Two of the estates in bankruptcy of OW Bunker instituted proceedings before the Danish Maritime and Commercial High Court in order to have the Court’s opinion on the validity of various collateral security. The case concerns loans provided by ING Bank and a number of other syndicated banks in relation to the two estates in bankruptcy of O.W. Supply & Trading A/S and O.W. Bunker & Trading A/S. The total value of the loans in the case is approximately USD 110 million.

Before deciding the substantive part of the case, i.e. the validity of the loan guarantees provided by the banks, the Danish Maritime and Commercial High Court had to decide whether the case was to be decided in accordance with English law or Danish law.

ING argued that the case should be decided in accordance with English law, as the loan packages had originally been set up pursuant to English law. On the other hand, according to normal legal practice in Denmark, cases involving Danish estates in bankruptcy are generally decided in accordance with Danish law.

The estates in bankruptcy asked the Court render a decision in the matter, and the Danish Maritime and Commercial High Court has now found in favour of the two estates in bankruptcy, ruling that the case is to be decided in accordance with Danish law.

ING Bank may still appeal against the decision.

Plesner, represented by Michala Roepstorff (attorney-at-law and partner) and Peter Bang (attorney-at-law and partner), conducted the case on behalf of the two estates in bankruptcy.

Pernille Bigaard (attorney-at-law and partner) of Plesner has been appointed trustee of the estates in bankruptcy of OW Bunker.

Read the full version of the decision of the Danish Maritime and Commercial High Court (in Danish)