Lawsuits related to trade and financing deals by Singapore’s Hin Leong Trading have caught millions of dollars of oil in a web of ownership claims. The intricate claims of ownership involving Hin Leong’s partners and lenders occur after the trading company obtained financing with non-existent cargoes of oil as collaterals.
Hin Leong owed $646 million from lenders that offered inventory financing facilities. However, PwC reported that Hin Leong owned oil inventories worth $212 million as of March 20. Hin Leong was put under judicial management in April after owing $3.8 billion to 23 banks. The company also overstated its asset values by at least $3 billion.
Unipec Singapore Pte Ltd, the trading arm of China’s Sinopec, is seeking diesel deliveries aboard a VLCC and tow Aframax-sized vessels under sales contracts with Hin Leong. The tankers were chartered by Ocean Tankers owned by Hin Leong’s founder O.K. Lim, which has also been put under judicial management.
According to PwC, Societe Generale SA, Credit Agricole Corporate & Investment Bank, ICICI Bank, HSBC, and Natixis SA have claimed ownership of cargoes onboard the Chang Bai San, E Mei Sanm and Wu Yi San FSUs. PwC also reported that Sembcorp Cogen, Unipec, and Coöperatieve Rabobank UA Singapore had made ownership claims on oil stored at tanks in Universal Terminal. Universal Terminal is a petroleum storage company partially owned by the Lim family. Other companies such as Trafigura, Glencore Singapore, and Winson Oil Trading have also sought ownership at other assets.
