Top trader Hin Leong Trading’s financial implosion augurs more industry defaults and bankruptcies ahead
The implosion of one of Singapore’s biggest oil traders, Hin Leong Trading, has sent shockwaves through the city-state’s commodities sector as global oil markets reel from the double whammy of a supply glut and pandemic-pummelled demand.
Local lenders are now curtailing their exposure to all but the biggest industry players, raising the prospect of more defaults and bankruptcies as well as questions about the resilience of Singapore’s status as a global oil trading hub.
Billionaire energy tycoon Lim Oon Kuin, better known as O.K. Lim, stunned creditors this month when he admitted to personally hiding US$800 million in oil futures losses associated with his decades-old company. Millions of barrels of fuel used by the firm as collateral to secure loans had also been sold off to raise funds, he conceded.
Police in Singapore opened an investigation into Lim’s stunning admissions after they came to light on April 20. Hin Leong and its shipping subsidiary, Ocean Tankers, filed for bankruptcy protection when lenders including 23 different banks rejected a proposal to extend its credit facilities and grant a six-month moratorium on debts of $3.85 billion.
The implosion of one of Singapore’s biggest oil traders, Hin Leong Trading, has sent shockwaves through the city-state’s commodities sector as global oil markets reel from the double whammy of a supply glut and pandemic-pummelled demand.
Local lenders are now curtailing their exposure to all but the biggest industry players, raising the prospect of more defaults and bankruptcies as well as questions about the resilience of Singapore’s status as a global oil trading hub.
Billionaire energy tycoon Lim Oon Kuin, better known as O.K. Lim, stunned creditors this month when he admitted to personally hiding US$800 million in oil futures losses associated with his decades-old company. Millions of barrels of fuel used by the firm as collateral to secure loans had also been sold off to raise funds, he conceded.
Police in Singapore opened an investigation into Lim’s stunning admissions after they came to light on April 20. Hin Leong and its shipping subsidiary, Ocean Tankers, filed for bankruptcy protection when lenders including 23 different banks rejected a proposal to extend its credit facilities and grant a six-month moratorium on debts of $3.85 billion.
Read the full story at Asia Times.
Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
