O.W. Bunker creditors seeking case conversion to Chapter 7 liquidation

By Kali Hays

New York, Jan. 2 – O.W. Bunker Holdings North America Inc. creditors Bomin Bunker Oil Corp. and O’Rourke Marine Services, Inc. asked the U.S. Bankruptcy Court for the District of Connecticut to convert the company’s Chapter 11 case to Chapter 7, according to a joint Dec. 31 motion.

Bomin and O’Rourke allege that O.W. Bunker has never had the intention of reorganizing and from the outset of its cases, company employees have “all engaged in collection and accounting efforts to assist liquidation, not reorganization.”

“There is neither a viable business to reorganize nor an advantage to liquidating under Chapter 11,” the motion stated.

The creditors went on to say that the case “needs to be turned to liquidation, conserving the estates assets and thereby maximizing creditor value” and that the “convenience and continued funding of counsel and debtors’ business representative is not a reason to continue in Chapter 11.”

As previously reported, O.W. Bunker has been pursuing sales of its oil assets and is seeking a transfer of its Chapter 11 cases to the U.S. Bankruptcy Court for the District of New York to expedite the sale process.

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

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