OW Bunker Middle East Receivables Recovery Deal Signed
A bankrupt Danish fuel supplier OW Bunker has reached an agreement with its liquidators and receivers from KPMG Lower Gulf Limited and PricewaterhouseCooopers (PwC), and its security agent ING Bank (N.V.), to co-operate in the collection of receivables from OW Middle East pledged to ING.
The parties agreed that all recoveries from OW Middle East receivables will be paid into ING accounts specified by PwC.
KPMG and PwC will consult and co-operate on issues relating to the jointly agreed receivables collection process and other matters where there are aligned interests.
”Ever since we reached agreement with the trustee of OW Bunker Denmark which was publicly announced on 26 November 2014 to establish a central platform for collection of global OW Bunker Group receivables, we have been in discussions with OW Bunker affiliates regarding co-operation in collecting receivables,” Paul Copley, joint receiver and PwC UK partner, said.
”In addition to reaching agreement with affiliates in China, the UK, the Netherlands, Switzerland, Belgium and two in Singapore, we have now signed a further agreement with the liquidators of OW Middle East.We will work together with the liquidators and the global collections team in Denmark in order to maximise recoveries of receivables due to OW Middle East.”
OW Bunker had filed for bankruptcy in November 2014, shortly after announcing an investigation into an alleged fraud committed by senior employees in its Singapore-based subsidiary Dynamic Oil Trading (DOT) which had led to a loss of around USD 125 million.
OW Bunker also said that a review of risk management contracts had revealed a significant risk management loss in addition to the loss of USD 24.5 million announced on October 23, 2014. According to the company, the mark to market loss had been around USD 150 million.