Danish Investors Summon OW Bunker Parties to Court over Bankruptcy

A group of 26 institutional investors has issued a summons against bankrupt Danish ship fuel supplier OW Bunker in the latest stage of a legal campaign for allegedly misleading them in its 2014 initial public offer (IPO).

 

The investors had said last year they would sue Bunker, private equity fund Altor and the company's board over their responsibility for the company's flotation prospectus, after the company filed for bankruptcy just months after listing.

 

The investors, which include two of the largest pension funds in Denmark, ATP and PFA, have now subpoenaed those parties to appear in court in their attempt to claim 769 million Danish crowns ($118 million), reflecting the money which they say they lost in the float.

 

Calls to the lawyer representing former Bunker chief Jim Pedersen went unanswered outside regular Danish business hours. No-one at Altor could be reached for comment.

 

The company, which had been valued at $1 billion when it floated at the end of March 2014, came to grief in November the same year after suffering hedging losses of almost $300 million.

 

The lawsuit was filed at Copenhagen's city court.

 

"It is of utmost importance to get this unfortunate case fully disclosed, and place responsibility for the events surrounding OW Bunker's IPO and bankruptcy," said PFA Asset Management Executive Director Rasmus Bessing.

 

A second suit was filed simultaneously by five of the investors against OW Bunker, the former chairman, deputy and management, alleging a lack of compliance with formal exchange disclosures.