EMEA News
30 Traders, Shipowners, Charterers Face Legal Action in Denmark from OW Bunker Trustees
Lloyd's List says about 30 shipowners, charterers, and traders will be facing legal action in Denmark as a result of acting as counterparties for "in-the-money" bunker contracts with OW Bunker, Shipping Watch reports.
The bankrupt estate's trustees are said to be attempting to obtain $30 million through the action, which has been described as "groundbreaking."
The success of the action will largely hinge on jurisdiction, predicts Lloyd's List, who says that futures contracts normally fall under British law, which suspends payments in cases of insolvency.
The OW Bunker trustees however are reported to be arguing that the case should instead be decided in accordance with Danish law, which would permit the requirement payments to stand.
Johannes Grove Nielsen, a partner at Bech-Bruun, a law firm representing a number of the parties being sued in the case, says the decision will most likely be made in the beginning of 2016.
Nielsen adds that if the case is decided in favour of the OW Bunker estate trustees, the results would create a precedent that put the industry in "uncharted territory."
In September, it was reported that three product tankers were arrested in Singapore and India by ING Bank (ING) as the Dutch financial giant moved to collect outstanding OW Bunker debts.
