:20 234:5 76:13 182:12 185:18 176:9 209:14 sums (2) 40:1 42:2
211:19 51:8,16 53:9,12,16 238:10,11 242:8 square (4) 51:2 56:8 188:19 199:19 stuck (3) 127:17,24 Sunday (5) 234:3
short (17) 54:4,8 53:23 54:1 56:25 sort (46) 3:3 9:20 70:12 80:24 210:2 212:5,11 177:10 236:19,19 238:15
63:12 66:20 73:8 76:15 89:9 90:4,7 38:19,21,21 42:25 squared (1) 24:3 217:2 239:5 studied (1) 99:10 238:17
128:9,16 130:13 sits (1) 91:23 43:10 47:2 51:23 St (17) 8:17 11:12 statements (5) 14:21 stuffing (1) 113:19 sunk (4) 149:7 150:7
141:13 142:16 sitting (2) 38:12 56:9 57:1,13 70:13 65:3 70:17 74:1 19:23 21:17 23:17 subject (6) 90:24 151:5 155:8
143:2,16 148:18 239:21 83:20 91:5 99:15 85:10 87:12 113:14 159:10 129:16 207:23 supplemental (1) 63:2
156:9 161:7 183:9 situation (15) 42:25 113:16 117:6 113:22,24 114:19 statistics (3) 88:4,8 225:14 230:18 supplementary (1)
231:15 101:3 109:13 147:6 124:15 128:22 116:1 118:21,21 92:20 238:7 130:24
shortage (1) 120:25 157:25 164:18 129:14 133:8,12 121:1,3 172:24 status (10) 128:17 subjective (1) 161:5 suppliers (1) 133:5
shortfall (1) 29:13 192:3 207:4 219:4 144:22 149:12 stack (3) 89:11 113:17 133:1 182:8,12,21 submission (3) 111:8 supply (1) 111:17
shorthand (2) 71:20 219:6 221:8 223:13 150:18 153:2 156:3 118:13 185:2,10,22 187:7 130:9 131:19 support (2) 11:3
183:4 240:7,11 241:17 161:3,4,12 169:22 stacking (1) 90:9 209:25 submit (3) 80:16 140:10
shortly (3) 125:25 six (10) 17:17 69:20 172:1 173:12 177:6 staff (3) 8:23 163:8 stay (3) 86:7 232:5 105:15 129:9 supported (1) 126:24
126:2 199:18 100:1 106:18 179:22 180:10 182:25 242:9 subsequently (1) suppose (2) 41:1,4
show (10) 19:1,4 109:20 125:19 198:3 200:4 207:18 stage (24) 38:7 46:21 stays (1) 118:17 122:5 supposition (3) 24:10
58:20 114:15 157:24 173:24 208:25 214:14 73:24 77:13 88:23 steel (1) 48:17 subsidiary (1) 23:18 24:20 108:16
118:20 150:3,5 208:23 215:7 219:23 220:13 90:18 103:13 129:6 step (2) 50:7 142:24 substantial (3) 151:25 sure (24) 16:9 22:17
209:20 222:19 sixes (1) 223:22 222:13,16 157:16 172:17 steps (2) 148:16 180:25 197:7 50:21 56:4 57:11
223:10 sixth (1) 81:15 sorts (10) 32:23 39:25 178:23 180:14 192:25 substantially (4) 62:17 71:13 75:19
showed (7) 20:25 size (7) 65:24 71:17 40:1 42:1,2,15 182:11 186:13 Stevedoring (5) 15:3 152:16 196:6,13,24 76:23 83:10 104:14
21:4,9,12 167:21 71:19 72:3 138:20 61:25 109:24 114:5 195:13 196:25 20:16 21:6 23:19 succeed (1) 201:1 106:6 135:19
181:11 184:13 174:13 201:16 160:8 197:5 200:3 202:8 25:11 success (3) 173:14,25 143:19 152:6 191:3
showing (2) 17:18 skeletons (1) 162:16 sought (9) 34:18 204:3 206:15 stick (1) 52:16 174:12 200:9 205:16 213:8
85:25 skeletons’ (1) 159:8 141:22 150:6 207:12 208:1 stipulated (1) 13:15 successful (1) 197:18 213:9 224:21 225:3
shown (25) 1:14 9:6 skin (5) 152:11 154:5 207:25 211:21 226:25 Stividoyna (1) 184:10 suckered (1) 154:16 230:7 232:22
10:17,24 12:8 154:15,19 186:11 218:24 220:8,10 stages (3) 19:6 116:14 Stockholm (1) 113:15 suddenly (3) 38:13 surely (3) 4:19 15:10
14:18 21:11 26:6,7 Sklyarevsky (3) 225:24 211:6 stood (1) 235:18 78:25 162:9 166:5
28:2,21 30:3,7,15 233:13 237:3 242:4 sound (1) 11:24 stand (8) 2:2 12:4 stop (4) 38:23 130:9 suffer (1) 221:22 surmise (1) 49:6
32:2 33:25 36:7 sledgehammer (1) sounds (2) 22:19 32:12 39:9 46:8,9 203:6 204:25 suffered (1) 108:14 surname (1) 177:4
58:17 73:9 138:7 208:25 45:19 125:9 194:18 stopped (1) 162:25 sufficient (6) 65:14 surprise (2) 219:17
179:13,14 185:1 slide (2) 135:20,21 source (3) 10:13 standalone (1) 133:12 stops (2) 57:10 58:22 68:14 166:3,18 235:23
192:15 205:2 slight (2) 72:2,4 131:17 234:20 standard (13) 72:13 storage (7) 66:5 73:6 220:21 221:4 surprised (4) 27:10
side (9) 25:21 51:9,25 slightly (5) 54:13 sources (3) 129:1,2 187:13 189:12 76:12 90:8,10 94:6 suggest (31) 35:1 39:4 138:24 219:12,20
