The bankers decided to not give OW Bunker more money, after the announcement yesterday
of extensive losses due to fraud and mismanagement.
They will file bankruptcy. This is only 8 months after their IPO.
OW Bunker (OW) A/S, a Danish shipping fuel provider that went public in March, has declared bankruptcy and reported two employees at its Singapore unit to the police following allegations of fraud.
“The board of directors and management deeply regret to inform that it has not been possible to find a sustainable solution,” the company said late yesterday in a statement. As a consequence, OW Bunker A/S, O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S will file for bankruptcy, it said.
OW Bunker said Wednesday shortly before midnight it had lost $275 million through a combination of fraud committed by senior executives at its Singapore office and poor risk management. Trading in its shares was suspended on Nov. 5 and the company said its banks had refused to provide more credit. Just eight months ago, investors drove OW Bunker’s shares up 21 percent in their first day of trading, following an initial public offering that valued it at almost $1 billion.
Police in Denmark are still trying to establish the jurisdiction of the case and whether fraud was actually committed, Inspector Michael Kjeldgaard said yesterday by phone. His office wasn’t aware of any case having been filed with police in Singapore, he said.