Legal

OW Bunker legal saga draws to a close with USD 92.9 million settlement

Danish Eastern High Court will need to formally approve the settlement and determine costs in the class action litigation before it is finalised, says private equity fund Altor.

Published

7 months ago

July 3, 2024

Admin

A group involving Danish investors has been awarded approximately 645 million DKK (USD 92.9 million) in a settlement of their linked cases involving the bankrupt OW Bunker, according to Altor on Monday (1 July).

The parties involved in the cases were private equity fund Altor, the investment banks, and both the Danish and the foreign institutional investors that bought shares in connection with and after the IPO of the company in the spring of 2014.

OW Bunker went bankrupt in November 2014 after suffering significant losses on derivatives and a loss on a subsidiary’s biggest customer in Singapore. The bankruptcy of OW Bunker led to heavy losses for both the company’s creditors and the shareholders that had invested in the company in connection with the IPO and afterwards.

ATP, PFA and 22 other Danish institutional investors brought two actions for damages in 2016 and 2017 against OW Bunker, its former management and Board of Directors, Altor Fund II and the investment banks Carnegie and Morgan Stanley.

The subject-matter of the complex and significant legal actions was prospectus liability in connection with the IPO and liability for failing to comply with the disclosure requirements in the time leading up to the bankruptcy of the company.

A number of foreign institutional investors represented by the company Deminor and an association of Danish private investors set up on the initiative of Dansk Aktionærforening brought corresponding actions for damages concerning prospectus liability against several of the same defendants.

In the settlement, the plaintiffs in the four legal actions are compensated for losses suffered on the investment in OW Bunker with an aggregate amount of approximately 645 million DKK, including costs relating to the case. By the settlement agreement the parties waive any further claims against each other relating to OW Bunker, and the legal actions between the parties before the Danish Eastern High Court will be withdrawn.

In accordance with the Danish rules on class action lawsuits, the last step in finalising the settlements is to have the Danish Eastern High Court formally approve the settlement and determine the costs in the class action litigation.

The parties are pleased with the settlement:

“We are pleased that we have reached a settlement. We brought the legal action with the primary objective of ensuring that our members receive the highest possible compensation for the loss. We have achieved that objective”, says Tomas Krüger Andersen, Head of Legal at ATP, Pensions & Investments, who continues: “The judgment from the Eastern High Court is currently not expected before 2026 after 100 days in court, and it is likely that a judgment would be appealed to the Supreme Court, adding even more years before a final judgment would be obtained. The costs of this would run into millions. It would not be in our members’ interest.”

“As investors we must be able to rely on that the listed companies that we invest our customers’ money in provide timely, full and accurate information to us and the rest of the market. It has been important for us to get this message across with the OW Bunker actions. We are satisfied that by this settlement we can close both actions in an acceptable manner”, says Rasmus Bessing, MD, ESG Investing & CO-CIO, PFA Asset Management A/S.

“No one could have predicted the events in 2014 when OW Bunker was hit by the “perfect storm” as a consequence of unexpected, huge price movements on the oil market and fraud in the subsidiary in Singapore at the same time. It is extremely unfortunate that the bankruptcy triggered such significant losses. As the selling shareholder in the process Altor Fund II has, without in any way acknowledging legal responsibility, decided to acknowledge a moral shared responsibility”, says Søren Johansen, Partner in Altor Equity Partners A/S (investment adviser to Altor Fund II).

None of the defendants have acknowledged any legal responsibility in the group of linked cases in connection with the settlement.

Photo credit: Pepi Stojanovski from Unsplash
Published: 3 July, 2024

Winding up

Singapore: Notices of intended dividend issued for Xihe Holdings subsidiaries

Creditors of the companies will have to submit proof of debt to the liquidators of Xin Chun Shipping, Xin Guang Shipping and Xin Sheng Shipping by 18 February at 5pm by email.

Published

2 days ago

February 5, 2025

Admin

Notices to declare intended dividend of Xihe Holdings Pte Ltd subsidiaries Xin Chun Shipping Pte Ltd, Xin Guang Shipping Pte Ltd and Xin Sheng Shipping Pte Ltd to their creditors have been posted on the Government Gazette on Tuesday (4 February).

