OW Bunker U.S. units in Chapter 11 bankruptcy in light of Danish case

By Caroline Salls

Pittsburgh, Nov. 13 – O.W. Bunker Holding North America Inc. and two other O.W. Bunker & Trading A/S U.S. subsidiaries filed Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the District of Connecticut.

The companies’ boards of directors decided restructuring proceedings would be in the best interest of the companies and their creditors and stockholders in light of the Danish bankruptcy proceedings filed by parent entities O.W. Bunker & Trading and O.W. Supply & Trading A/S, according to court documents.

As previously reported, OW Bunker A/S filed for bankruptcy in the probate court in Aalborg, Denmark, last week after its board of directors and management were unable to find a sustainable solution.

Before that filing, the company had announced in-court restructuring proceedings for its O.W. Bunker & Trading and O.W. Supply & Trading subsidiaries.

According to court documents, O.W. Bunker has $10 million to $50 million in assets and $50 million to $100 million in debt.

The company’s largest unsecured creditors are:

• NuStar Energy LP, based in San Antonio, with a $20.57 million trade debt claim;

• Phillips 66 Co. of Houston, with a $12.88 million trade debt claim;

• Tesoro Marine Services of Auburn, Wyo., with a $2.2 million trade debt claim;

• Bomin Bunker Oil Corp. of Houston, with a $1.35 million trade debt claim;

• Global Cos. LLC of Waltham, Mass., with a $1.29 million trade debt claim;

• Cepsa (Panama) SA of Panama City, Panama, with a $1.21 million trade debt claim;

• Pacrim Petroleum Inc. of Incline Village, Nev., with a $1.2 million trade debt claim;

• Martin Energy Services LLC of Houston, with a $1.18 million trade debt claim;

• Chevron Marine Products of San Ramon, Calif., with a $1.1 million trade debt claim; and

• O’Rourke Marine Services of Houston, with a $1.09 million trade debt claim.

The U.S. subsidiaries are represented by Montgomery, McCracken, Walker & Rhoads, LLP and Robinson & Cole LLP, and Alvarez & Marsal is serving as financial adviser.

OW Bunker is an independent distributor and reseller of marine fuel and is based in Denmark. The U.S. subsidiaries’ Chapter 11 case number is 14-51720.

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