54:20 55:4,14 93:9 138:24 141:25 222:17 190:23 195:7 181:11 40:17 43:18 54:18 survey (2) 198:24
185:25 232:1 208:24 212:5 South (1) 187:13 198:25 199:13 storey (1) 50:25 78:1,6 83:19 89:5 209:7
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
257
March 2, 2016 Day 20
survived (2) 134:18
134:18 suspect (8) 27:16
69:25 70:3,17 131:5 161:23 163:23 185:13
suspected (1) 95:22 sustain (1) 140:15 sustainable (2) 108:7
111:6
sustaining (1) 100:13 Sutcliffe (11) 88:24 91:4 112:5,11
116:3,13,19 117:15 119:19 123:19 126:13
Sutcliffe’s (4) 78:10 90:13 117:11 168:11
SV-15 (5) 13:24 68:12 69:7 98:4 102:4 SV-16 (6) 13:25 48:19 52:1 68:13 69:8
98:8
SV-17 (4) 57:12,21 58:22,23
sworn (3) 1:7,8 243:3 sympathetic (1) 240:4 sympathy (3) 239:23
240:4,13 syndicate (4) 140:3,5
170:2 195:7 syndicated (2) 201:24
202:13 syndication (7) 195:9
201:4,17,20 202:1 202:7,18
system (2) 32:2 181:12
systems (1) 89:14
T
tab (14) 75:13 79:2,3 79:5 85:3,4 87:6 92:16 101:17 119:12 142:9 175:4 175:20 176:13
table (6) 25:17 78:2 92:25 122:18 170:7 178:11
tabs (2) 106:7 178:1 tabular (1) 62:24 take (65) 3:23 4:3
16:20 19:6 20:6 27:23 31:3 34:10 34:21 44:21 64:8 67:4 69:9,14 77:18 82:17 98:2 102:20 104:5,12 109:4,5 110:24 111:7 112:11 113:3,4,8 113:14 114:12 116:5,22 126:14 130:11,23 132:2,6 135:7 148:16 177:8 182:1,10 190:12 194:7,8,10 196:25 200:14 202:5,18 206:14 212:14 220:8 221:1 222:11 226:2 229:25 230:8 230:10,20 231:2,24 235:1 236:2,22
taken (25) 13:14 17:23 30:21 51:16 71:6,7 78:4 79:12 83:2 86:2 107:22 114:16 120:14
123:3 134:5,13 31:21 34:23 35:17 64:13,14,14 71:24 194:24 201:8 140:11 147:11,16 transcribers (1) 183:3
135:22,25 144:25 37:7 41:17 43:2,20 110:16 115:7 119:5 202:19,23 203:1,5 162:9 164:20 transcript (10) 1:17
148:22 152:7 44:2,4 45:15,25 120:14 132:6 205:3,22 206:4 169:20 170:25 27:25 30:3,8,15
167:22 189:16 46:12 47:3,19 133:20 150:17 207:21 211:20,21 173:8,16 180:18 33:25 163:6 231:22
200:12 235:22 49:17,23 50:4,13 171:11 175:13 211:23 213:5 183:2 194:24 231:23 232:9
takes (2) 61:19 73:22 50:21 51:16 52:11 178:3 179:3 183:7 214:18 215:8 216:5 201:23 202:18 transferred (1) 216:20
talk (3) 77:15 172:9 52:19,22,25 53:8 183:15,19 184:25 217:1,2,2,21 206:3 207:18,25 transgressed (1)
199:21 53:12 55:7 56:16 222:23 229:23 218:16 219:24,25 211:22 214:8 215:5 184:22
talked (2) 34:17 56:23 57:9 59:7,8 Thanks (1) 225:7 221:22 224:1 225:2 216:10 218:10 transgressing (1)
184:17 59:21 60:12,16,19 THC (4) 118:11 119:18 225:11 226:8,10,11 220:2 225:23 228:2 183:23
talking (30) 5:24 6:4 60:22,24 61:2,18 121:2,5 226:12,12,13 231:4 233:9,13 transhipment (24)
51:20 67:10 77:20 64:25 65:5,5,15,15 THCs (1) 168:10 227:17,21 228:17 235:22 236:1 239:2 64:22 65:9,18
91:25 92:2 94:2 66:25 67:21 69:8 theme (1) 159:15 229:2,24 230:6 240:19 241:15 66:10 69:11 94:3,4
122:19 124:22 69:18 70:14,15 thereabouts (2) 104:3 231:20,21 232:2,8 242:1 94:5,8,12 112:12
133:4 139:8,16,18 71:1,11 73:6,12 194:21 233:17,22 234:9 times (4) 44:20 112:17,20 113:1,8
140:6,6,9 155:1 74:9,21 75:20 79:6 thin (2) 57:25 73:23 236:8 239:3,19 109:20 205:24 114:22,24 115:10
157:20 161:1,3,5 79:17 84:16 86:12 thing (13) 20:25 56:10 240:19 241:3,3 226:8 115:12,16 119:23
161:10 168:13 89:20,21,21,22,23 57:19 127:10 thinking (2) 140:1 timetable (1) 237:2 120:2,19 127:15
171:25 172:8,9 90:2 91:14,18 92:6 155:20 157:10 227:20 timing (1) 233:4 transient (1) 64:22
189:12,20 211:18 92:7,8 94:3,8,15 161:4 184:19 third (11) 74:12 81:12 title (1) 151:22 transitional (1) 68:10
tangent (1) 210:25 98:10,25 99:7 190:15 200:1 98:16,20,22 124:9 today (25) 23:21 26:6 translated (4) 163:24
tank (3) 45:14 48:17 103:23 113:4,5 208:25 212:21 127:25 171:6,7 26:7,22 27:4 34:1 164:3 236:21 240:6
