OW Bunker investors add two banks as prospectus liability defendants

By Caroline Salls

Pittsburgh, Sept. 12 - A consortium of 24 Danish OW Bunker A/S institutional investors issued a writ against issuing banks Morgan Stanley and Carnegie as part of a prospectus liability action, according to a release from institutional investor ATP.

The decision to issue this writ extends the group of defendants in the action for Kr. 767 million in damages against OW Bunker, relevant Altor units and the former board of directors and day-to-day management of OW Bunker.

“This decision is based on new information in extensive exhibits from the bankruptcy estate, which we were given access to only this spring,” ATP head of legal Tomas Kruger Andersen said in the release.

“We believe that the banks knew about OW Bunker’s speculative activities and that the banks contributed to misleading investors. Against this background, we believe that they may be liable to pay damages.”

ATP said the Danish institutional investors suffered a loss of Kr. 767 million following their investment in shares in OW Bunker on the basis of a prospectus that was “insufficient in material aspects.”

According to the release, in December 2014, a number of Danish institutional investors launched an investigation into OW Bunker’s bankruptcy with the purpose of determining whether there was a basis for claiming legal liability.

ATP said the investigation focused on errors and deficiencies in the prospectus prepared in connection with the initial public offering of OW Bunker, liability in connection with the offer and sale of shares in OW Bunker and management liability in connection with the operation of OW Bunker.

Based on the conclusions of the investigation, ATP said the Danish institutional investors brought legal proceedings in April 2016 with a goal of obtaining compensation and determining responsibility.

The action is pending before the Danish Eastern High Court.

The institutional investors also reserved the right to continue to involve additional parties or bring new actions.

Bruun & Hjejle represents the investors in the proceedings.

OW Bunker is an independent distributor and reseller of marine fuel and is based in Denmark.

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