The conflict led to the escape of Bernt Pessart, and the command at Tranquebar accepted Willem Leyel as governor of Danish India.
[4] Instead Gjedde succeeded in signing a treaty with the nayak of the Thanjavurian kingdom, which by an annual tribute gave the Danes the right to the small fishing village of Tharangambadi.
[5] During the 1620s and 30's trade flourished, and a far-flung string of Danish factories and outposts were established in Bengal, the Coromandel Coast and Sunda Islands.
[6] Though in the late 1630s and early 40's the company would start to owe large debts, and in response governor Bernt Pessart unsuccessfully made numerous risky voyages to make money.
[6][11][13] Here he fulfilled his royal orders and investigated Tranquebar; He noticed heavy damage to Fort Dansborg and found the warehouse empty.
[6][10] When leaving Tranquebar, distrusted Leyel put a couple of men loyal to him on each of Pessart's ships and left others at Dansborg.
[11] Here on 10 October Pessart tried to get the vessel, The Bengali Prize nearer to shore so it could unload, yet it ran aground and was badly damaged.
[6][11] This move was a minor risk; If Pessart had found out what was happening, he might have came out of his tent with his 20 armed men and a fight might have occurred, which Leyel wished to avoid.
[6][10] Unsure of the situation, Leyel sent letters to the commander at Dansborg, Jacob von Stackenborg, and chaplain, Niels Andersen with no response.
[6]After some time Leyel was still denied access to Tranquebar, and was therefore in need of fresh provisions, so he left for Karaikal,[13] where he would send Portuguese Antonio Pacheco to Dansborg for negotiations.
[6] As response to the poor conditions and conflict with Pessart, he summoned a coincil meeting which ended in the recognition of Leyel as the new governor.