50:4 117:23 118:12 214:9 199:23 206:20 36:7 67:5 80:16 translation (10) 12:9
tariff (1) 122:6 119:2 120:6,11 things (19) 9:17 14:9 thirdly (1) 156:13 99:11 128:18 148:7 21:11 22:13 27:17
tariffs (4) 61:25 70:21 132:24 137:12,25 16:5 40:11 50:3 thought (26) 8:10 163:3 175:22 163:12,21,23 190:5
126:8 189:9 139:2 140:24 51:4 66:21 78:10 46:6 48:8 55:16 178:25 198:5 228:4 190:5,7
tarmacked (1) 181:11 141:21 142:8,15,17 96:6 114:6,18 60:4 66:7,14 87:16 230:2,15 234:10 transparency (1)
task (2) 239:20,21 143:2,3,18,25 127:1 170:25 107:3 116:3,8 235:4 236:13,21 215:15
taster (2) 144:22,23 144:19,20 145:6,15 195:25 203:2 230:1 119:21,24 125:8,21 237:18 242:5 transparently (1)
tax (6) 107:17 110:2,5 145:24 146:8,9,13 232:7 236:9 237:3 132:16 141:8 told (36) 10:10 22:16 222:19
110:8,14 221:22 147:17,17 148:2,19 think (221) 4:11,23 146:19 148:1 30:18,20 31:13,16 transpired (1) 121:20
team (5) 82:14 154:24 148:23 150:14 5:10,14,21 6:12 9:2 157:20 180:11 32:11 36:4 40:6 transport (2) 114:1,3
163:14 229:25 151:6 163:9 164:6 9:7,9,14 12:21 14:7 186:7 209:18,23 41:6 86:18 89:10 transshipped (1)
240:22 164:14 169:7,15,23 14:20,24 16:21 215:1 219:22 120:1 123:22 143:6 115:1
technical (4) 79:16 170:18 172:13 18:4,5 19:10,23 thousand (1) 93:10 143:13 144:6,10 transshipping (1)
197:24 198:11 175:3 181:20 182:6 20:18 22:7,11 thousands (1) 25:22 145:8 147:1 148:25 113:23
199:2 184:7,8 188:18 24:23 26:9,13,14 thread (2) 129:13 149:11 151:5 travelling (1) 172:25
techniques (1) 89:17 190:2 192:6 204:18 26:15 28:11 29:23 131:23 152:14,15 154:1 tread (1) 160:13
technology (1) 77:21 205:7 206:9 207:14 32:1,4,22,25 33:10 three (28) 26:17 69:4 156:7,9,13 157:10 treated (1) 130:14
telephone (2) 170:6 210:16 211:13,24 34:14 35:4 41:13 74:15 75:2,25 76:6 170:13 203:6 trial (5) 1:16,21 2:3
233:1 212:7 214:13,17,24 41:13 42:19 44:7 76:21 85:23 96:24 204:25 208:21 11:4 129:23
tell (15) 35:6 95:15 220:20 221:3,4,13 44:24 45:21 47:14 96:25 109:10 230:19 238:3 tried (3) 23:4 80:1
99:9,15 146:23,25 221:16 223:4 48:3,8,10,13,19 167:17 175:14 tomorrow (11) 230:12 121:8
150:1 154:8 158:17 terminals (12) 44:12 49:11,15,18,20,21 184:8,15 193:25 230:23 231:25 trip (1) 40:12
180:2 196:15,16 65:2 69:21 74:1 50:11 51:1,13 54:1 195:10 200:16 232:5 233:9 234:25 tripped (1) 125:1
197:6 238:2 240:10 89:13 90:23 93:2,7 54:13,15,23,25 208:22 210:20 236:5,8,18 241:9 trouble (4) 27:11 78:5
tell-tale (1) 170:4 114:24 115:16,25 55:5,17,19 56:3,24 211:7,10,11,20 242:9 165:20 221:23
telling (15) 7:21 13:21 118:23 61:5,9,11,17 62:15 218:18,22 226:8,9 tonnes (2) 65:17 76:9 trucks (2) 51:22 58:3
40:15 84:21 104:23 terms (12) 50:11 74:9 62:22 63:1,19 throughput (16) 62:11 top (21) 17:17 18:8 true (13) 2:5,7 27:1
124:11 145:19,22 76:20 77:14 86:3 65:13 66:17,23,24 68:22 69:5 71:10 22:10,13 46:4 33:16 34:21 111:10
145:23 149:5,17 94:22 99:11 109:6 71:14 72:21 73:14 73:25 76:20 87:19 48:11 54:23 55:18 123:8,9 129:3
155:4,6 164:24 128:25 131:17 74:8 75:17 79:5,12 89:15 97:2 102:9 55:19,22 57:2 70:3 160:10 181:6
195:17 141:4 161:14 84:22 86:16,18 103:5,17 104:2 78:14 91:23 92:25 187:25 190:18
template (1) 193:3 terribly (3) 79:15 88:6 91:8 92:9,25 105:9,24 106:19 102:5 156:15,15 trust (3) 157:5,6
ten (1) 110:1 225:1 230:4 94:1,1,23 95:16 Thursday (2) 242:4,12 178:11 185:5 183:11
tend (3) 41:18,20 94:5 test (4) 129:5 131:1 96:25 97:11 98:3 ticket (2) 202:4,5 225:10 truth (1) 152:3
tends (2) 71:3 215:3 185:21 207:3 101:21 103:6 tie-up (1) 117:6 top-dollar (1) 32:16 truthful (1) 85:12
term (19) 37:21 64:23 testing (1) 104:4 104:23 105:14,18 timber (24) 44:8 topic (3) 43:25 126:21 try (14) 42:8 78:5
66:20 111:18 TEU (23) 66:2,5 71:20 110:11,17 116:3 50:16 61:22,25 140:23 105:18 124:13
141:13 142:15,16 72:1 77:17 80:13 121:8,14 124:13,24 62:1 64:21,21 65:8 topline (1) 102:13 127:4 137:11 158:4
