Lenders caught in oil collapse

ANZ and Westpac have been caught up in the collapse of one of the world’s biggest oil traders, with its demise sending fresh shockwaves through the energy industry.

Singapore oil trading house Hin Leong Trading, which means “prosperity” in Chinese, has filed for bankruptcy protection amid reports that on the instruction of billionaire founder Lim Oon Kuin, it hid $US800 million ($1.3 billion) in losses on trades in futures contracts.

The company owes ANZ $US186 million and Westpac $US54 million out of a total of $US3.85 billion spread through 23 banks, according to filings.

Heavyweight British bank

HSBC faces the biggest posure, at $US600 million.

Two banks, the Netherlands’ ABN Amro and French group Societe Generale, have already filed claims in Singapore in a bid to recoup lost funds.

The infrastructure arm of Australian investment bank Macquarie is also linked to the unfolding scandal through a 34 per cent stake it owns in a Singapore oil terminal partowned by Hin Leong.

Chinese giant Sinopec is now rumoured to be in talks with Hin Leong to buy a share of the Universal Terminal, one of the biggest petroleum terminals in Asia, which Macquarie has part-owned since early ex2016 after paying $US440 million for its holding.

Macquarie owns the stake through a private equity fund focused on infrastructure assets in Asia, managed through its $180 billion Macquarie Infrastructure and Real Assets division.

ANZ, Westpac and Macquarie all declined to comment.

The revelation that $800 million of futures losses had been disguised came in a court filing after Mr Lim, known in the industry as OK Lim, said he would step down from both Hin Leong and its shipping arm Ocean Tankers, which owns 130 oil tankers in the region.

The Australian