Large Danish investors led by pension funds prepare to settle in OW Bunker case

Several large Danish investors led by pension funds are prepared to settle with the possibility of a year-long legal battle after the crash of OW Bunker, according to ShippingWatch on Wednesday (28 February).

Eventhough the settlement is not yet signed and in place, ShippingWatch has been given access to the settlement text dated January 25, 2024 and a draft press release.

According to the text, pension funds ATP, PFA and 22 other institutional investors are willing to settle the claims against the banks Carnegie, Morgan Stanley, the private equity fund Altor, the OW Bunker company and the former management and board of directors with a total amount of DKK 665 million (USD 96,697,729.80).

This includes costs related to the case, according to the draft press release.

The pension funds had sued the parties with allegations of an erroneous and misleading prospectus.

The settlement amount will be significantly lower than the original claim from the pension funds.

In two lawsuits in 2016 and 2017, they claimed a total of DKK 833 million in compensation for the losses that the investors suffered when OW Bunker was listed on the stock exchange in 2014 by its owner, the private equity fund Altor.

In reality, the DKK 833 million, including interest, would have grown to more than DKK 1.3bn after the first six years after the summons, ShippingWatch has previously reported.

Related: Malaysia: Update on ING Bank, O.W. Bunker legal suit against bunkering firm TMD
Related: O.W. Bunker USA and affiliate O.W. Bunker North America reaches USD 23.5 million settlement with creditors

Photo credit: Pepi Stojanovski from Unsplash
Published: 4 March, 2024