An agent for a group of lenders has appointed PricewaterhouseCoopers (PwC) as receiver for pledged assets of scandal-hit OW Bunker Group.
ING Bank, a security agent for a syndicate of lenders to OW Bunker Group, appointed three PwC London staff as joint receivers of pledged assets including receivables on Nov 12, PwC said yesterday.
One of them, Mr Paul David Copley, a PwC UK partner, said: "OW Bunker's collapse was sudden and unexpected for all stakeholders, including its lenders. We have been appointed as receivers to collect assets which were assigned and charged to ING as part of the group's refinancing in late 2013."
"These assets are principally receivables owed by customers and affiliates to certain OW Bunker entities," he said.
Mr Goh Thien Phong and Mr Chan Kheng Tek of PwC in Singapore were also appointed receivers to recover the assets on behalf of ING Bank.
The pledged assets assigned to ING Bank include "all rights, title and interest in its third party and intercompany receivables, both current and future of both OW Bunker Far East and Dynamic Oil Trading," a PwC spokesman told The Straits Times.
These are debts arising from sales to customers and group companies.
PwC said it is in the process of determining the size of debts owed.
The receivers are also working with KPMG, the provisional liquidators appointed by OW Bunker Far East on Nov 13, and Dynamic Oil on Nov 18, in the collection process. The Straits Times understands the receivers are in charge of the pledged assets, while the liquidators are in charge of the remaining assets.
"As part of our role, we will need to work with the group's bankruptcy trustees in Denmark and other insolvency office-holders around the world," Mr Copley said. "However, we are aware that some suppliers of the group are threatening its customers and in a few cases have started recovery proceedings and arrested ships. We take this very seriously," he said.
"If suppliers interfere with lenders' receivables or induce customers to breach their contracts, we reserve the right to pursue them directly for damages associated with their actions. For customers, they will not get a valid discharge from their debt to ING by paying an OW Bunker supplier and we will continue to pursue them."
Oil firms have stepped up legal action against OW Bunker's Singapore units since its bankruptcy filing in Denmark on Nov 7 with the arrest of ships, now totalling seven, according to Reuters.
Six vessels - Star Quest, Petro Asia, Luna, Nepamora, Zmaga and Arowana Milan - were arrested in the city-state over Nov 15-17 by Rajah & Tann Singapore, which earlier this month also arrested ship fuel delivery barge Laguna, Reuters said.
However, Mr Copley, said: "At this stage, though, we remain optimistic that suppliers and customers will work with us constructively and appropriately and that we will be able to complete our task without undue delay."
Creditors of OW Bunker Far East and Dynamic Oil Trading have filed claims totalling US$38.8 million (S$50.5 million) against the companies since OW Bunker's bankruptcy, Reuters and Bloomberg say. OW Bunker went bust after its banks refused to extend credit following revelations of a US$125 million fraud at Dynamic Oil and a US$150 million risk management loss. The company has blamed fraud by two senior employees for the losses at Dynamic Oil.
OW Bunker has reportedly run up about US$1.5 billion in debts globally because of this.
Of this amount, OW Bunker owes banks, pension funds and other institutional financers an estimated US$750 million; it is estimated that it owes another US$730 million to around 150 trading counterparties for outstanding fuel bills, Reuters said.
INAPPROPRIATE ACTION We are aware that some suppliers of the group are threatening its customers and in a few cases have started recovery proceedings and arrested ships. We take this very seriously. If suppliers interfere with lenders' receivables or induce customers to breach their contracts, we reserve the right to pursue them directly for damages associated with their actions. - Mr Paul David Copley, joint receiver and PwC UK partner
This article was first published on November 22, 2014.
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