143:2,16 148:19 81:10,16 82:5 127:19 128:20 65:9,12,17 66:8,14 torpedo (1) 98:21 160:19 166:14
152:20 153:14 83:14 86:12,24,24 130:8 131:2,15 68:6,8,12 69:7 torpedoing (1) 220:4 220:1 229:3 230:25
155:24,25 156:4,9 88:1 104:2,12 133:10,22 136:22 70:14,19 71:3 85:2 total (5) 41:5 51:1 236:17 237:4
158:19 161:7 112:2 113:11 137:6 138:10,25 87:8 92:4 147:24 102:5 149:11 trying (27) 3:3 4:23
199:10 115:21,22 118:21 140:17,19 146:1,4 time (79) 11:9 13:18 211:21 23:1 41:17 46:18
term-sheet (1) 193:16 126:13,17 147:14 149:24 15:21 16:6,21 totally (4) 84:1 107:7 47:2 112:13 127:8
terminal (202) 2:13,24 TEUs (27) 69:15 71:14 150:23 153:11 26:18,23 30:9 121:4 219:19 141:11 150:3 157:4
3:3,21 5:16 7:4 8:8 71:21 72:8,20 154:4 156:21 33:10 37:22 40:8 touch (1) 198:5 157:21 158:3 162:7
8:12,25 9:13 10:2 74:22 75:5 76:25 157:18 162:18 40:23 41:6,11 touted (1) 139:21 174:12 189:5 198:4
10:11,25 11:5,11 78:4,16 84:14 85:8 163:3,3 168:19,21 43:14,21 45:5 54:3 trace (1) 192:13 204:11,11 205:6
11:12,13,15 12:2 85:13 86:2,18 169:8 170:11,19,24 57:1 61:6,19 63:9 track (3) 54:24 55:4 207:3 209:11 215:2
12:10,16,16,21 87:11 88:8,9,13 170:25 173:17,19 65:4 66:15,18 127:7 215:11,14 219:23
13:16 17:3 20:8,10 89:6,6 93:17,22 174:14 176:21 68:18 87:20 90:13 tracks (2) 51:25 52:21 219:25
20:11,22,23 21:6,8 94:14 99:4,15 178:10,13,19,23 90:25 91:20 94:11 trading (2) 134:3,11 tunnel (1) 59:2
21:22 22:15,16,22 107:2 179:1,15 180:8 101:24 102:20 traffic (3) 70:16 77:12 turn (6) 9:8,9 56:5
23:3,4,6,11,19,23 text (2) 80:23 213:15 181:9 182:12,15 112:7 116:11 121:3 77:17 79:13 122:12,13
23:24 24:7,8,13,18 thank (31) 1:12 2:8 184:12 185:8,9,9 121:6 122:4,7 train (1) 53:7 turned (1) 23:16
24:24 25:5,14,15 5:8 8:18 25:9 31:7 188:13,16 189:7,20 126:1 131:25 132:6 trains (1) 94:11 turnover (40) 60:12
25:25 27:2 30:20 53:4,19 54:6 58:12 189:23 190:5,16 137:5,24 139:1 trans (1) 113:6 60:15 61:14,15
Opus 2 International transcripts@opus2.com
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258
March 2, 2016 Day 20
62:4,9 65:8 67:7,20 72:20 75:5 83:23 89:8 91:5 92:2 93:22 95:2,18,25 96:7 99:4,13 100:11 102:5 103:4 109:17,23 112:1 147:24 168:2 175:1 176:2,4,17,21 177:22 178:8,13 180:7,18
turns (3) 22:22 99:14 107:2
twice (1) 42:20 twin (1) 58:5
two (48) 13:25 22:2 26:17 38:22 44:11 50:25 53:17 66:25 68:17 69:6 70:11 72:1 77:10,19 78:14 80:6,9,25 81:11,15 83:3,14 83:15 89:3,12 90:10 94:2 96:21 96:24 100:1,18 109:10 126:3 133:4 134:17 138:25 140:7 153:18 155:18 161:17 167:1,23 168:13 183:13 210:8,25 219:13 220:11
two-thirds (1) 73:5 type (1) 39:18 typed (5) 82:17 84:8
84:21 86:1 131:22 typed-up (1) 129:12 types (1) 94:3 typical (1) 169:1 typing (2) 82:10 83:21 typo (9) 80:12,14 81:9
81:18,19,23,23 82:7 83:6
typographical (10)
81:10 83:8,12 84:22 85:12,20,24 86:8,10,20
U
U (1) 57:11
U-loop (1) 51:25 UK (1) 192:8 ultimately (4) 64:18
65:11 166:6 193:10 unattractive (1)
152:10 uncertainty (1) 42:3 unclear (2) 163:13
237:10
uncomfortable (1)
43:13 undercut (1) 123:8 undergrowth (1)
161:24
underlay (1) 14:3 underlying (5) 15:16
15:25 23:13 155:20 156:25
undermine (2) 41:18 41:20
underpinning (1)
131:9 underpinnings (1)
130:25 understand (40)
10:15,15,23 16:14 23:13 32:1 36:12 41:25 60:11 61:17
72:5 90:21 104:22 105:17 108:2 112:16 121:11,12 128:10,24 129:5 130:7 131:1 132:4 151:23 153:19 167:10 170:4 175:15 183:22 185:14,18 190:16 196:14 202:12 207:9 215:23 221:24 229:11,15
understanding (15)
14:1 35:8 48:16 53:5 59:20,25 60:2 67:19 73:21 95:8 114:22 130:13 137:23 149:20 186:22
understands (3) 230:1
232:22,25
understatement (1)
227:25
understood (18)
47:19 53:11 61:12 63:14,16 65:8 66:6 122:9 126:5 141:10 141:21 146:6 153:21 154:2 192:2 195:16 215:17 233:3
