Thu Nov 6, 2014 3:57am EST
* Company says discovered fraud by unnamed staff at Singapore unit
* Says to file for court restructuring process
* Head of risk management fired as result of trading loss
* Owes $750 million to 13 banks
* Shares suspended, had listed in March at 145 crowns (Adds comments from chairman, trader and details)
By Ole Mikkelsen
COPENHAGEN, Nov 6 (Reuters) - Danish shipping fuel supplier OW Bunker A/S has warned it is at risk of bankruptcy after discovering fraud by unnamed senior employees in its Singapore-based subsidiary which will send it deep into the red this year.
"The company is at risk of going bankrupt. We have decided to file for the commencement of a court restructuring process," Chairman Niels Henrik Jensen told Reuters. The group, whose shares have been suspended, said it had fired its head of risk management.
The extent of the fraud is not yet clear but preliminary findings suggest a potential loss of around $125 million, the company said, without giving any details of the nature of the fraud.
At the same time a review of the company's risk management contracts means further losses than previously announced now can be expected. An estimated trading loss of $24.5 million announced on Oct. 23 is upgraded to around $150 million, the company added.
Jensen said Danske Bank and Nordea still support the company but since 11 international banks had withdrawn their support, management had decided to seek a court restructuring procedure.
Head of risk management Jane Dahl Christensen has been fired as a consequence of the trading loss.
By revenue OW Bunker is the third-largest company in Denmark and it owes the 13 banks $750 million.
"This is major news and the loss is massive. Even for an oil company the loss is massive, let alone a bunker (fuel) trader," a Singapore based oil trader said.
OW Bunker is in discussions with syndicate banks and said it will inform the market further as soon as possible.
OW Bunker was listed on Nasdaq Copenhagen in March at 145 Danish crowns per share, giving it a stock market value of about 5.3 billion Danish crowns ($892 million). Morgan Stanley, Carnegie, Nordea and ABG Sundal Collier lead the flotation.
Management has twice since downgraded profit guidance for the year.
OW Bunker shares closed at 83.50 crowns on Wednesday. The company has around 20,000 shareholders with private equity company Altor as the biggest shareholder holding 42.8 percent.
(1 US dollar = 5.9409 Danish crown) (Additional reporting by Rachel Armstrong and Jessica Jaganathan in Singapore; Editing by Stephen Coates and David Holmes)
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