Connect with us

Legal

Former Aegean Directors and Officers face $300 million lawsuit

Defendants allegedly neglected duties, leaving Aegean’s former CEO, Dimitris Melisanidis, free to defraud firm.

Admin

Published

on

5d882f9876c25 1569206168

The former Directors and Officers of the now defunct Aegean Marine Petroleum Network Inc. are facing a lawsuit exceeding US $300 million at the United States District Court for the Southern District of New York over alleged misconduct.

A complaint has been filed by a Trustee of the Aegean Litigation Trust representing several creditors against E. Nikolas Tavlarios, Peter C. Georgiopoulos, John P. Tavlarios, and George Konomos on 12 September at the U.S. court.

“Defendants, former directors and officers of Aegean, had duties to oversee Aegean’s business, including duties of care, loyalty, and good faith that required monitoring its systems of internal control, insider transactions, and financial dealings,” stated the complaint seen by Manifold Times.

“However, Defendants knowingly abdicated these duties, leaving Aegean’s former CEO, Dimitris Melisanidis, free to defraud Aegean and manipulate its finances without any monitoring, oversight, or scrutiny.

“In bad faith dereliction and breach of their duties, Defendants turned their heads as Melisanidis essentially had his way with the Company and rendered it hopelessly insolvent.”

The document claimed Melisanidis ultimately misappropriated over $300 million from Aegean by 2018.

Melisanidis first led Aegean to engage in a “sham consulting contract” with OilTank Engineering and Consulting, Ltd (OilTank), an entity owned by him, which resulted in amounts totalling between $68 million and $126 million paid for consulting services in an over budgeted construction project.

He later transferred approximately $186 million between Aegean and OilTank or other firms controlled by himself after construction was completed.

Melisanidis further engineered a massive accounting fraud whereby Aegean accumulated $200 million in fake accounts receivable between 2015 and 2017 from sham entities affiliated with his associates.

He also purported to sell his approximately 22% stake in Aegean for approximately $100 million, where the company never actually paid for the shares.

“Defendants were officers or directors of Aegean during each of these events — all of which resulted from Defendants’ failure to monitor Aegean’s systems of internal control, insider transactions, and financial dealings,” continued the complaint.

“Defendants were all aware of numerous irregularities and other red flags during their tenure, yet they did nothing to prevent Melisanidis from using his position to denude the Company of value.

“In addition, Defendants knew of Melisanidis’s sordid background, including his extensive criminal history for fraud related conduct, his suspect business practices, and his propensity for physical violence.

“But as beneficiaries of Melisanidis’s corporate largesse at Aegean’s expense, Defendants were motivated to utterly disregard their fiduciary duties in order to remain in Melisanidis’s good graces and continue their symbiotic relationship with him.”

The complaint further explained a new group of investors who were appointed independent board members at Aegean later found Melisanidis and his affiliates misappropriating over $300 million from Aegean after completing a 2018 Audit Committee Investigation.

“The new independent directors did not have more or different authority or investigative powers than Defendants,” said the complaint.

“Had Defendants earlier sought to protect Aegean from Melisanidis as the independent directors later did, they could have prevented Melisanidis’s company-destroying wrongdoing.

“These revelations ultimately led Aegean to file bankruptcy days later on November 6, 2018. Now the Trustee, on behalf of the Aegean Litigation Trust, brings this lawsuit to recover the hundreds of millions of dollars in damages caused by Defendants’ breaches of fiduciary duty.”

The original version of the complaint can be read here.

A timeline organised list of events preceding the current development have been recorded by Manifold Times below:

Related: Minerva Bunkering appoints Tyler Baron as Chief Executive Officer
RelatedAegean Marine Petroleum Network reorganises as Minerva Bunkering
RelatedAegean: U.S. Bankruptcy Court clears Mercuria Energy take over
RelatedAegean: Bankruptcy Court approves disclosure statement, procedures
RelatedAegean: ‘Significant milestones’ achieved in restructuring progress
RelatedAegean Chapter 11: Judge authorises restructuring activity to start
RelatedAegean Chapter 11: Mercuria counters Oaktree/Hartree proposal plan
RelatedAegean Chapter 11: Bondholders object Mercuria’s $532 million DIP Facility
RelatedAegean Chapter 11: Creditor list shows exposure of 30 parties
RelatedAegean files for Chapter 11, Mercuria to be ‘stalking horse bidder’
RelatedAegean auditors alleges up to $300 million ‘misappropriated’
RelatedAegean: Forensic auditors target investigations on four companies
RelatedPresident of Aegean to leave, effective November 15
RelatedRumours: Alleged changes at Aegean’s management
RelatedMercuria starts ‘sole lender’ arrangement with Aegean
RelatedAegean establishes new management committee
RelatedMercuria bails Aegean out with $1 billion credit
RelatedOcean Intelligence comments on Aegean credit downgrade
RelatedAegean shares down 71%, to face legal investigations
RelatedAegean audit uncovers $200 million account discrepancy
RelatedAegean unfolds several business developments
RelatedAegean drops founder, elects new board members
RelatedAegean requests for ‘additional time’ to file annual report
RelatedAegean welcomes new Chief Financial Officer
RelatedLawsuit filed against Aegean’s H.E.C. acquisition
RelatedAegean to offer ‘one-stop-shop solution’ with H.E.C. acquisition
RelatedAegean in $367 million acquisition of port reception facilities services group
RelatedAegean shareholders ‘gravely concerned’ over board’s silence
RelatedShareholders nominate ‘highly qualified’ candidates to Aegean board
RelatedAegean Marine Petroleum Network under shareholder pressure

Published: 23 September, 2019
 

Continue Reading

Winding up

Singapore: Notice of first and final dividend issued for East Marine Pte Ltd

First and final dividend to preferential creditors of East Marine is payable from 25 April through interbank transfer, reads notice in the Government Gazette.

