In its fourth quarter earnings release Jefferies said it had written down the entire $52m owed to it by OW Bunker. The investment bank provided clearing and execution services for the Danish-headquartered bunker trader.
“The amount of our receivable was increased considerably by the relatively high volatility in energy prices at the time of OW Bunker’s failure to meet margin calls and during our realisation process,” Jefferies said.
“We are pursuing a recovery of the amounts owed to us by OW Bunker. Since the bankruptcy process is in its early stages and we cannot currently estimate what portion of the receivable is likely to be recovered, we have written off the entire amount and value our unsecured creditor position at zero.”
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