OW Bunker has been declared bankrupt by an Aalborg probate court.
The Danish bunker supplier announced the decision after it was found that there was no sustainable solution to the company’s issues.
Chairman of the board of directors, Niels Henrik Jensen said that underlying business was eroded significantly when the credit facility was closed down on Wednesday the 5th of November.
“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.”
Plesner, John Sommer and Pernille Bigaard have been appointed as bankruptcy estate trustees.
After the bankruptcy decision was made, the company stated that it had 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”.
While the company stated that the extend of the fraud wasn’t yet clear, initial findings show a possible loss of approximately $125 million. If the fraud is proven, it will be one of Singapore's largest financial market scandals in a decade.