O.W. Bunker Holding North America settlements trigger plan changes

By Caroline Salls

Pittsburgh, Nov. 10 – O.W. Bunker Holding North America Inc. requested court approval to make a change to its Chapter 11 plan that will increase the amount available for distribution to unsecured creditors, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Connecticut.

Specifically, the company said a settlement agreement requires it to free up some restricted cash and/or reduce priority claims in exchange for allowing an underlying claim in whole or part as an unsecured claim.

O.W. Bunker said this negotiated reclassification of higher priority claims as lower priority unsecured claims requires an increase in the O.W. Bunker North America preferential distribution amount to $2.65 million from $2.5 million.

According to the release, proposed company settlements “increase the total amount of funds available for distributions to unsecured creditors, by reclassifying in whole or in part certain claims that had been either priority claims or claims for which funds had been segregated (or both).”

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.

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