Aegean Looking to Recover $2.3 Million from OW Bunker Deals

The company currently has $7 million in outstanding receivables from various OW Bunker entities.

Aegean Marine Pretroleum Network Inc. [NYSE: ANW] (Aegean) is expecting to recover at least $2.3 million of the losses incurred in the fallout of OW Bunker's November 2014 bankruptcy, the bunker supplier said in a recent U.S. Securities and Exchange Commission (SEC) filing.

Aegean said it had supplied bunkers under agreements with various OW Bunker entities, and had issued a request for payment to OW Bunker for the value of the bunkers supplied.

"Our exposure for these supplies amounts to $5.5 million, of which we recorded $3.3 million as a provision for doubtful accounts in the statement of income for the year ended December 31, 2014," Aegean wrote in its annual report filed with the SEC on Friday May 15, 2015.

"We believe that OW Bunker was never the rightful owner of the bunkers and we are currently trying to work out escrow or other practical solutions with the end users.

"Following arrest proceedings which we initiated against the M/V Amazon in the Bahamas, we received a letter of undertaking issued by the North of England P&I Club in the sum of $1.2 million as security for our claim plus interest and costs. We expect to recover the amount of at least $2.3 million."

Aegean also said it currently has $7 million in outstanding receivables from various OW Bunker entities and noted it may not be able to recover outstanding balances from customers who go bankrupt.

"We extend trade credit to most of our customers," Aegean said.

"Our success in attracting business has been due, in part, to our willingness to extend trade credit on an unsecured basis to our customers."

Aegean noted that as of December 31, 2014, 82 of its customers representing 78 percent of its total customers, had outstanding balances of at least $1.0 million under lines of credit that had been extended to them.

In the same filing, Aegean also revealed it has taken legal action against Hess Corporation (Hess), and is seeking $28 million in compensation over what it claims was a lack of transparency in connection with its purchase of Hess' U.S. East Coast bunkering business.