Singapore: Reeling from a massive $125m fraud shock at its Singapore subsidiary Dynamic Oil Trading, Denmark’s OW Bunker has been forced to declare two bankruptcies. Moreover, OW Bunker has reported two employees at its Singapore offshoot to the police pursuant to section 299 of the Danish penal code and to relieve them of duty immediately.
Chairman of the board of directors, Niels Henrik Jensen said:"Since the credit facility was closed down on Wednesday, the underlying business has eroded significantly. The banks hold mortgage over all receivables and consequently, without the provision of new, significant credit facilities in the immediate future, it is not possible to save the remaining business. It is now clear that such facilities will not be made available. Nor is a sale as going concern a realistic option. We are therefore left with no option but to file for bankruptcy. On behalf of the entire board of directors and management, we deeply regret this outcome and the consequences affecting the company, its employees, shareholders and business partners."
OW Bunker is Denmark’s third largest company by revenue. [10/11/14]
OW Bunker facing $125m loss from Dynamic Oil Trading fraud