Brussels, July 1, 2024 – As reported in Danish media earlier in 2024, there have been discussions about reaching a settlement between several of the parties involved in the co-managed cases. In the group of joint cases involving the bankrupt OW Bunker the significant professional parties, including the private equity fund Altor Fund II, the investment banks, and both the Danish and the foreign institutional investors that bought shares in connection with and after the IPO of the company in the spring of 2014, a settlement has now been reached.
OW Bunker went bankrupt in November 2014 after suffering significant losses on derivatives and a loss on a subsidiary's biggest customer in Singapore. The bankruptcy of OW Bunker led to heavy losses for both the company’s creditors and the shareholders that had invested in the company in connection with the IPO and afterwards.
Deminor assisted a group of 20 foreign institutional investors who brought actions for damages in 2017 against the investment banks Carnegie and Morgan Stanley. Deminor also funded their litigation. The subjectmatter of the legal action was prospectus liability in connection with the IPO. A number of Danish institutional investors brought corresponding actions for damages concerning prospectus liability and liability for failing to comply with the disclosure requirements in the time leading up to the bankruptcy of OW Bunker against OW Bunker and its former management and Board of Directors, Altor Fund II and the investment banks Carnegie and Morgan Stanley. An association of Danish private investors set up on the initiative of Dansk Aktionærforening brought a corresponding action for damages concerning prospectus liability against several of the same defendants.
In the settlement, the plaintiffs in the four legal actions are compensated for losses suffered on the investment in OW Bunker with an aggregate amount of approximately 645 million DKK, including costs relating to the cases except for the case initiated by the association of Danish private investors which are to be determined by the High Court in accordance with the Danish Administration of Justice Act section 332(1). Under the settlement agreement the parties waive any further claims against each other relating to OW Bunker, and the legal actions between the parties before the Danish Eastern High Court will be withdrawn.
The settlement agreement concerning the class action facilitated by Dansk Aktionærforening has now also been formally approved by the group representative, the association “Foreningen OW Bunker Investor”. The Danish Eastern High Court will formally be notified of the settlements.
The parties to the group of linked cases are pleased to have reached a settlement:
Charles Demoulin, Chief Investment Officer of Deminor, said:
“We are satisfied with this outcome and pleased that both sides were able to find common ground and resolve their dispute amicably. This settlement makes it possible for our clients to benefit from a reasonable compensation for their losses. We advise them to accept this solution which represents a better alternative to continuing the litigation with the resulting uncertainties.”
Joeri Klein, General Counsel Netherlands and Co-head Investment Recovery of Deminor, said:
“We consider it a positive development that also in Denmark it has now proven to be possible to find a balanced solution to redress investor related claims. The broad adoption of the settlement by Danish professional investors, the 20 foreign institutional investors represented by Deminor and the association representing private investors underlines the equitable result that is achieved.”
None of the defendants have acknowledged any legal responsibility in the group of linked cases in connection with the settlement.
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About Deminor:
Founded in 1990, Deminor is a leading privately owned international litigation funder with 9 international offices with specialists in arbitration, enforcement, intellectual property, competition, investments & tax, corporate & post-M&A.
Combining skill sets from 19 different nationalities and 22 languages, Deminor's track record stands at a positive recovery of 77.8% in all concluded cases across 22 jurisdictions, surpassing the industry average of 70%.