According to the notices, the last day for creditors of the companies to submit proof of debt to the liquidators is at 5pm on 18 February by email to [email protected].

The following are the details of the liquidators:

Paresh Tribhovan Jotangia and Ho May Kee
c/o Grant Thornton Singapore Private Limited
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960

Photo credit: Benjamin-Child
Published: 5 February, 2025

Legal

Shell MGO bunker heist: Man sentenced to jail for hindering police investigations

Wong Wai Seng was reportedly sentenced to two months’ jail for lying to police on the whereabouts of three bunker clerks involved in the heist and relaying instructions for them to stay out of Singapore.

Published

4 days ago

February 3, 2025

Admin

A man, who was an operations executive with Singapore-based Sentek Marine & Trading (Sentek), was sentenced to two months’ jail on Friday (31 January), according to CNA.

Wong Wai Seng lied to police about the whereabouts of three bunker clerks involved in the Shell Pulau Bukom fuel heist.

Wong pleaded guilty to one charge of perverting the course of justice while four charges of abetting corruption by giving the bunker clerks bribes to remain outside of Singapore and avoid investigations were considered in sentencing.

Manifold Times previously reported three bunker clerks, previously employed by Sentek, being charged in Court for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

They were Singaporeans Wong Kuin Wah, Wong Wai Meng, and Boo Pu Wen.

It was alleged that Wai Meng, Kuin Wah and Pu Wen intentionally aided Sentek in acquiring property which was another person’s benefits from criminal conduct, by assisting to receive on board their respective vessels, gasoil which had been dishonestly misappropriated from Shell Eastern Petroleum (Pte) Ltd’s facility (Shell Pulau Bukom).

They were charged for offences under Section 47(3) of the CDSA, read with Section 109 of the Penal Code, and punishable under Section 47(6)(a) of the CDSA.

CNA reported that Wai Seng relayed instructions from Sentek’s managing director Pai Keng Pheng to the bunker clerks including instructing them to leave Singapore in January 2018. This resulted in Wai Meng, who is Wai Seng’s brother, leaving for Medan.

Wong also told Boo and Wong Kuin Wah who were on board different Sentek vessels, to not return to shore.

On Pai's instructions, Wong also told the bunker clerks to throw away their work phones, which contained messages relating to the fuel heist.

The trio remained in hiding at D'Merlion Hotel in Batam for almost three years until January 2021, when they returned to Singapore and were arrested.

Wong Wai Meng was sentenced to seven years, four months and two weeks’ jail for helping the company acquire more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million)

Meanwhile, Wong Kuin Wah was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Sora Shimazaki
Published: 3 February, 2025

Winding up

Singapore: Liquidators schedule first and final meeting for Maritime International Offshore

Meeting will be held at 10 Collyer Quay, #17-01 Ocean Financial Centre, Singapore 049315 on 25 February at 3pm (Singapore time), according to Government Gazette notice.

Published

1 week ago

January 28, 2025

Admin

The first and final meeting of Maritime International Offshore Pte Ltd, which is in liquidation, has been scheduled to take place on 25 February, according to the company’s liquidators on a notice posted on Friday (24 January) on the Government Gazette.

The meeting will be held at 10 Collyer Quay, #17-01 Ocean Financial Centre, Singapore 049315 at 3pm (Singapore time).

The agenda of the meeting is the following:

a) To receive, from the Liquidators and/or their duly authorised representative(s), a brief update on matters attended to in the Company’s winding up;
b) To approve the Liquidators’ fees and disbursements, amounting to SGD 20,740.00 (excluding GST) and SGD 899.88 (excluding GST), respectively; and
c) Any other matters relevant to the Company’s winding up.

Forms of general and special proxies are available at the Liquidators’ office. Proxies to be used at the meeting must be lodged by no later than 4pm (Singapore time) on the 24 February 2025.

Manifold Times previously reported the High Court of Singapore issuing a winding up order to Maritime International Offshore.

The winding up application was filed by India-registered IL&FS Energy Development Company Limited on 27 December 2023.

Photo credit: Drew Beamer
Published: 28 January, 2025

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OW Bunker legal saga draws to a close with USD 92.9 million settlement

Legal

OW Bunker legal saga draws to a close with USD 92.9 million settlement

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