Ref: IMD-7-2127

Case study

Reference: IMD-7-2127

Order this case study


OW Bunker (B): From top to flop in eight months

Anand Narasimhan

By Professor Anand NarasimhanAnand Narasimhan, Jens Famgronning, Tino Bendix and Yvonne Wutzler

Despite 1) being listed as a new darling on the stock exchange 2) an appreciation of the share price of 20% soon after the listing exceeding US$ 1 billion in market cap 3) a high profile Board of Directors 4) creditable sponsors of the IPO (such as Morgan Stanley), it became a mystery and dramatic meltdown, when the company filed for bankruptcy less than 8 months after the listing.

As can repeatedly be seen from the IPO prospectus, it was supposedly a low margin but also low risk operation, because of the apparent diligent risk control of the company. So, what went wrong?

The case will describe the dynamics which took place pre- and post the IPO and led to the bankruptcy. It will cover aspects such as Corporate Governance of the Board, ethics surrounding IPO’s and prospectus, risk management or a lack of it, Board composition and best practices and not least the HALO effects of a successful CEO and a highly reputable and respected new Board of Directors.

Learning Objective

The target of the B case is to learn from it in order for us to detect and deal with warning signals about poor governance earlier.
KeywordsBankruptcy, Board, Collapse, Corporate Governance, Fraud, Initial Public Offering, Prospectus, Risk Management
SettingsDenmark
Materials
March 28th, 2014 – November 7th, 2014
TypePublished Sources
Copyright©2019
LanguageEnglish
Order this case study

Reference: IMD-7-2127

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Fax +44 (0)1234 751125
Email [email protected]

The Case Centre Babson College

Babson Park Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email [email protected]

Harvard Business School Publishing

60 Harvard Way Boston, MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Case Center Japan

2nd Floor, Toranomon Jitsugyokaikan,
1-1-20 Toranomon, Minato-ku,
Tokyo 105-0001 Japan
Tel +81 3 3503 6621
Fax +81 3 3501 0550
Email [email protected]

Copyright information

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information, please contact IMD's Information Center Copyrights Services.

Contact our Knowledge Center for additional information on IMD publications

Case study

Reference: IMD-7-2127

Order this case study

Looking for something specific?

Keep reading

Back to top