OW Bunker Sounds Fraud Alarm

OW Bunker Sounds Fraud Alarm

OW Bunker Sounds Fraud Alarm

Denmark’s OW Bunker is investigating an alleged fraud committed by senior employees in its Singapore-based subsidiary Dynamic Oil Trading (DOT), saying that the extent of the fraud is not yet clear, but preliminary findings suggest a potential loss of around USD 125 million.

Separately, OW Bunker said that a review of risk management contracts has 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 is around USD 150 million.  The company said that risk management contracts are currently being unwound in order to reduce risk management exposure to a minimum level.

Head of Risk Management and EVP Jane Dahl Christensen has as a consequence of the risk management loss been dismissed with immediate effect. The company claims that the above events have affected OW Bunker’s operations and credit facilities.

OW Bunker started discussions with the syndicate banks in an effort to solve the issue, but later on reported that the talks were unsuccessful. Therefore, the company has decided to file for commencement of in-court restructuring procedure in the subsidiaries O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S at the probate court in Aalborg. The main operational activities of the group are located in these companies, which are expected to be insolvent, according to OW Bunker.

The marine fuel supplier said that the purpose of the in-court restructuring procedure is to establish an overview of whether a basis for continued operations of the companies can be established, including a basis for injecting further capital or other similar solution.

For the time being, the financial impact cannot be assessed, but OW Bunker says it must be assumed that the group’s equity is lost.

 Press Release

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >