OW Bunker Management Knew about Tankoil Loan

Business & Finance

Senior management of Danish marine fuel distributor OW Bunker was informed of the loan approved to Tankoil Marine Services by the Singapore-based Dynamic Oil Trading (DOT), based on the email addressed to OW Bunker CFO Morten Skou, published by Danish publication Fians.

The email dated on September 25 shows a list of clients whose debts were due including Tankoil.

Previous reports said that the credit line worth up to USD 130 million that was given by Singapore arm of OW Bunker DOT to Tankoil Marine Services, was not authorized by the parent company’s board.

The company’s Chairman Niels Henrik Jensen, cited by Reuters, said that “the credit granted to Tankoil was never submitted to the board, let alone authorised by it.”

OW Bunker filed for bankruptcy protection on November 7 having reported a loss of at least USD 275 million resulting from a fraud by senior employees at Singapore subsidiary and mark-to-market losses.

The bankruptcy has had a ripple effect on Singapore units, along with those in the US.

The latest turn of events has seen 25 institutional investors, including Danish pension fund ATP, file claims against OW Bunker and its private equity group Altor worth DKK 803 million (USD 129 million), Danish daily Berlingske Business writes.

According to ATP’s Head of Equities, Claus Wiinblad, cited by the daily, the move is merely a formality and a definite decision on pursuing the claims hasn’t been made yet.

World Maritime News Staff