More subsidiaries of OW Bunker's global network are in the process of being placed into banktuptcy, according to reports.
In Singapore,
KPMG has been appointed as the provisional liquidator for
OW Bunker Far East (Singapore) Pte. Ltd.,
Bob Yap [pictured], Head of Advisory at KPMG in Singapore, was cited by
The Straits Times as saying on Thursday, November 13.
On Saturday, Singapore's Accounting and Corporate Regulatory Authority (ACRA) - the national regulator of business entities and public accountants in Singapore - listed OW Bunker Far East as "in liquidation -- creditors' voluntary winding up", energy information service
Platts reports.
The
Straits Times claimed last week that the salaries of OW Bunker Far East's nearly 60 members of staff were still being paid by the company's management.
"This is a creditors' voluntary liquidation. We are not making any decision to terminate any employee as of now. We need to decide who we need to help with the process," Yap is quoted as saying by the Singapore news service, adding: "If there are layoffs, those terminated have a preferential claim of up to $7,500, in accordance with the Companies Act Section 328."
Yap is reported to have added that in accordance with Section 328, employee claims are ranked ahead of unsecured creditors. If a supplier has a claim for unpaid supplies, it needs to file a proof of debt with the liquidator.
Meanwhile,
Precious Shipping Public Company Limited and its subsidiaries Precious Visions and Precious Sapphires have sought the winding up of OW Bunker Far East, according to a court filing seen by
Platts on Saturday.
The documents, filed on Friday, are said to name four other respondents:
Uni Petroleum,
Shell Eastern Trading,
Transocean Oil, and
ING Bank.
The nature of the dispute was listed as "bunker claim" with the total value of the claims said to be $831,033.12.
'Closed-door' meeting
The name of OW Bunker Far East's liquidator, KPMG, was also revealed during a meeting on Friday, jointly held by the Maritime and Port Authority of Singapore (MPA) and the International Bunker Industry Association (IBIA),
Platts cites market sources as saying, whilst adding that media representatives were not allowed to attend the "closed-door" meeting.
A representative of protection and indemnity (P&I) insurance provider
Skuld informed attendees at the meeting that the liquidators of OW Bunker Far East are to be paid their fees first. Any outstanding taxes owed to governments would be next in line, followed by banks and then OW Bunker's staff salaries. Any other creditors would come after the "priority list", Platts said.
MPA representatives are said to have informed attendees that there has not yet been any official police report against either company in Denmark or Singapore in relation to the
statement made by OW Bunker on November 5, where the firm said it had "been informed about a fraud committed by senior employees" at its Singapore-based subsidiary
Dynamic Oil Trading.
As a result, the Commercial Affairs Department (CAD) of the Singapore Police Force is currently unable to take any action, the MPA representatives are said to have added.
OW Bunker Germany and Dynamic Oil Trading
In addition to the previously reported bankruptcy filings in
Denmark and the
United States, and the aforementioned liquidation proceedings in Singapore, Skuld issued a
circular to its members on Friday, where it said that it was aware of steps being taken to declare the bankruptcy of OW Bunker in
Germany (O.W. Bunker Germany GmbH).
In the statement, Skuld said: "Further to the Association's advices of 7 November 2014, more information has come to light with respect to the potential impact and scale of the consequences from the bankruptcy of OW Bunker A/S in Denmark.
"As of today's date, the Association is aware of OW companies declaring bankruptcy or taking steps in that regard in Denmark, Germany, Singapore and the USA.
"Among these are the parent OW Bunker A/S, OW Bunker & Trading, OW Bunker Supply & Trading as well as OW Bunker Far East.
"At present the situation with respect to Dynamic Oil Trading is not sufficiently clear to make a firm statement, but there are likely to be developments in the near future.
"The Association is aware of there being possibly up to 40 OW Bunker and related offices around the world and a number of different trading names. As such it is likely that further news and developments will occur in a number of jurisdiction in the near future and members are advised to follow these closely to see how they may be affected.
In Denmark, OW Bunker has already
confirmed that Dynamic Oil Trading A/S has been placed under formal bankruptcy proceedings, together with OW Bunker A/S, O.W. Bunker & Trading A/S, O.W. Bunker Supply & Trading A/S, O.W. Cargo Denmark A/S and Wrist Marine Supplies A/S.
Image: Bob Yap is Head of Advisory at KPMG in Singapore. The firm is said to have been appointed as the provisional liquidator for OW Bunker Far East (Singapore) Pte. Ltd.
