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World's largest ship fuel supplier has filed for bankruptcy after alleged fraud

Sunday, November 9th 2014 - 10:13 UTC
Full article 3 comments
The company owes 13 banks 750m dollars and says it cannot survive without new credit. The bankruptcy filing was lodged in the probate court in Aalborg The company owes 13 banks 750m dollars and says it cannot survive without new credit. The bankruptcy filing was lodged in the probate court in Aalborg
Chairman, Niels Henrik Jensen, said: “It is now clear that such facilities will not be made available. Nor is a sale as a going concern a realistic option.” Chairman, Niels Henrik Jensen, said: “It is now clear that such facilities will not be made available. Nor is a sale as a going concern a realistic option.”

The world's largest ship fuel supplier, OW Bunker, has filed for bankruptcy after alleged fraud. The company's troubles came to light earlier this week when it discovered suspected fraud by senior employees in a Singapore-based subsidiary.

 OW Bunker is Denmark's third-largest company and supplies 7% of the world's bunker fuel, used in shipping. Shipping lines were trying to find alternative suppliers in the wake of the news late on Friday.

The company owes 13 banks 750m dollars and says it cannot survive without new credit.

OW Bunker's chairman, Niels Henrik Jensen, said in a statement: “It is now clear that such facilities will not be made available. Nor is a sale as a going concern a realistic option.”

The bankruptcy filing was lodged in the probate court in Aalborg in northern Denmark.

The company said on Thursday it had discovered fraud by senior employees in its Singapore-based subsidiary, Dynamic Oil Trading.

The statement also said: ”As a result of the internal investigation it has been decided to report two key employees in the Singapore-based subsidiary Dynamic Oil Trading (DOT) to the police... and to relieve them of duty immediately.”

OW Bunker only became a public company this year when it joined Copenhagen's Nasdaq in March. Its float was a market highlight, the second biggest initial public offering of shares since 2010.

In October it published figures estimating a trading loss of 24.5m, but has now increased that to 150m. The alleged fraud at DOT is potentially one of the biggest financial market scandals to hit Singapore in 10 years.

Categories: Economy, International.

Top Comments

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  • Think

    Bloody Danish-Singaporean Banksters...

    Nov 09th, 2014 - 10:27 am 0
  • ilsen

    Yep, I've had a beady eye on them for a while now. ...
    ... not!!

    Nov 09th, 2014 - 11:33 am 0
  • ChrisR

    I bet it's an argie trader whot did it!

    Another example of the lack of control by people such as Niels Henrik Jensen in ensuring adequate investigation at all levels of the business were ALWAYS operating.

    It's not rocket science and I bet this character will retire a multi-millionaire after his payment from the float. And WTF did the due-diligence BEFORE the offer?

    Nov 09th, 2014 - 07:56 pm 0
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