GP Global Asset Sale Rumours Downplayed

GP Global is based in Dubai. File Image / Pixabay

Middle East-based GP Global, which is in the middle of a restructuring process after an alleged fraud among some of its employees was uncovered, is not currently in discussions to sell any part of its business, according to a source familiar with the situation.

This week several sources have approached Ship & Bunker with the suggestion that large commodity trading companies are looking to buy part or all of GP. A few different commodity trading companies have been mentioned in this context.

The company's discussions with lenders are still ongoing, and it has not reached the stage of discussing asset sales with other parties, according to a source familiar with the situation.

But at the same time, it is incorrect to say that the company has ruled out discussions of this type, as has been reported elsewhere, the source said.

GP's bunker business has been largely paused as the company seeks new backing from its lenders.

Some previously arranged stems are still being carried out, but the company has been advised against taking on new business for now while its balance sheet is under review, it said earlier this month.

A trader for the company told Ship & Bunker this week that staff were still being paid and told to wait for new developments.

At the start of August the company announced it had hired Rod Sutton as chief restructuring officer, as well as bringing in UK-based firm Quantuma to assist with its restructuring.

The previous week the company's lawyers released a letter to clients saying it had uncovered a fraud by some of its employees in the UAE, leading to criminal charges against some of them.

GP Global was assessed as one of the world's largest bunker suppliers in a joint report by marine credit company SeaCred and Ship & Bunker last year.