OW Bunker A/S the global marine fuel company filed for bankruptcy on November 2014
OW Bunker A/S the global marine fuel company filed for bankruptcy on the 7th November 2014 and reported two senior employees for fraud. The company had operations in 29 countries, and as one of the world’s largest independent bunker logistic companies had an estimated global market share of 7%.
Two OW companies have filed for liquidation so far, OW Bunker and Trading AS and OW Supply and Trading AS. However, in light of the $125m fraud in Singapore and $150m risk management loss which have led to this situation, it seems likely that the rest of the OW Group may follow.
The UK Defence Club have compiled a FAQ relating to OW Bunkers to assist operators anwering to the following questions:
- What OW entities are affected?
- Do OW act as physical suppliers and intermediaries?
- Will third party suppliers have a lien over the fuel and/or the ship?
- Stems from OW are being provided shortly. Should we change the on-board procedures?
- We have contracts with OW for the future supply of fuel. What should we do?
- OW has sub-contracted with a third party supplier which is now demanding direct payment to them. We now face competing demands for payment by OW and the physical supplier. What should we do?
- OW seem to agree to such direct payment in e mail correspondence. Can we agree to the direct payment?
- How much should be paid to the third party supplier?
- What approach should shipowners take when faced by a threat of arrest by physical supplier?
- What terms and conditions apply to my contract with OW?
- The ship’s time charterer plans to load bunkers supplied by OW. Can the shipowner refuse?
- In the event that shipowners are on notice of a supply of bunkers ordered by a time charterer from OW can any preventative steps be taken?
- The ship’s charterer has failed to pay OW and suppliers are now demanding payment. What are the consequences?
Find the answers at http://www.ukpandi.com/knowledge/article/faqs-relating-to-ow-bunkers-130742/
Also readSkuld update on OW Bunker bankruptcy