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O.W. Bunker USA and affiliate O.W. Bunker North America reaches USD 23.5 million settlement with creditors

17 May 2022

The United States Bankruptcy Court on Wednesday (11 May) issued its final decree and order against the Chapter 11 cases of O.W. Bunker Holding North America Inc. and O.W. Bunker USA Inc., instructing both firms to make final distributions to creditors.

“When final distributions are made, OW Bunker USA and its affiliate OW Bunker North America will have distributed about $23.5 million to their creditors,” said Robert O’Connor, Partner at Montgomery McCracken Walker & Rhoads LLP.

Both O.W. Bunker Holding North America and O.W. Bunker USA are subsidiaries of O.W. Bunker, a firm based at Nørresundby, Denmark which was once the world’s largest bunkering firm until its collapse on 7 November 2014.

Infamously, O.W. Bunker went from initial public offering (IPO) to bankruptcy in less than a year, leaving a trail of creditors.

A total of 180 creditors have sought to seek claims from O.W. Bunker USA, according to the court creditor list document (filed: 13 November 2014) seen by Singapore bunkering publication Manifold Times.

The U.S. Claims Register Summary recorded a total USD 833,143,296.60 claims against O.W. Bunker USA; amongst claimants were:

  • Internal Revenue Service, Amount claimed: USD 393,896.81
  • Phillips 66 Company, Amount claimed: USD 1,405,385.37
  • J.A.M., Amount claimed: USD 64,466.34
  • American Express Travel Related Services, Amount claimed: USD 17,193.55
  • NuStar Energy Services, Inc., Amount claimed: USD 15,906,510.33
  • NuStar Terminals Marine Services N.V., Amount claimed: USD 2,456,997.27
  • Martin Energy Services LLC, Amount claimed: USD 1,243,380.36
  • ING CB/CSD Lending Ser.Ops,NL, Amount claimed: USD 86,602,015.00
  • Chevron Marine Products LLC, Amount claimed: USD 1,107,100.78
  • ING Bank N.V., as Security Agent, Amount claimed: USD 700,000,000.00
  • O’Rourke Marine Services, Amount claimed: USD 126,8641.31
  • Dolphin Marine Fuels LLC, Amount claimed: USD 87,165.30
  • Atlantic Gulf Bunkering, Amount claimed: USD 348,477.12
  • Bomin Bunker Oil Corporation, Amount claimed: USD 1,350,867.01
  • O.W. Bunker North America Inc., Amount claimed: USD 20,889,063.76

The High Court of Denmark in June 2018 issued Lars Moller, the former CEO of O.W. Bunker subsidiary firm Dynamic Oil Trading (DOT), an increased five-year prison sentence.

Moller was guilty of issuing credit which significantly exceeded the approved limit of USD 10 million for DOT to the tune of approximately USD 90.2 million, eventually leading to the bankruptcy of O.W. Bunker in 2014.

Related: Dynamic Oil Trading liquidators publish notice of dividend to unsecured creditors
Related: Dynamic Oil Trading liquidators plan to declare interim dividend to unsecured creditors
Related: Danish Board of Auditors issue DKK 200,000 fine to O.W. Bunker auditors from Deloitte
Related: Singapore: O.W. Bunker A/S stakeholders take Deloitte & Touche LLP to court over alleged negligence
Related: OW Bunker: High Court explains reviewed judgement of Lars Moller
Related: OW Bunker: Public Prosecutor planning to review judgement
Related: OW Bunker: Judgement to be appealed
Related: OW Bunker verdict: Prison sentence for Lars Moller
Related: OW Bunker: Verdict to be out on Wednesday
Related: Dynamic Oil trial: Lars Moller provides testimony
Related: All eyes on Dynamic Oil criminal trial at Denmark
Related: Dynamic Oil criminal trial set to begin in April
Related: Holland & Knight discusses OW Bunker aftermath

 

Photo credit: Manifold Times
Published: 17 May, 2022

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