THE OW Bunker board was "amazed and surprised" and did not know of, or approve of a US$120 million-$130 million line credit that plunged world's biggest bunker fuel company into bankruptcy, Reuters reports.
Creditors have filed claims totalling $38.8 million against OW Bunker and its Singapore subsidiaries since the company filed for bankruptcy on November 7, according to Singapore court documents.
Company chairman Niels Henrik Jensen said any credit of more than $10 million had to be authorised by the board, referring to the two incidents blamed for the Danish ship fuel company's collapse.
A statement issued by Altor, the private equity firm, that took OW Bunker public, on behalf of the former directors, contained the following:
"The board is as shocked and amazed as everyone else that the losses we have seen on risk management and receivables in the subsidiary, Dynamic Oil Trading, were even possible," said Mr Jensen.
OW Bunker has also placed its US subsidiaries in Chapter 11 bankruptcy protection.
A credit line was given by OW Bunker's Singapore-based subsidiary Dynamic Oil Trading to Tankoil Marine Services, said the report, adding that accusations of fraud among employees have been made.
Mr Jensen said the unrecoverable credit granted Tankoil was never submitted to the board, adding that that the board was also surprised to learn about the $150 million trading loss.
OW Bunker filed for bankruptcy 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 forward to an in-depth investigation into the course of events," said Mr Jensen.
WORLD SHIPPING
21 November 2014 - 22:44
OW Bunker chairman said killer line of credit was not authorised by board
THE OW Bunker board was "amazed and surprised" and did not know of, or approve of a US$120 million-$130 million line credit that plunged world's biggest bunker fuel company into bankruptcy, Reuters reports.
WORLD SHIPPING
21 November 2014 - 22:44
OW Bunker chairman said killer line of credit was not authorised by board
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