Investors institute legal proceedings against OW Bunker
A number of institutional investors are planning to bring legal proceedings against OW Bunker. The legal proceedings concern prospectus liability and disclosure obligations under securities regulation. The purpose of the proceedings is to seek to determine responsibility and obtain compensation for the benefit of members and clients.
In December 2014, a number of institutional investors launched an investigation into the bankruptcy of OW Bunker with a view to determining whether there are grounds for asserting legal liability.
The investigation has, among other things, focussed on errors and flaws in the prospectus prepared in connection with OW Bunker's IPO, liability in connection with the offering and the sale of shares in OW Bunker as well as the management's liability for OW Bunker's operations in the period from the IPO until the bankruptcy.
Based on the conclusions of the investigation, so far 27 institutional investors representing claims for more than DKK 800 million have decided to collectively bring legal proceedings against relevant parties with a view to obtaining compensation and determining responsibility. Two actions will be brought: One of the actions concern prospectus liability and will be brought against OW Bunker, relevant former members of OW Bunker's management and relevant Altor entities. The other action concerns liability for non-compliance with the disclosure obligations under stock exchange regulation and will be brought against OW Bunker and relevant former members of OW Bunker's management. If more information is obtained, further parties may be involved in the actions. Writs against the relevant persons and companies are being prepared. The actions will be brought before the Danish courts of law.
The law firm Bruun & Hjejle will be representing the investors in the proceedings. The law firm Accura and the auditing firm KPMG will assist Bruun & Hjejle.
Anders Damgaard, CIO at PFA Pension, says:
"The entire course of events regarding the IPO of OW Bunker and the subsequent bankruptcy is regrettable. It should not be possible for the company described in the prospectus to be declared bankrupt only six months after the IPO. It is therefore extremely important to identify what went wrong and to determine responsibility. Both in order to obtain the best possible compensation for our clients' losses, to shed light on the weaknesses of the framework conditions for IPOs, and not least to ensure that something like this will not happen again."
Kenneth Joensen, Chief General Counsel at ATP, says:
"It is our duty towards ATP's members to seek to recover as much as possible of the loss incurred as a result of OW Bunker's bankruptcy. This was a highly negative event on the Danish stock market, and there is a strong need for clarifying the events preceding the bankruptcy and determining responsibility.
Participating institutional investors in the prospect liability action include, among others: ATP, PFA, Kapitalforeningen SEB Kontoførende, Investeringsforeningen SEBinvest II, Investeringsforeningen SEBinvest, Kapitalforeningen Lærernes Pension Invest, Topdanmark Forsikring A/S, Topdanmark Livsforsikring, PensionDanmark Pensionsforsikringsaktieselskab, Kapitalforeningen Unipension Invest, DIP, JØP, Investeringsforeningen Maj Invest, Maj Invest Holding A/S, AP Pension Livsforsikringsaktieselskab, Kapitalforeningen Sampension Invest, Investeringsforeningen Danske Invest, Investeringsforeningen Danske Invest Select, Kapitalforeningen Danske Invest Institutional, Danske Invest FCP, Investeringsforeningen PenSam Invest, Kapitalforeningen Mermaid Nordic, Kapitalforeningen Wealth Invest, Absalon Invest og Access Small Cap A/S.
Contacts: Anders Klinkby, Head of Press, ATP. Tel.: +45 2510 1919. Email: akm@atp.dk
Morten Jeppesen, Director, Corporate Communications & Public Affairs, PFA.
Tel.: +45 2157 8366. Email: mjp@pfa.dk