OW Bunker - one of the world's leading suppliers of marine fuel with annual sales of 29.2 million tonnes in 2013 - has today (November 7) confirmed that it has filed for bankruptcy and been subsequently issued with a bankruptcy order.
In a statement, the company said: "Following the announcement on November 6, 2014 (company announcement 26/2014) regarding in-court restructuring procedures in the subsidiaries
O.W. Bunker & Trading A/S and
O.W. Supply & Trading A/S at the probate court in Aalborg, the board of directors and management deeply regret to inform that it has not been possible to find a sustainable solution. As a consequence, OW Bunker A/S, O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S file for bankruptcy."
Niels Henrik Jensen, chairman of the board of directors, explained: "Since the credit facility was closed down on Wednesday, the underlying business has eroded significantly. The banks hold mortgage over all receivables and consequently, without the provision of new, significant credit facilities in the immediate future, it is not possible to save the remaining business. It is now clear that such facilities will not be made available. Nor is a sale as going concern a realistic option. We are therefore left with no option but to file for bankruptcy. On behalf of the entire board of directors and management, we deeply regret this outcome and the consequences affecting the company, its employees, shareholders and business partners."
Following an internal investigation, the company says that it has decided to report "two key employees" at its Singapore-based subsidiary,
Dynamic Oil Trading, to the police and to relieve them of their duty immediately.
Within less than fourty-five minutes of the announcement, the Danish firm confirmed that the probate court in Aalborg had issued a bankruptcy order against
OW Bunker A/S.
Pernille Bigaard, Plesner and John Sommer Schmidt, Gorrissen Federspiel have been appointed as trustees of the bankruptcy estate, the company said.