undertake (1) 159:5 undertaken (8) 98:15 180:24 181:5
189:25 197:22 198:9,15 200:13
underway (2) 47:12
47:13
Underwriting/arran…
201:11
unencumbered (2)
216:24 223:14 unfortunate (1)
161:21 unfortunately (1)
59:25
Union (1) 118:22 unit (12) 72:11,13 112:5,6 116:4 118:2 120:11
121:11,19 123:1 124:2 125:22
units (7) 66:2 71:15 95:19 96:4,6 97:20 100:11
unknown (1) 165:7 unloaded (2) 50:18
114:11 unloading (1) 68:11 unprepared (1)
190:14 unravel (1) 130:21
unrealistic (2) 159:24 168:2
unrealistically (1)
125:22
unreliable (3) 85:22
117:15 228:5
unsatisfactory (1)
237:23 untoward (4) 199:1
200:19,23 202:8 untrue (5) 151:7
156:11,12,16 160:2 untruth (1) 161:13 untruths (5) 156:17
160:8 161:6 162:2 162:19
unusual (4) 62:8
136:2 220:12 231:18
unwise (1) 232:8 up-to-date (1) 14:8 update (1) 233:17 updated (7) 6:10 88:15 182:24
224:24 225:7,18,24 upgrade (3) 68:13
77:23 142:15 uplift (1) 120:20 upside (2) 154:6
208:13 upwards (1) 212:2 urgent (1) 239:21 US$150 (1) 211:25 US$18 (1) 207:5
US$300 (3) 99:2 100:9 103:15
US$500 (2) 211:22 212:2
use (23) 3:11 5:14 68:20 98:21 108:18 114:20 119:24 121:21 128:7 143:18 144:8,14,20 153:2 163:1 170:5 184:20 186:10 191:3 218:25 220:4 220:12 221:20
useful (1) 15:21 uses (1) 222:5
usual (3) 131:4 194:14 196:4
usually (1) 152:12 utterly (5) 84:1 107:7
121:4 200:19 214:4
V
vacations (1) 239:19 Valencia (1) 93:5 valid (3) 13:22 227:15
228:2 valuable (1) 67:21
valuation (14) 16:22 27:19,21 32:11 39:15 43:13 152:24 162:6 189:24 190:9 190:14,21 191:11 191:15
value (33) 3:8,9 7:18 7:22 8:11,16 18:14 25:19 41:17,18,21 42:9 43:15 49:24 49:25 50:1 62:2 99:18 108:1,3,11 109:19,19 111:4 121:10 131:20 151:1,14 153:7,24 191:18 192:6 209:23
valued (2) 190:1,25 valuer (4) 190:1,10 191:2 192:5
valuers (1) 41:21 values (1) 25:17 valuing (2) 42:13
110:12 variables (1) 69:24 variety (1) 160:13 various (15) 29:5
30:18 34:3 44:9 59:12,18 79:10 93:13 98:15 101:21 101:22 126:21 179:19 199:15 200:5
variously (1) 127:13
vary (1) 127:14 verbatim (1) 184:6 verification (2) 60:8
181:4 verified (2) 129:3
194:4
verify (2) 18:23 159:3 version (37) 5:21 6:3 6:7,9,17 16:18 17:4
17:10,18,21 18:7 22:10,20 46:19 47:1 49:9 73:11 74:25 75:11,12,18 75:19 76:16,16 77:3,5 78:13 124:5 176:20 177:17 178:4 179:4,6 185:2,8,17 226:18
versions (3) 80:9 175:14 185:12 versus (1) 161:7 vessel (1) 113:12
viability (11) 31:21 43:6,6 60:18 68:20 95:17 104:4 107:5 109:7 136:11 137:12
viable (7) 100:10,12 100:16 107:18,20 108:10 110:20
vibes (1) 170:8 videolink (4) 63:19,23
230:3 237:1 view (13) 19:17
112:19 124:15 130:16 151:12 157:12 182:5 194:17 196:12 208:18 219:4,6 220:11
viewed (3) 130:24 216:8,19
viewpoint (1) 192:2 views (1) 78:10 vindicate (1) 121:24 vindicated (1) 121:4 visit (1) 44:19
visits (2) 45:6 181:9 Vitaly (36) 32:11
61:21 64:18,20 65:4,9,11,16,18 82:13 88:19 141:5 141:10,17 146:6 147:16 150:24 162:7 169:14 171:22 172:22 174:22 180:12 181:6 182:24 186:12 191:17 192:10 203:3 204:19,19 207:23 208:5 217:10 219:25 221:14
volition (2) 67:8 162:8 volume (3) 72:14
89:15 115:20 volumes (1) 65:16 vouching (1) 145:16
Vozrozhdenie (1)
11:14
Vyborg (15) 11:10,15 25:15 139:15,21 140:2 155:23 156:1 167:16 198:25 210:24 211:17 212:9 218:23 219:13
W
wagon (2) 114:2
118:16 wait (5) 113:17
137:19 142:16 156:15 230:13 waiting (4) 94:7,11 113:20 114:6
waiver (1) 238:8 walk (1) 156:21 want (62) 10:5,19
23:12 30:25 31:19 31:23,24 33:15,17 35:1 36:1 40:1,2 41:2 45:3 58:15 69:17 71:9 85:15 86:6,7 92:4 106:22 114:10 122:17 127:12 129:19 136:9 139:4 143:16 143:20,24 144:1 145:20 146:2 151:10 153:20 154:22 155:16 158:21 160:10,12 174:25 185:20 189:13 192:12,13 193:20,25 194:3,13 198:14 212:13 215:16 223:2 226:2 230:25 233:23,24 238:1 241:13,14
wanted (21) 39:5 61:10,11 65:9 112:16 132:9 179:21 186:10 190:9,19,20 192:3 196:19 197:19 199:2,4 200:20 201:1,15 214:9 223:4
