Singapore: OW Bunker has announced that it has received information about fraud committed by senior employees within its Singapore-based subsidiary Dynamic Oil Trading (DOT).
While the case is still under investigation, early findings suggest a loss of around $125m.
Separately, OW Bunker has also announced that it has dismissed head of risk management and evp Jane Dahl Christensen after a review of its risk management contracts revealed further losses in addition to the $24.5m loss announced last month. Mark to market losses stand at around $150m.
OW Bunker is currently in discussions with syndicate banks due to the company’s operations and credit facilities being affected by the losses.
In an update this morning OW Bunker said it has decided to file for in-court restructuring for the subsidiaries O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S at the probate court in Aalborg.
The purpose of the in-court restructuring procedure is to establish an overview of whether a basis for continued operations of the companies can be established, including a basis for injecting further capital or other similar solution.
“For the time being, the financial impact cannot be assessed, however, it must be assumed that the group's equity is lost,” OW Bunker said in a release.[06/11/14]