$200,000 Bunker Bill Could Cost OW Bunker "Double Payment" Buyer $1 Million

The small Dutch shipping company is said to be subject to double payment and additional charges for non-payment.

A small Dutch shipping company is facing the prospect of paying out $1 million over bunkers totalling $200,000 bought through OW Bunker prior to the bunker company's collapse last year, according to reports in Danish media.

The shipping company in question, said to be represented by Ocean 7 Projects, is one of a number of bunker buyers facing a double payment dilemma brought about by OW Bunker's downfall, where both the physical supplier and trustees of OW Bunker - who were acting as the middle men - are claiming for payment for the same bunkers.

In this instance, the shipping company is reported to have received payment requests from both the physical supplier and OW Bunker trustees. 

However, following action taken by the physical supplier six months ago, the company says it had its vessel arrested and was forced to pay the $200,000 bunker bill in full to release the seized ship.

A test case currently going through British courts to determine who should be rightfully paid in such situations, was recently ruled in the favour of OW Bunker trustees for a third time, and while it is understood an additional appeal in the Supreme Court is expected, it looks increasingly likely that OW Bunker trustees will be due payment.

As a result, OW Bunker trustees are reported to now be demanding double payment of the $200,000 from the Dutch shipowner, and say that if they fail to do so, they will be required to pay an additional $600,000 in costs related to interest and another delivery.

If the case went to court and was won by OW Bunker trustees, as is now looking increasing likely to be the case, it would mean the shipping company would face paying out $800,000 in addition to the $200,000 it already paid to the physical supplier for the bunkers.

John Levin, Director of Ocean 7 Projects, says that the situation will likely bankrupt the company, while OW Bunker trustee John Sommer Schmidt says all creditors must be treated equally.

Last week, Ship & Bunker reported that investigations into Singapore's bankrupt former top 10 bunker supplier Tankoil Marine Services (Tankoil), key debtor of the now-defunct OW Bunker subsidiary Dynamic Oil Trading (DOT), has not turned up any money, leaving a missing $125 million still unaccounted for.