wanting (2) 77:7 197:13
wants (2) 36:13 160:14
warm (3) 170:5,9,11 warmth (1) 170:14 warned (2) 232:5
233:4
warning (1) 232:15 warnings (1) 240:1 wasn’t (63) 2:21 14:6 21:8 32:14,15,18 42:6 44:14 46:24 53:1,2,22,22,23
55:1 56:19,23 68:2 68:16,16 77:1 86:5 98:13 121:25 123:1 124:10 135:10,15 135:21 137:1,5,9 139:10 140:12 142:2 143:13 149:15 157:24 158:14,15 160:24 165:9,13 181:13 186:12 192:22 198:2 202:24 203:1 204:4,4 207:10 208:17 209:16 221:10 224:21 228:15,22 230:3,3 233:8 235:9 242:3
watch (1) 173:4 watched (1) 34:5 water (1) 1:10 watertight (1) 160:24 way (37) 10:6 13:16
33:22 73:5,7 78:8
82:6 100:10 103:20 106:25 113:25 119:13 127:19 129:5 130:16 131:3 131:5 163:2 180:10 186:9 189:3,4 191:12 194:11 197:14 200:13 203:2,15 221:25 222:18 232:22 233:1,6,24 235:21 237:3,19
ways (5) 23:1 83:24 97:13,17 237:1 we’re (2) 194:6 212:4
we’ve (2) 142:2 168:21
web (1) 114:16 website (1) 116:22 Wednesday (1) 1:1 wee (1) 58:8 week (6) 182:24
202:3,5,6 217:6 236:13
week’s (1) 90:8 weeks (7) 28:18 34:6
81:11 83:14 194:20 215:7 222:11
weeks’ (2) 83:15 90:10
weight (4) 76:9 131:8 132:3 191:19
Welcome (1) 64:11 well-connected (1)
172:23 well-regarded (1)
172:23
went (7) 6:10,13 24:1 40:9 45:10 112:6 159:20
weren’t (25) 15:8 40:15 51:10 83:19 83:22 88:11 90:25 101:24,25 170:1 186:15,23 187:24 197:12 198:16,21 200:25 209:14 211:9,11 213:24 226:23 229:8,13,18
west (20) 20:22 21:6 21:8,22 22:16,17 22:22,24 23:2,4,6 23:11,19,23 24:7 24:13,24 25:25 53:15 58:3
western (168) 2:13,24 3:3,20 5:15 7:2,4 8:3,8,12,24 9:13,25 10:2,11,25 11:5,11 11:12,13,15 12:2,9 12:16,20 13:16 17:3 18:17 20:8,10 20:11,22 22:23 23:3,11,23 24:7,18 25:5,14,15 27:2 30:20 31:21 34:23 35:17 37:7 41:17 43:2,20 44:2,4 45:15,25 47:3,19 49:17,23 50:4,21 51:16 52:11,19,22 53:8,12 56:16,23 57:9 59:7,8,14,21 60:12,16,19,24 61:2 65:5,15 66:25 71:11 73:12 74:4,9 74:14 75:20,23 76:5 79:6,17 85:7 91:14 92:8 94:15
98:25 117:23 119:2 120:6,11 132:24 137:12,25 139:2,15 140:24 141:12,21 142:8 143:3,25 144:19,20 145:6,24 146:7,8,13 147:17 148:1 150:14,24 151:1,6 163:9 164:6,14 169:7,15 169:23 172:13 175:3 181:20 182:6 184:5,7,8,8,9,14 188:18 189:25 190:19,20,21 192:6 204:18 205:7,12 206:9 207:14 208:19 209:24 210:16,23 211:13 211:24 212:7,12 214:13,17 217:16 220:3,20 221:3,13 221:16 223:4
westwards (1) 57:4 what-if (3) 124:8,12
124:25 wheels (1) 43:12
whilst (7) 68:12 69:7 100:24 129:18 181:16 215:1 234:10
white (5) 54:25 55:1,2 56:10 57:6
wholeheartedly (1)
126:15
Wilson (3) 77:20 90:3 199:5
wind (1) 214:14 winning (1) 61:18 wish (2) 233:9 242:1 wishing (1) 40:6 withdrawn (1) 41:14 witness (53) 1:7,15,20
2:2 5:22 10:18,20 11:2 13:13 14:24 26:5 28:12 32:4 59:15 63:13,17 64:16 66:24 72:6 82:4 94:23 115:14 126:5 128:18,23 129:18 130:2 132:11 136:8,17 140:22 146:1,2 157:3 158:21 169:12 179:1 182:12 183:1 185:18 188:19 199:19 210:2 212:5 212:11 217:2 230:14 231:20 232:16 234:18 235:12,18 241:21
witness’s (1) 230:25 witnesses (1) 183:14 wonder (12) 10:17 27:25 28:1 30:10 30:15,24 146:11
152:18 153:4 180:9 183:2 232:10
wondered (1) 202:14 woodwork (1) 237:6 word (5) 22:25 49:13 49:13 152:19 163:1
worded (1) 148:21 words (17) 11:22 26:2
34:24 35:18 37:17 41:19 60:16 86:5 89:6 131:12 158:25 197:8 198:18
Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900
259
March 2, 2016 Day 20
207:17 210:16 214:13 221:3
work (43) 2:16 14:22 15:21 34:23 38:23 40:3,12 46:21,22 46:24 47:8,11,11 49:22 77:17 102:3 102:13 106:1 118:4 136:24 151:19 155:16 171:14,20 173:3,16 190:16 192:10 200:17 201:2,25 202:2 203:6 209:2,4,9 210:9,15 211:2 215:24 222:13 223:4 239:16
worked (10) 59:22 74:4 93:14 94:19 95:21 118:1 180:12 181:12 203:2 221:19
working (10) 34:17 62:5,10,12 77:14 157:14 163:8,14 204:25 211:7
