Legal Challenge Brews Over GP Global Fujairah Terminal Sale

The Fujairah terminal has 412,000 m3 of storage capacity, with 17 product tanks and two utility tanks, and can handle fuel oil, gasoil and cutter stock. Image Credit: GP Global

A legal challenge looks set to emerge over restructuring commodity trading firm GP Global's $124 million sale of its Fujairah bunkering terminal.

As Ship & Bunker reported earlier this year, FTI Consulting -- now running GP Global during its restructuring process -- sold the Fujairah terminal to Mount Row Partners for $124 million at the end of May. Funds for the purchase of the terminal are understood to have been owned by Delaware Life Insurance in the US.

A source familiar with the transaction has now raised concerns over the legality of the deal.

The source claims GP Global's shareholders did not sign a power of attorney document authorising FTI to make the terminal land transfer on their behalf, or other documents authorising the sale.

In addition, shipping firm V8 Pool Inc had been awarded an attachment against the terminal by a court in Sharjah as part of its legal fight to reclaim money owed to it by GP Global, but was not paid money from the proceeds of the terminal sale in compensation, according to the source. Two other firms with attachments against the terminal were paid compensation to allow the sale to go ahead, the source said.

Rod Sutton of FTI Consulting, appointed GP Global's chief restructuring officer two years ago, told Ship & Bunker this week that the sale was carried out legitimately.

"All of the Fujairah government's requirements for the land transfer were met," he said.

Sutton added that the V8 attachment had been against the Fujairah terminal's holding company, rather than the terminal company itself, meaning the attachment had not needed to be addressed before the sale.

He also said he was unaware of any legal fight in relation to the terminal sale.

Representatives of Mount Row, Delaware Life, V8 and the GP Global shareholders did not respond to a request for comment.

GP Global went into restructuring in July 2020 following financial difficulties, and subsequently announced it had uncovered fraud by some of its employees in the UAE. The firm had been a significant presence in global bunker markets, as well as in other commodity markets.

Two other companies, Indian multinational JSW Group and Switzerland-based commodity trading firm Mocoh, are understood to have shown interest in buying the Fujairah terminal prior to the sale to Mount Row.

The Fujairah terminal has 412,000 m3 of storage capacity, with 17 product tanks and two utility tanks, and can handle fuel oil, gasoil and cutter stock. The terminal was historically handling as much as 7.4 million mt/year of refined product deliveries, of which a large share was marine fuels.

Two other GP Global terminals in the UAE, the Hamriyah Terminal and the Inner Harbour Terminal, are also up for sale as part of the company's restructuring.