World News
Investment Bank Jefferies Provides $52M Against OW Bunker Debts
Investment bank Jefferies Tuesday revealed in a press release on its fourth quarter (Q4) 2014 results that is has fully provided against a $52 million receivable held in its accounts relating to OW Bunker.
The bank said it had provided futures clearing and execution services to OW Bunker and its Q4 results had been "significantly impacted by the OW Bunker bad debt provision."
OW Bunker collapsed on November 7, after uncovering unexpected losses amounting to $275 million.
"The amount of our receivable was increased considerably by the relatively high volatility in energy prices at the time of OW Bunker's failure to meet margin calls and during our realization process," said Jefferies.
"We are pursuing a recovery of the amounts owed to us by OW Bunker."
But it is too early to tell if it will be able to recover any of the debts it had booked.
"Since the bankruptcy process is in its early stages and we cannot currently estimate what portion of the receivable is likely to be recovered, we have written off the entire amount and value our unsecured creditor position at zero."
Dutch bank ING is said to be directly making claims for outstanding OW Bunker debts from "hundreds" of companies rather than leave recovery in the hands of liquidators.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
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