works (13) 46:11,14 47:17,18 48:14 49:16,25 141:5,12 180:24 181:4 195:13,18
world (8) 4:4 89:17 104:7 111:16 155:9 158:5 173:2 200:18
worried (6) 186:15,23 200:25,25 202:9 215:18
worry (2) 162:21 172:18
worse (1) 168:8 Worst (1) 168:15 worth (5) 4:2 16:22
40:2 83:16 209:9 would-be (1) 155:19 wouldn’t (51) 3:13 4:4 4:10,21,22 10:7
24:16 40:1 50:7,9 52:24 59:3 61:4,6 82:4 83:15 86:11 90:5 97:5 128:7 144:16 145:11 151:17,19 157:11 162:2,12 164:10,11 166:8 168:11 170:1 170:17 171:12 179:6 186:14 193:23 194:4 204:3 205:20 206:3 209:16 214:25 215:10,12,15 219:18 221:13 223:9,11 235:1
write (1) 194:23 writers (1) 183:4 writing (8) 14:12
27:12 32:20 52:1 53:6,7 54:21 55:3
written (3) 204:13 227:18 229:20
wrong (16) 22:18 35:9 80:14 84:8 85:21 86:15 120:4 123:22 127:19 150:19 154:7 156:23 185:7 202:19 205:23 206:1
wrote (4) 82:7 147:4,5 147:25
X
X (2) 4:1,3
Y
year (44) 4:7,9 8:9 15:4 19:24 62:11 65:17 66:3 68:15 69:22 72:22 86:12 88:1 93:11,17,22 95:19,23 97:20 99:5,15 100:12 101:1,25 102:16 103:6 105:3,12 107:4,14 108:15 109:10 133:25 135:25 168:3 179:10 205:18,21 206:10 207:5 208:16,21 237:12 238:5
year’s (1) 109:22 year-on-year (1)
102:12
years (30) 3:25 4:1 26:16 37:1 69:4,6,9 69:12,14,15,20 70:7 84:5 90:22 110:1,2 134:17 136:7 147:5 148:3 157:24 165:23 167:1,23,23 168:13 168:14 170:3 171:4 218:11
yellow (1) 58:24 yesterday (3) 234:4
238:19 242:3
Z
Zapadny (4) 12:16
22:15,17 23:4
0
0.1 (1) 85:10
069,600 (1) 26:1
1
1 (21) 11:16 13:7,12 14:17 73:13 79:9 79:11,14 80:3,9 88:3,9 174:14 176:1,2 177:19 205:11 208:2 218:23 243:3,4
1,000 (2) 88:9 112:22
1,200 (1) 77:17
1,600 (2) 77:17,21
1.069 (1) 26:2
1.08 (1) 128:12
1.3 (1) 13:1
1.4 (1) 203:8
1.6 (1) 72:1
1.8 (1) 134:3
10 (21) 5:18 52:20 75:14 117:23 142:9 142:11 146:4,22,24 147:10 177:18 178:2 180:19 185:5 185:10 186:4 187:9 230:8,9,13 231:2
10-minute (1) 229:24
10.0 (4) 1:2 233:8,10 241:25
10.30 (5) 233:12 242:1,7,9,11
10.9.08 (1) 186:18
100 (12) 12:22 80:24 102:25,25 143:25
153:25,25 184:11 20,000 (1) 173:19
187:11 208:4 200 (7) 74:16 76:7
227:18 228:6 94:20 143:24 145:4
100-and-what-millio… 145:23 164:15
102:24 2002 (1) 57:1
100,000 (1) 200:24 2005 (1) 180:23
101 (1) 102:16 2007 (27) 7:2,11 8:3
11 (5) 17:2 28:1,5 9:3 11:10,22 12:2
135:18 142:11 12:11 15:4 18:9,17
11.18 (1) 54:7 19:24 20:16 45:25
11.29 (1) 54:9 54:18 69:19 142:17
11.849 (1) 134:8 143:3 145:15 146:7
110 (7) 124:2,17 148:19 176:4,21
126:17 127:13 177:23 178:22
168:10,10,11 179:10 195:5
1101 (1) 226:14 2008 (75) 5:19 6:8,10
12 (7) 9:23 135:10 6:14 9:10 17:4
140:18 175:24 18:22 19:11 40:16
180:22 192:19 45:11 47:10,20
203:5 70:17 75:12 80:4
12,000 (1) 113:11 98:5 101:19,25
120 (10) 112:6 115:23 102:13 123:3 124:1
116:4 119:20 124:5 125:11
120:11 123:21 133:22 134:1 135:4
124:2 126:13,17 135:9,10 136:1
168:12 138:11 139:2
13 (4) 9:10 30:22 147:12 157:16,19
51:14 172:19 157:25 158:5 160:7
13,000 (1) 113:11 164:20 172:16
140 (10) 142:21 149:2 173:16,17 178:5
149:8,14,19 151:5 181:22 182:1 185:5
155:6,14 156:14 185:10 186:4 187:9
161:9 189:8 192:19
15 (7) 12:10 52:20 194:20 195:17
70:4 157:19 158:5 205:4 210:5,13
160:6,7 211:8 213:4 217:6
150 (5) 94:20 95:24 217:25 218:6 221:2
96:11 107:4 211:24 223:19 224:6 225:2
154 (3) 102:16 103:3 225:13,16,24 226:5
103:4 226:19 227:3,8
16 (1) 113:9 228:10,18 229:5,18
160 (7) 29:9,13 33:24 2009 (6) 102:14
43:5,22 121:18 118:19 134:10
190:3 135:15 158:20
161 (3) 118:5,5 123:1 171:7
165 (3) 118:2,5,11 2010 (8) 102:14
17 (3) 5:22 28:9 120:14 135:18
205:17 170:25 171:7,8,9
170 (4) 74:15 76:6 172:2
99:20 121:18 2011 (4) 65:17 102:14
173 (2) 118:5 123:1 135:22 170:25
175 (3) 205:19,20,22 2012 (5) 102:14,16
18 (8) 67:1 132:11 105:3,20 171:5
136:20 206:4,7,10 2013 (1) 239:3
208:16,21 2015 (3) 33:13 40:15
180 (1) 99:20 57:1
