Singapore Arms of OW Bunker Going Bust
Singapore-based Dynamic Oil Trading, has joined OW Bunker Far East Pte. Ltd., in filing for liquidation thus becoming the second subsidiary of Danish fuel supplier OW Bunker in going bankrupt.
Both arms of the troubled OW Bunker have appointed KPMG as their liquidator. OW Bunker Far East and Dynamic Oil, are facing court claims by creditors worth USD 37 million.
OW Bunker Far East will meet with its liquidator KPMG on December 4 to discuss the firm’s outstanding debt, which totals almost USD 1.5 billion globally, as written by Reuters.
The unit is expected to shut down and a list of creditors and an estimated amount of their claims are going to be made, Reuters said citing a letter signed by the Danish firm’s board of directors.
Legal claims have started to pile up from oil firms resulting in seizing of ships so as to ensure payment.
Seven vessels have been arrested so far, those being Star Quest, Petro Asia, Luna, Nepamora, Zmaga and Arowana Milan and delivery barge Laguna by Rajah & Tann Singapore LLP, Reuters reported.
Creditors’ claims against Dynamic Oil Trading and OW Bunker Far East have reached USD 37.2 million) from eight companies in Singapore.
OW Bunker has also accrued USD 730 million in outstanding fuel bills to around 150 trading counterparties globally, according to OW Bunker creditor data dated Nov. 7 seen by Reuters.
A Skuld P&I representative was quoted by Platts as saying that no returns can be expected on any money from OW Bunker.
“In the hierarchy of payments from OW Bunker now, it is likely that the liquidators are to be paid their fees first, followed by payment of any outstanding taxes owed to governments.
Banks would be next in line for outstanding payments and this would be followed by OW Bunker’s staff salaries, they added.
Any other creditors would come after the priority list,” Platts writes.
Danish Shareholders’ Association is preparing what might turn out to be several lawsuits related to OW Bunker bankruptcy case, Jens Moller Nielsen, CEO of Danish Shipowners’ Association told World Maritime News.
As explained by Mr Nielsen, the association is currently gathering private investors to prepare the lawsuits, however, it is hard to identify at the moment who shall actually be targeted by them.
In Denmark, two law firms, Plesner and Gorrisssen Federspiel, have been appointed as trustees in bankruptcy of OW Bunker A/S.
World Maritime News Staff