OW Bunker files for bankruptcy
On November 6 2014 OW Bunker announced that the two subsidiaries of OW Bunker; O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S filed for restructuring. Altor Fund II, the majority shareholder of the company with 35 % of the shares, immediately provided funds to enable the restructuring analysis but today, November 7 2014, the company nonetheless had to file for bankruptcy as no viable solution could be found.
We are devastated, says Søren Johansen, Partner at Altor Equity Partners and Board Member of OW Bunker. This is a huge tragedy for all employees, shareholders and customers. The board has turned every stone in order to save the company but has not been able to find a viable solution. In an extreme situation like this it is in all stakeholders interest to get full clarity of the events leading to this enormous loss of value. As soon as the necessary facts and conclusions are available they must be put on the table.
On November 7 2014 at 19:02 CET OW Bunker published the following announcement:
OW BUNKER FILES FOR BANKRUPTCY
Following the announcement on November 6, 2014 (company announcement 26/2014) regarding in-court restructuring procedures in the subsidiaries O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S at the probate court in Aalborg, the board of directors and management deeply regret to inform that it has not been possible to find a sustainable solution. As a consequence, OW Bunker A/S, O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S file for bankruptcy.
As a result of the internal investigation it has been decided to report two key employees in the Singapore-based subsidiary Dynamic Oil Trading (DOT) to the police pursuant to section 299 of the Danish penal code and to relieve them of duty immediately.
Chairman of the Board of Directors, Niels Henrik Jensen said:
"Since the credit facility was closed down on Wednesday, the underlying business has eroded significantly. The banks hold mortgage over all receivables and consequently, without the provision of new, significant credit facilities in the immediate future, it is not possible to save the remaining business. It is now clear that such facilities will not be made available. Nor is a sale as going concern a realistic option. We are therefore left with no option but to file for bankruptcy. On behalf of the entire board of directors and management, we deeply regret this outcome and the consequences affecting the company, its employees, shareholders and business partners."
The actual bankruptcy will be filed as soon as possible to the probate court in Aalborg.
For more information, please contact:
Tor Krusell, Head of Communications Altor Equity Partners +46 70 543 87 47
Søren Johansen, Partner Altor Equity Partners +46 730 799 140
Since inception, the family of Altor funds have raised some EUR 5,8 billion in total commitments. The funds have invested in excess of EUR 3.1 billion in more than 40 companies. The investments have been made in medium sized Nordic companies with the aim to create value through growth initiatives and operational improvements. Among current and past investments are Apotek Hjärtat, Carnegie, EWOS, Wrist Group, Helly Hansen, Dustin and Byggmax