19 (1) 224:6 2016 (2) 1:1 242:12
194 (3) 30:22,24 31:1 20X (2) 4:2,3
197 (2) 31:1,9 21 (8) 30:11 31:1,10
114:17 118:10
2 134:11 212:18
2 (17) 1:1 30:5 78:13 213:4
210 (12) 74:15 76:6
78:22,23 79:2,3,9
112:6 119:17 121:5
80:9,20 81:3 84:18
123:4,10,13 124:2
101:7 174:15
124:17 125:22
195:24 218:24
127:13
243:5
22 (6) 87:10 140:18
2,500 (1) 77:21
158:22,23 206:11
2.05 (3) 126:25
226:5
128:11,14
220 (34) 4:7 7:4,12
2.5 (1) 90:8
8:4,9,19 9:3 10:2
20 (9) 3:25 4:1 29:5
10:12 16:23 18:1
70:4 85:4 123:18
18:10,18 26:21
140:17 206:11
27:7,20 28:14,21
225:2
32:16 35:20 36:6
20-foot (3) 66:2 71:14
36:14 38:13 41:5
72:11
121:2 141:8,18
20-foot-long (1) 72:14
146:17 147:3 148:2
149:11 156:8 161:7 190:7
23 (3) 112:24,25 114:21
231 (1) 243:6
24 (5) 11:22,23 29:23 59:11,15
24/7 (1) 239:16 240,000 (1) 89:6
25 (13) 11:22,23 140:22,25 141:1 154:24 174:1 194:20 225:13 227:3,8 228:10 229:18
25,000 (9) 200:21,23 201:2 206:17 207:6 207:9 208:15,22 209:3
250 (4) 112:5 138:20 139:8 140:3
250,000 (3) 94:17 95:20 100:11
257 (1) 118:21
26.25 (1) 134:12
27 (5) 128:3 205:4 217:6,25 218:6
27,000 (2) 93:17,22
29 (1) 188:13
3
3 (20) 9:10 29:15,21 29:22,24 53:14 56:24 57:5 58:25 83:3 86:14 89:25 92:13 101:7 175:3 176:22 187:18 218:25 221:20 242:12
3,000 (1) 51:2
3.22 (1) 183:8
3.30 (1) 183:10
30 (7) 37:1 55:8,25 76:1 154:25 170:3 178:17
30-year (1) 92:14
30,000 (3) 88:8 89:6 94:16
30.4 (1) 178:15
300 (28) 2:24 4:6,8 39:23 94:21 97:6 103:14 104:1 105:23 107:1 111:4 137:16 140:13 141:4,17 142:14 143:1,7,24 144:8 145:20 155:11 164:16 195:6 205:12 211:24 220:19 221:5
300,000 (5) 74:21 75:6 77:1 81:22 82:23
31 (3) 15:4 19:24 179:10
32 (2) 15:1,12
320 (2) 176:21 180:8
33 (11) 72:6,7 105:12 105:19 107:10 111:10 159:16 177:23 178:8 179:16 221:17
34 (4) 111:25 112:4 115:14 178:14
35 (2) 112:4 116:2
35,000 (8) 81:17,23 82:8 86:14,15,18 86:22 87:3
350 (1) 99:19
36 (6) 64:19,19,19
103:12 106:15
147:21
364 (1) 205:22
365 (1) 205:24
37 (7) 47:5,24 64:15
64:19 65:11 72:6
72:18
370 (1) 116:1
38 (1) 94:24
39 (4) 66:23 106:15
126:4 189:7
3A (1) 175:18
3Q09 (1) 206:23
4
4 (11) 29:21 30:5 66:4 81:13 86:16,17 87:7 89:25 137:18 138:11 175:19
4.35 (1) 231:14
4.45 (1) 231:11
4.46 (1) 231:16
4.5 (1) 176:5
4.8 (2) 140:14 190:2
40 (22) 4:9 12:3 13:15 26:20 27:3,7 28:13 28:20 29:6 35:19 36:6,14 38:14 56:1 145:10 148:12 150:14 151:8 156:8 156:12 161:7,8
40-foot (1) 72:1
400 (1) 77:19
400,000 (2) 65:17 87:4
41 (1) 181:21
42 (1) 182:18
43 (2) 189:18 191:13
434,000 (1) 103:6
45 (1) 107:9
450 (1) 118:18
46 (1) 105:25
5
5 (7) 29:11 30:12 55:8 56:1 134:15 176:13 179:8
5.00 (1) 242:10
50 (4) 51:12 106:16 202:4,5
50,000 (4) 140:20 205:13,24 206:25
500 (8) 69:24 103:19 105:22 118:18 176:4,10 180:7 187:3
500,000 (16) 66:2,5
69:15 71:21,21
72:22 77:5,19,23
84:13 88:1 94:17
95:18 99:4 100:12
104:2
52 (1) 28:9
54 (1) 199:20
57 (5) 28:24 29:15,20
29:22,24
58 (4) 29:15,20,22,24
6
6 (3) 29:11,14 174:16
6,000 (1) 112:23
6.19 (1) 20:4
60 (5) 29:7 30:3 45:21 149:10 169:12
600 (1) 187:3
62 (2) 210:2,6
65 (2) 30:7,11
66 (2) 30:8,12
69,350,000 (1) 13:9
7
7 (1) 83:4
7,000 (14) 76:9 78:15 80:13 81:5,10,23 82:24 83:14 84:18 85:8,13 86:2,12,25
70 (2) 111:19 113:1
75 (11) 103:7,8 105:3 106:5 107:4 109:12 109:18,23 163:23 174:2 219:12
753 (1) 81:25 753/6 (1) 82:1
8
8 (11) 32:16 44:9,10 45:20 65:14 66:4 84:13,14 87:25 176:13,15
8-hectare (6) 52:19 53:16 68:20 72:25 90:4,7
8.1 (2) 11:11 75:23
8.5 (2) 7:17 18:14
80 (13) 95:24 96:11 99:7 103:8 111:19 137:2,15,22 140:13 141:19 152:15 156:10 161:7
80,000 (1) 87:2
85 (1) 99:7
88 (6) 177:22 178:8 178:16 179:16,25 180:8
88.8 (2) 178:13 180:18
9
9 (4) 6:24 21:21 30:25 135:16
9-10 (1) 76:8
90 (13) 142:16 143:1 143:8,14 144:8 145:3,8,12,24 148:18,21 156:11 161:8
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