More Legal Woes for Bankrupt OW Bunker
A group of 27 Danish institutional investors say they will launch a legal action against the former management of OW Bunker, a shipping company that filed for bankruptcy last year just six months after listing, and the private equity firm that brought the company to market.
The Danish investors including two of the largest pension funds in Denmark, ATP and PFA, with assets of more than $165 billion have sued OW Bunker for 800 million Danish crowns ($120 million).
The first case is against OW Bunker, its management and its owner, private-equity company Altor Funds. The second case claims that OW Bunker failed to disclose information at the appropriate time, in accordance stock exchange rules.
OW Bunker, which had been valued at $1bn when it floated at the end of March 2014, revealed it was facing a bankruptcy declaration in November after suffering hedging losses of almost $300m. Its share price fell more than 50 per cent before trading was suspended.
