The world’s largest ship fuel supplier OW Bunker said it had filed for bankruptcy after an alleged fraud cost it at least $125 million and banks refused to provide new credit lines for it to cover its bills. Chairman Niels Henrik Jensen said the company’s banks hold mortgages covering all its receivables and that without new, significant credit facilities in the immediate future, the business could not be saved. “It is now clear that such facilities will not be made available. Nor is a sale as a going concern a realistic option,” Jensen said in a statement. OW Bunker, the third-largest company in Denmark by revenue, owes 13 banks $750 million. It filed for bankruptcy at the probate court in Aalborg in northern Denmark. The company said on Thursday it had discovered fraud by senior employees in a Singapore-based subsidiary. “As a result of the internal investigation, it has been decided to report two key employees in the Singapore-based subsidiary Dynamic Oil Trading,” it said. OW Bunker was listed on Nasdaq Copenhagen in March in the second-biggest initial public offering in Denmark since 2010. It was estimated to supply about 7 percent of the global market for bunker fuel, competing with companies such as World Fuel Services Corp, Chemoil Energy and Aegean Marine Petroleum Network. The company said late on Wednesday preliminary findings suggested a potential loss of about $125 million. An estimated trading loss of $24.5 million announced on Oct. 23 was increased to some $150 million. It has given no details on the nature of the fraud. Traders and shipping companies scrambled to source fuel and take over supply contracts on Friday. The alleged fraud at Dynamic Oil Trading is potentially one of the biggest financial market scandals to hit Singapore since 2004, when China Aviation Oil (Singapore) ran up oil futures losses of $550 million.