KPMG: OW Bunker Collection Pact Does Not Extend to Singapore Subsidiaries

KPMG is the Provisional Liquidators of OW Bunker's Singapore companies

KPMG, the Provisional Liquidators of OW Bunker subsidiaries O.W. Bunker Far East (Singapore) and Dynamic Oil Trading (Singapore) (DOT), today in an emailed statement said that trustees and receivers in Denmark do not have secured rights over all receivables of the two Singaporean entities, and that a receivable collection pact signed in Copenhagen last week does not limit their powers to act for the companies' unsecured creditors.

KPMG said it had made the clarification because of confusion over the fact that a global credit facility extended by a syndicate of banks to OW Bunker in Denmark gave the lending syndicate claims over certain assets of various OW Bunker entities around the world, including the two Singapore subsidiaries.

Ship & Bunker reported on Thursday that following the agreement between Pricewaterhouse Coopers (PwC) and ING Bank B.V. (ING), PwC said that its collections team in Denmark "will pursue all global receivables assigned and charged to ING."

"ING does not have claims over all the receivables of the failed companies in Singapore, only on those assigned and charged to ING," said Bob Yap, one of the three Provisional Liquidators.

"Receivables not assigned and charged to ING remain the assets of the companies and the Provisional Liquidators have not authorised any third party to collect or deal with them."

As Provisional Liquidators of the two Singapore companies, KPMG said they are vested with statutory powers to take custody and control of all their assets, including receivables to which the companies are or appear to be entitled, while ING is entitled only to receivables which have been "validly and rightfully assigned and charged" to ING.

"We are actively working hard to identify the specific receivables of OW Bunker Far East (Singapore) and Dynamic Oil Trading (Singapore) which have been secured in favour of ING, as well as those which have not been so secured," said Yap.

"Since our appointment, we have been exploring with the receivers appointed by ING as to the possibility of implementing an agreed framework and protocol for the identification and collection of these receivables of those entities.

"We are confident that with a mutually agreed framework for assistance, support and cooperation in place with the receivers, the recovery will be achieved in an efficient manner, in particular to minimise costs for all parties concerned and we will continue to work towards achieving this."

OW Bunker filed for bankruptcy last month, two days after revealing a risk management loss it estimated at $150 million, plus a $125 million alleged fraud at DOT.