<article><p><i>Adds details in paragraphs 5-9</i></p><p class="lead">Dubai-based commodity trading firm GP Global has been forced into a financial restructuring after a failure to win backing from some of its lenders left it short of cash.</p><p>The company, one of the biggest marine fuel suppliers in the Middle East bunkering hub of Fujairah, said it has undertaken the restructuring exercise because of challenges from the global economic meltdown caused by the Covid-19 pandemic.</p><p>"While we are constantly seeking finance lines to fund our trade, we were unable to get full support from a few financial institutions recently and therefore as a prudent decision, we have undertaken this restructuring exercise," GP Global said. The restructuring should be completed within a few months, it said, without giving more details.</p><p>The company denied unspecified "rumours" about its financial condition and said it is confident of attracting new investment in its assets. Its bunker business both east and west of Suez is performing well despite the financial headwinds faced by the industry, it said.</p><p>GP Global's statement follows days of market talk about the company's financial position. Some of GP Global's bunker customers approached other companies late last week seeking supplies, after doubts started spreading about its financial positions.</p><p>Some of GP Global's assets, including storage tanks, may have been seized by creditors, market participants said. The company did not respond to a request for comment on this issue. Its owners are in Dubai and in contact with its banking and financial stakeholders, the company said.</p><p>GP Global's assets include 412,000m³ (2.6mn bl) of storage capacity in Fujairah and 204,000m³ at Hamriyah in the UAE. It owns a 7,600 b/d refinery in Sharjah that produces naphtha, gasoil and fuel oil and is a major supplier of bitumen to the Indian market. Its other operations include oil trading, lubricants, and steel, minerals and agricultural trading.</p><p>The company said its "current tight cash position… puts us in the same position as many other surviving peers in the global trading industry". </p><p>Commodity trading firms have been hit by a pullback in bank credit since the economy slowed and oil prices collapsed in March, leading to the collapse of four Singapore-based companies this year. Banks in Singapore are looking to <a href="https://direct.argusmedia.com/newsandanalysis/article/2122295">overhaul financing standards</a> for the sector after the string of trading collapses this year. </p></article>
