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OW Bunker Far East to meet liquidator over debt on Dec 4

Tuesday, November 18, 2014 - 17:17
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The Singapore arm of bankrupt Danish shipping fuel trader OW Bunker will meet with its liquidator KPMG in early December to discuss the firm's outstanding debt, which totals almost US$1.5 billion globally.

[SINGAPORE] The Singapore arm of bankrupt Danish shipping fuel trader OW Bunker will meet with its liquidator KPMG in early December to discuss the firm's outstanding debt, which totals almost US$1.5 billion globally.

OW Bunker, a leading supplier of marine fuel oil known as "bunker", filed for bankruptcy in Denmark earlier this month after it revealed losses of at least US$125 million at one of its Singapore-based subsidiaries Dynamic Oil Trading, sending the bunker fuel market into turmoil.

A letter signed by OW Bunker's board of directors and seen by Reuters said that a meeting would take place on Dec 4 in Singapore to start winding down the firm and receive a list of creditors and estimated amounts of their claims.

A telephone call to OW Bunker Far East was answered by a KPMG representative, who declined to comment.

On top of the US$750 million OW Bunker owes financers such as banks and pension funds, the firm also owes around 150 trading counterparties globally at least US$730 million in outstanding fuel bills, OW Bunker creditor data dated Nov 7, circulated in the industry and seen by Reuters, showed.

Of the creditors, almost half the fuel debt is owed to 20 firms in amounts of US$10-35 million each, including large energy companies such as Statoil, BP, Sinopec, Glencore subsidiary Chemoil, and Phillips 66, with many other majors like Royal Dutch Shell or Repsol owed slightly less than US$10 million.

Another large creditor is the Aegean group of companies, including US listed Aegean Marine Petroleum, with a combined outstanding debt of more than US$25 million.

Asked about OW Bunker's outstanding debt, a BP spokeswoman in Singapore said via email: "BP does not comment on its commercial activity and we are not able to provide any commentary on the bunkering industry in general. BP continues to operate its business as usual." Requests by phone or email for comment from the other companies were not immediately responded to.

REUTERS

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