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OW Bunker chairman says board did not approve credit line that caused collapse
[COPENHAGEN] The board of OW Bunker did not approve a large credit line and had been "extremely surprised" by a huge trading loss, the chairman said on Thursday, referring to the two incidents blamed for the Danish ship fuel company's collapse.
A credit line estimated at between US$120 million and US$130 million was given by OW Bunker's Singapore-based subsidiary Dynamic Oil Trading to Tankoil Marine Services.
The unrecoverable credit granted Tankoil was never submitted to the board, let alone authorised by it, Chairman Niels Henrik Jensen said, adding that any credit of more than US$10 million was supposed to be authorised.
The board of directors was also extremely surprised to learn of the US$150 million trading loss, he said.
The world's largest bunker fuel company filed for bankruptcy on Nov 7 only eight months after listing in the second-biggest stock market flotation in Denmark since 2010.
"It remains unclear to the board how this could happen and the board is looking very much forward to an in-depth investigation into the course of events," Mr Jensen said in a statement.
Creditors of OW Bunker Far East and Dynamic Oil Trading have filed claims totalling US$38.8 million against the companies since OW Bunker filed for bankruptcy, according to Singapore court documents.