O.W. Bunker creditors ask permission to convert cases to Chapter 7

By Mark Reccek

Bethlehem, Pa., Oct. 5 – O.W. Bunker Holding North America, Inc.’s creditors NuStar Energy Services, Inc., NuStar Supply & Trading LLC and NuStar Terminals Marine Services NV requested court approval to convert the cases to Chapter 7 from Chapter 11, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Connecticut.

According to the motion, the creditors argue the case conversion is warranted as O.W. Bunker has not proposed a confirmable plan. The creditors also said O.W. Bunker has engaged in wasteful venue litigation, while professional expenses have exceeded $5 million.

“The mounting professional fees and administrative expenses show that there is a substantial or continuing loss to or diminution of the estate, and the inability to pay the administrative expenses shows the absence of a reasonable likelihood of rehabilitation,” the motion said. “Furthermore, it is in the best interests of the estate and the creditors that the cases be converted to Chapter 7 cases. There is no reason to continue paying salaries of debtor employees in a business that has not operated in almost a year.”

O.W. Bunker is an independent distributor and reseller of marine fuel and is based in Denmark. Its U.S. subsidiaries filed for bankruptcy on Nov. 13 under Chapter 11 case number 14-51720.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.