Danish maritime company, OW Bunker has filed for court restructuring after evidence has emerged that it may be the victim of fraud.
Senior employees at the company subsidiary, Dynamic Oil Trading (DOT) are currently under investigation.
In a statement OW Bunker said: “The extent of the fraud is not yet clear, but preliminary findings suggest a potential loss of around $125 million.
“For the time being, the financial impact cannot be assessed; however, it must be assumed that the group's equity is lost.”
The company says that since the fraud has been discovered it has been unable to come to an agreement with its syndicate banks.
“On this basis, it has been decided to file for commencement of in-court restructuring procedure in the subsidiaries OW Bunker & Trading and OW Supply & Trading at the probate court in Aalborg.”
It is now up to the court to decide whether there should be continued operations, before a final decision is made about the bankruptcy petition.
In other news for OW Bunker, the company said that a recent review of risk managements contracts has uncovered risk management losses. These are in addition to the loss of $24.5 million which was announced in the third quarter results in October.
“In order to reduce risk management exposure to an absolute minimum level, risk management contracts are currently being unwound,” OW Bunker said.
The company announced that its mark to market loss stands at approximately $150 million.