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International bunker supplier and trader OW Bunker has released a statement to clarify its current credit status with Armada (Singapore) Pte, which filed for bankruptcy protection from creditors last week.

OW Bunker said in the statement "Following the article published in Bunkerworld on 12th January 2008 relating to Armada (Singapore) PTE filing protection from its creditors (‘Bunker Hedges add to Armada’s problems’), OW Bunker would like to stress that information relating to outstanding credit owed ($345,000) to OW Bunker by Armada was factually incorrect. In fact, Armada has no outstanding or open balance owed to any OW Bunker office."

Privately owned Armada is one of the world's leading dry bulk shipping companies providing ocean transportation services to a number of major raw material and commodity shippers worldwide. The company filed for bankruptcy protection in Singapore last week and faces claims of at least $500 million from creditors following the collapse in commodity shipping rates and customers' defaults as a consequence of the global economic downturn.

In an affidavit filed by the company's Managing Director Tommy Jensen Rathleff, there are said to be a total of 64 creditors owed money by Singapore-based Armada.

The list reportedly includes Transfield Shipping Co ($95.5 million), Kawasaki Kisen Kaisha Ltd. (K Line) ($113 million), Pacific Bulk Shipping Ltd. ($73 million), Rozzi-Bottiglieri de Carlini Armatory SpA ($70.4 million) and Deiulemar Group ($64.4 million).

Court protection gives Armada eight weeks to come up with a restructuring plan. With a plan, creditors may recover 30 cents on the dollar, compared with receiving up to 5 cents on the dollar if the company liquidated, the court filing said.

Commenting on the company's current financial position, Rathleff said last week: "Instead of simply liquidating, a Section 210 restructuring provides ASPL with the time needed to stabilize its liquidity position, strengthen its balance sheet, and recover third-party debts – while allowing the company to continue providing transportation services to its customers around the world.

“It’s additionally important that, as a result of this restructuring, we will still be the captains of our own ship,” said Rathleff. “There will be no outside overseers directing how we conduct our business and serve our clients.