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Henderson Eurotrust writes down OW Bunker

HNE : Henderson Eurotrust writes down OW Bunker

Henderson Eurotrust is writing down the value of its investment in OW Bunker to zero. this was 1.13% of the portfolio at 31 October 2014. The reason for the write down says HNE is that fraud has been discovered in OW Bunker’s Singaporean subsidiary. The write down is already reflected in the net asset value they announced earlier today.

OW Bunker is a Danish marine fuel company. Its announcement is reproduced below

“The senior management of OW Bunker has today been informed about a fraud committed by senior employees in the Singapore-based subsidiary Dynamic Oil Trading (DOT). The case is under investigation. The extent of the fraud is not yet clear, but preliminary findings suggest a potential loss of around USD 125 million.

Isolated from the above, a review of OW Bunker’s risk management contracts has revealed a significant risk management loss in addition to the loss of USD 24.5 million announced on October 23, 2014 (Company Announcement 23/2014). As of today, the mark to market loss is around USD 150 million.

In order to reduce risk management exposure to an absolute minimum level, risk management contracts are currently being unwound.

Head of Risk Management and EVP Jane Dahl Christensen has as a consequence of the risk management loss been dismissed with immediate effect.

The above events affects OW Bunker’s operations and credit facilities. OW Bunker is currently in discussions with the syndicate banks. OW Bunker will inform the market further as soon as possible.”

 

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