Admin

Published

on

By

steve pb from Pixabay

A notice was published in the Government Gazette on Friday (25 April), regarding the first and final dividend to preferential creditors of East Marine Pte Ltd.

The following are details of the notice of dividend of the company:

Name of Company : East Marine Pte Ltd (In Creditors’ Voluntary Liquidation)
Singapore UEN : 198601345E
Address of Registered Office : 8 Wilkie Road #03-08 Wilkie Edge, Singapore 228095
Amount per centum : 100.00 per centum of all admitted preferential claims pursuant to Section 203(1)(d), (e), (g) and (h) of the Insolvency, Restructuring and Dissolution Act 2018
First and final or otherwise : First and final
When payable : 25 April 2025 onwards
Where payable : Interbank transfer (all bank charges shall be borne by the recipient of the preferential dividend payment)

Related: Singapore: East Marine Pte Ltd to be wound up voluntarily

 

Photo credit: steve pb from Pixabay
Published: 29 April, 2025

Continue Reading

Winding up

Singapore: Liquidator schedules final meeting for Kukuh Shipping Pte Ltd

Final meeting of members of the company will be held at 9 Raffles Place, #19-20 Republic Plaza Tower 2, Singapore 048619 on 26 May at 10 am, according to Government Gazette notice.

Admin

Published

on

By

RESIZED Jo_Johnston from Pixabay

The final meeting of members for Kukuh Shipping Pte Ltd, has been scheduled to take place on 26 May, according to the company’s liquidator on a notice posted on Friday (25 April) on the Government Gazette.

The meeting will be held at 9 Raffles Place, #19-20 Republic Plaza Tower 2, Singapore 048619 at 10 am. 

It is being held for the purpose of receiving an account from the liquidator showing the manner in which the winding-up has been conducted and of hearing any explanation that may be given by the liquidator. 

According to SGPBusiness, a business directory for companies registered in Singapore, the company's principal activity is in shipping, including chartering of ships and boats with crews.

The details of the liquidator are as follows:

Cheng Sam Tai Catherine
Liquidator
c/o Crowe Horwath First Trust Corporate Advisory Pte. Ltd.
9 Raffles Place, #19-20 Republic Plaza Tower 2, Singapore 048619

 

Photo credit: Jo_Johnston from Pixabay
Published: 28 April, 2025

Continue Reading

Winding up

Final meeting scheduled for Diamond S Management (Singapore) Pte Ltd

Meeting will be held at 9.30am on 29 May by electronic means via a Zoom meeting to hear any explanation that may be given by the liquidator, according to Government Gazette notice.

Admin

Published

on

By

RESIZED Drew Beamer

The final meeting of Diamond S Management (Singapore) Pte Ltd, has been scheduled to take place on 29 May, according to the company’s liquidators on a notice posted on Wednesday (16 October) on the Government Gazette.

The meeting will be held at 9.30am by way of electronic means via a Zoom meeting. It is being held for the purpose of the members to receive and consider the Liquidators’ Statement of Accounts, showing how the winding-up has been conducted and the property of the company has been disposed of and to receive an explanation thereof.

The liquidators of the company are Mona Low Sok Lee and Teo Chai Choo.

According to SGPBusiness, a business directory for companies registered in Singapore, and The Grid, B2B Sales Intelligence platform, the company’s principal activity is ship management services. 

Note: Any member entitled to attend and vote at the meeting is entitled to appoint a proxy or corporate representative to attend and vote on his behalf. A proxy or corporate representative need not be a member. The instrument appointing a proxy or corporate representative must be deposited at the Registered Office of the Company at 4 Shenton Way, #04-01 SGX Centre 2, Singapore 068807 not less than seventy-two hours before the time set for holding of the Meeting.

 

Photo credit: Drew Beamer
Published: 28 April, 2025

Continue Reading
Advertisement
  • Aderco Manifold Website Advert EN
  • Consort advertisement v2
  • EMF banner 400x330 slogan
  • v4Helmsman Gif Banner 01
  • RE 05 Lighthouse GIF
  • SBF2
  • Sea Trader & Sea Splendor
  • Zhoushan Bunker

OUR INDUSTRY PARTNERS

  • HL 2022 adv v1
  • Singfar advertisement final
  • Triton Bunkering advertisement v2
  • MFT 25 01 E Marine Logo Animation
  • SEAOIL 3+5 GIF


  • Golden Island logo square
  • PSP Marine logo
  • NW Logo advertisement
  • ElbOil logo
  • Mokara Final
  • Central Star logo
  • Auramarine 01
  • Victory Logo
  • pro liquid
  • Cathay Marine Fuel Oil Trading logo
  • Advert Shipping Manifold resized1
  • VPS 2021 advertisement
  • LabTechnic

Trending