Wed 19 Nov 2014, 13:28 GMT

OW Bunker's global debt and the claims so far


Global debt is estimated at $1.5 billion with outstanding fuel bills of $730 million.



OW Bunker's total global debt is estimated at around $1.5 billion. Banks, pension funds and other financial institutions are said to be owed around $750 million, whilst the firm also owes around 150 trading counterparties at least $730 million in outstanding fuel bills, according to OW Bunker creditor data dated November 7 and seen by Reuters.

Last week, a list of seven companies - Hin Leong Trading, Equatorial Marine Fuel Management Services, Bunker House Petroleum, Golden Island Diesel Oil Trading, Sirius Marine, Mitsui & Co Energy Trading Singapore and Panoil Petroleum - made claims in Singapore's courts against OW Bunker Far East and Dynamic Oil Trading for a total amount of over $21.5 million, according to court documents seen by energy reporting service Platts. Another claimant, TNS Bunkers (S) Pte. Ltd., is also cited by The Wall Street Journal.

Yesterday, The Wall Street Journal reported that creditors’ claims against Dynamic Oil Trading and OW Bunker Far East amounted to almost S$48 million (US$37.2 million) from eight companies in Singapore.

The three U.S. subsidiaries that filed for Chapter 11 bankruptcy last week - O.W. Bunker Holding North America Inc., O.W. Bunker North America Inc. and O.W. Bunker USA Inc. - together listed assets between $10 million and $50 million and liabilities between $50 million and $100 million in court filings.

The biggest unsecured creditor was NuStar Energy LP with a $20.6 million claim, followed by Phillips 66 Co., owed $12.9 million; and Tesoro Marine Services, owed $2.3 million. All three claims were listed as disputed by OW Bunker.

Also last week, Danish maritime site ShippingWatch claimed that Belgian bunker supplier Wiljo Bunkering N.V. had "USD 10 million on the line" and that chief commercial officer (CCO) Ronald Verheyen had informed them that the firm had already issued an arrest warrant for "10 to 15 vessels".

According to Reuters, nearly half of OW Bunker's total fuel debt of around $730 million is owed to 20 companies in quantities of $10-35 million each. The companies mentioned were Statoil, BP, Sinopec, Chemoil, Phillips 66 and "many other majors like Royal Dutch Shell or Repsol", who were said to be owed slightly less than $10 million. Aegean Marine Petroleum was said to have a total outstanding debt of more than $25 million.

Meanwhile, Law firm Rajah & Tann Singapore LLP arrested six vessels in Singapore between November 15 and 17, it was revealed yesterday. The six vessels - Star Quest, Petro Asia, Luna, Nepamora, Zmaga and Arowana Milan - were arrested on behalf of Phillips 66 International Trading Pte Ltd, according to Reuters.

On Wednesday, September 12, Rajah & Tann Singapore LLP also arrested the bunker delivery barge Laguna. The law firm had issued a writ of summons on November 8 on behalf of Hin Leong Trading against O.W. Bunker Far East for approximately $1.3 million worth of bunker fuel delivered to the Laguna on or around November 5, documents showed.

Two South Korean refining companies, SK Innovation and GS Caltex Corp, have also disclosed that they are considering legal action against OW Bunker, Singapore's The Business Times claims.


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