OW Bunker

OW Bunker is a Danish marine fuel bunker company. On 20 March 2014, the company’s shares were introduced on the Copenhagen NASDAQ OMX exchange. On 7 November 2014, less than 8 months after its IPO, the company filed for insolvency, resulting in steep losses for its shareholders.

According to OW Bunker, its demise was primarily caused by huge losses arising from a serious fraud conducted by its Singapore-based subsidiary Dynamic Oil Trading as well as certain problems with its internal risk management. However, Deminor’s investigation has resulted in the discovery of multiple serious irregularities in the period leading up to OW Bunker’s IPO, as well as during and after the IPO.

Upon discovery of these irregularities, Deminor proposed that the investors affected by OW Bunker’s insolvency seek recovery for the losses they suffered on their investments in OW Bunker in court.

In early October 2017 an action for damages was filed with the Danish courts on behalf of 21 institutional investors, represented by Deminor.

The defendants in the action are investment banks Morgan Stanley and Carnegie. In addition, our clients have reserved their rights to initiate future actions towards a large group of other parties involved in the circumstances surrounding the OW Bunker case. The total loss that our clients have suffered amounts to approximately EUR 70 million in Europe.

While proceedings remain ongoing, a conditional settlement was announced on 1 July 2024 with Deminor’s clients, a number of Danish institutional investors and an association of Danish private investors that brought corresponding actions for damages. Under the settlement agreement the parties waive any further claims against each other relating to OW Bunker and the legal actions will be withdrawn. The plaintiffs in the four legal actions will in exchange be compensated for the losses that they suffered on their investments in OW Bunker with an aggregate amount of approximately 645 million DKK. All our clients have accepted the conditional settlement.

For the conditional settlement to become final, it is required that the Danish High Court approves the settlement of association of Danish private investors. This process is ongoing and is expected to be concluded shortly.