OW Bunker today has been given until December 1, 2014 to come up with a restructuring plan.
Following a short hearing at the bankruptcy court in Aalborg, Denmark, OW Bunker today has been given until December 1, 2014 to come up with a restructuring plan, Danish media reports.
Earlier today, the Denmark-based bunker company said it had decided to file for commencement of in-court restructuring procedure following revelations of a $125 million fraud at its Singapore-based subsidiary Dynamic Oil Trading, plus a risk management loss that could be as high as $150 million.
"We are deeply alarmed at the way the situation has developed over a very short period of time," said Søren Johansen, a Board member of OW Bunker and partner in Altor Equity Partners after the hearing.
Søren Johansen, a Board member of OW Bunker and partner in Altor Equity Partners
The impact to employees, shareholders, and customers is terrible
"We have to get to the bottom of this as soon as possible. The impact to employees, shareholders, and customers is terrible."
Swedish private equity firm Altor Equity Partners (Altor) acquired OW Bunker in 2007 when its €1.15 billion ($1.5 billion) Altor Fund II investment vehicle bought the Wrist Group and its subsidiaries.
The bunker company was then floated on NASDAQ OMX Copenhagen in March 2014, with Altor retaining a share understood to be around 35 percent via OW Lux.
OW Bunker, who inked a new $700 million revolving credit facility in January, is reported to owe 13 banks $750 million.