UAE-based oil and bunkering firm GP Global is looking to sell part of its assets in an effort to repay creditors after attempts to find a buyer for its trading units remained unsuccessful, reports Bloomberg.
The restructuring team is allegedly considering multiple offers for various parts of the business and a proposal is rumoured to be presented by this month.
The firm is one of the largest bunker fuel suppliers in the Middle East bunkering hub of Fujairah and has been forced into the restructuring after it failed to win backing from some of its creditors following internal fraud investigations and the crash in the commodities market, leaving it short of cash.
GP Global’s assets include bunkering terminals at Hamriyah and Fujairah, UAE. It has 412,000m³ (2.6mn bl) of storage capacity in Fujairah and 204,000m³ at Hamriyah.
It also owns a 7,600 b/d refinery in Sharjah that produces naphtha, gasoil and fuel oil and is a major supplier of bitumen to the Indian market. Its other operations include oil trading, lubricants, and steel, minerals and agricultural trading.
Related: GP Global tanker ‘GP B3’ detained in India due to loan defaults with creditors
Related: Argus Media: GP Global clarifies that it has shut only lesser performing trading desks
Related: Argus Media: GP Global rules out asset sales in restructuring
Related: GP Global engages restructuring specialists following credit pull and internal fraud
Related: GP Global internal investigations reveal Sharjah and Fujairah staff involved with fraud
Related: GP Global repudiates rumours and proceeds with restructuring as strategic move
Photo credit: GP Global
Published: 16 September, 2020
Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.
Bunker orders of ISO 8217:2010 spec LS 380 cSt 0.5% for Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern were placed through global commodities trading and logistics house Trafigura Pte Ltd.
While Covid-19 concerns are important, Captain Rahul Choudhuri was quick to note this does not mean bunker fuel related issues have indeed disappeared from the shipping sector.
‘Therefore, representing the players of the Malaysian bunker industry, we sincerely hope that this matter can be refined and reconsidered immediately so that all parties benefit together,’ says communication.
Maureen Poh, a Director of Helmsman LLC, offers plain practical tips on the differences between US and EU Sanctions and shares some thoughts on what companies could do if they are potentially exposed to sanctioned entities.
‘We [Consort Bunkers] have the opinion that the bunker business in Singapore is not related to the widely reported earlier cargo commodity trading mishaps,’ company source tells Manifold Times.