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OW Bunker Far East owed creditors $330m, recovery agreement struck

OW Bunker Far East owed creditors $330m, recovery agreement struck
OW Bunker Far East (Singapore) owed $330m to mainly unsecured creditors when it went into liquidation, and local liquidators KMPG and receivers for ING Bank, PricewaterhouseCoopers (PWC), have struck a recovery agreement.

A statement by KMPG, acting as liquidators for OW Bunker Far East (OWB), said that based on unaudited accounts the Singapore-based subsidiary of the bankrupt Danish bunker company owed an estimated $330m to largely unsecured trade creditors.

It said that a cooperation agreement had been struck between KMPG and PWC for the collection of all receivables owed to OWB.

The objective of the cooperation agreement is to maximise recovery while preserving the rights of all parties concerned,” the statement said.

PWC is acting as receivers for ING Bank, which was security agent for an Omnibus Security Agreement signed by OW Bunker in December 2013, four months prior to its public listing in Denmark in March 2014.

The statement added: “At a creditors' meeting held in Singapore today, the creditors were informed that a special resolution in writing had earlier been passed by the sole shareholder of OWB to wind up OWB.

“The creditors' meeting unanimously confirmed the appointment of the Provisional Liquidators - Messrs Bob Yap Cheng Ghee, Chay Fook Yuen and Tay Puay Cheng, all partners of KPMG – as liquidators.”

Dynamic Oil Trading, OW Bunker's other subsidiary in Singapore, is involved in a separate liquidation where KMPG was also appointed as provisional liquidator. Dynamic Oil Trading was involved in the alleged $125m fraud which partly caused the collapse of the global bunker supplier.