Singapore's Dynamic Oil Trading Calls in Liquidators

by Ship & Bunker News Team
Wednesday November 19, 2014

Dynamic Oil Trading Singapore Pte. Ltd. (DOT) has Tuesday filed for liquidation following sister company OW Bunker Far East (Singapore) Pte. Ltd. (OW Bunker Far East), which filed last week, The Wall Street Journal (WSJ) reports.

The Danish group's parent OW Bunker A/S filed for bankruptcy in Denmark on November 7, with its U.S. subsidiaries filing for Chapter 11 proceedings on Thursday, November 13.

Accounting firm KPMG is understood to have been appointed provisional liquidator for DOT, as it was for OW Bunker Far East.

Creditors will now be required to file a proof of claim to the court in advance of a Creditors' Meeting.

OW Bunker Far East and KPMG are due to meet on December 4 to determine the list of the company's creditors and an estimate of amounts claimed, Reuters reported separately.

According to the WSJ report, the two Singapore units contributed 30 percent of the group's total revenue.

To date, total creditors' claims against the two companies are said to have reached S$48 million ($37.2 million) from eight companies.

Dynamic Oil Trading was launched at the end of 2012, and only a few weeks prior to the events leading to the collapse of both DOT and parent OW Bunker, CEO Lars Møller told Ship & Bunker it had enjoyed two "very strong" years.

DOT has been accused by its parent OW Bunker of orchestrating a fraud that resulted in a loss of $125 million, something which was revealed at the same time OW Bunker said it had also made a $150 million risk management related loss.

However lawyers acting on behalf of DOT CEO Lars Møller maintain nothing illegal happened.

Ship & Bunker News Team
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