Bankrupt OW Bunker’s Singapore arm to meet with liquidator on 4 Dec

As six more vessels are arrested.

The Singapore arm of bankrupt Danish shipping fuel trader OW Bunker will meet with its liquidator KPMG in early December to discuss the firm's outstanding debt, which totals almost $1.5 billion globally.

According to a report by Reuters, OW Bunker, a leading supplier of marine fuel oil known as "bunker", filed for bankruptcy in Denmark earlier this month after it revealed losses of at least $125 million at one of its Singapore-based subsidiaries Dynamic Oil Trading, sending the bunker fuel market into turmoil.

Reuters adds that oil firms have stepped up legal action against OW Bunker's Singapore units since the announcement with the arrest of ships, now totalling seven, Singapore court documents show.

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 LLP, which earlier this month also arrested ship fuel delivery barge Laguna.

The law firm made the latest six arrests on behalf of Phillips 66 International Trading Pte Ltd, a court official said. Phillips 66 could not be reached for comment.

A meeting between OW Bunker Far East and KPMG will take place on Dec. 4 in Singapore to wind down the unit and receive a list of creditors and an estimated amount of their claims, a letter signed by the Danish firm's board of directors and seen by Reuters said.

View the full report here.