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OW Bunker files for bankruptcy in wake of Dynamic Oil Trading fraud scandal

OW Bunker files for bankruptcy in wake of Dynamic Oil Trading fraud scandal
OW Bunker has filed for bankruptcy just two days after a $125m fraud was revealed at Singapore subsidiary Dynamic Oil Trading.

Following revelations of the fraud and a $150m risk management loss OW Bunker had placed its two main operating subsidiaries into in-court restructuring in Denmark, however, on Friday evening the company said it had been unable to find a sustainable solution. “As a consequence, OW Bunker A/S, OW Bunker & Trading A/S and OW Supply & Trading A/S file for bankruptcy,” the company said in a statement.

OW said it had sacked and reported two employees of Dynamic to the Danish police. “As a result of the internal investigation it has been decided to report two key employees in the Singapore-based subsidiary Dynamic Oil Trading to the police pursuant to section 299 of the Danish penal code and to relieve them of duty immediately,” OW Bunker said.

Reports from Denmark have linked Lars Moller ceo of Singapore-based Dynamic to the fraud, however, he was not named in the statement.

Following the revelations of the fraud and the risk management loss 11 out of 13 of the company’s syndicate of banks withdrew their support for OW Bunker.

OW Bunker chairman Niels Henrik Jensen said in a statement on Friday: "Since the credit facility was closed down on Wednesday, the underlying business has eroded significantly. The banks hold mortgage over all receivables and consequently, without the provision of new, significant credit facilities in the immediate future, it is not possible to save the remaining business.

“It is now clear that such facilities will not be made available. Nor is a sale as going concern a realistic option. We are therefore left with no option but to file for bankruptcy”

OW Bunker claimed a 7% share of the global marine fuel market and was Denmark’s third largest company by revenue.