Bankruptcy and unpaid bunkers – a global dilemma for shipping

Adrian Moylan, of Gard, reports on the collapse of the Danish OW Bunker group

The collapse of the Danish OW Bunker group (OW), a global marine fuel supplier, led to the frenzied arrest of vessels and multiple competing claims. This was just the most recent illustration of the need for and effective global procedure for co-ordinated handling of creditors’ claims in bankruptcy. Co-ordination, even on an interim basis, between ship owners’ associations, banks, physical suppliers and liquidators must be preferable to the current turmoil where every party is reaching for his lawyer’s telephone number. This article will look at some of the issues making for this less than satisfactory state of affairs, and what the industry might consider by way of alternatives.