• Follow Us On Our Preferred Social Media Platform:

Integr8 Fuels seeks to offset earlier O.W. Bunker transaction in 2014

06 Jan 2019

International bunkering firm Integr8 Fuels, a subsidiary of Navig8 Group, on Thursday (3 January) submitted a petition to a U.S. court seeking the confirmation of an arbitration award in regards to two earlier bunker transactions conducted in 2014, according to documents obtained by Manifold Times.

On October 7 2014, Integr8 contracted with O.W. Bunker Panama S.A. (OWP) to arrange for the supply of marine fuel to the M/V As Suwayq at Galveston Light; after the fuel was supplied to the vessel, OWP invoiced Integr8 US $1,928,001.14.

On October 14 2014, Dynamic Oil Trading (Singapore) Pte. Ltd. (DOT) contracted Integr8 for the arrangement of marine fuel to the M/V Dl Navig8 in Hong Kong; after the fuel was supplied to the vessel, Integr8 invoiced DOT US $600,395.53.

“OWP and DOT were part of the O.W. Bunker group of companies, which became insolvent in November of 2014 and immediately ceased all business operations. With the resulting uncertainty, neither of the aforementioned invoices were paid,” stated the document.

DOT’s purchase of fuel from Integr8 for the M/V Dl Navig8 was subject to Integr8’s general terms and conditions, specifically Clause 5.4., it adds.

Clause 5.4 states whenever the financial condition of one buying fuel pursuant to the GTC’s or that of the Buyer’s “subsidiary, parent, associate, related or affiliated company” becomes “impaired,” Integr8, as Seller, may accelerate the Buyer’s payment obligations and may “offset such accelerated payment obligations of the Buyer against any debts due to the Buyer or its subsidiary, parent, associate, related or affiliate company.”

As such, arbitrators representing Integr8 concluded the company was entitled to setoff the US $600,395.53 DOT owed for fuel supplied to the M/V Dl Navig8 against the US $1,928,001.14 Integr8 owed OWP for M/V As Suwayq.

The petition has been received by U.S. District Judge Vernon S. Broderick on Friday (4 January) and said proceedings to confirm or to vacate arbitration awards must be “treated as akin to a motion for summary judgment.”

He instructed Integr8 lawyers to file and serve any additional materials to support the petition for confirmation by 31 January, 2019 while awaiting a reply from O.W. Bunker’s legal representatives by 27 February, 2019. Any further replies to O.W. Bunker’s legal representatives, if any, will be due on 13 March, 2019.

Published: 7 January, 2019

Related News

Featured News

Our Industry Partners

  • argus

PR Newswire