Lawsuit Over $124 Million Sale of GP Global Fujairah Terminal

Gulf Petrochem FZC has launched a lawsuit to reverse the sale of restructuring commodity trading firm GP Global‘s $124 million sale of its Fujairah bunkering terminal.

Sutton, working for FTI Consulting at the time, was appointed GP Global’s chief restructuring officer in August 2020. He now works for a different restructuring firm, Fortune Ark Restructuring.

The lawsuit alleges that a higher bid of $135 million for the terminal could have been accepted, and that the facility’s land lease was sold alongside the terminal without authority and for no additional value.

In addition, shipping firm V8 Pool Inc had been awarded an attachment against the terminal by a court in Sharjah as part of its legal fight to reclaim money owed to it by GP Global, but was not informed in advance about the sale, according to the source.

GP Global went into restructuring in July 2020 following financial difficulties, and subsequently announced it had uncovered fraud by some of its employees in the UAE. The firm had been a significant presence in global bunker markets, as well as in other commodity markets.

The Fujairah terminal has 412,000 m3 of storage capacity, with 17 product tanks and two utility tanks, and can handle fuel oil, gasoil and cutter stock. The terminal was historically handling as much as 7.4 million mt/year of refined product deliveries, of which a large share was marine fuels.

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