Head of Hin Leong accused of not disclosing $800 million losses
The founder and director of top Singapore oil-trading company Hin Leong Trading Pte Ltd. (HLT) directed the firm not to disclose hundreds of millions of dollars in losses over several years, he said in a court filing.
The affidavit signed by Lim Oon Kuin, a Chinese immigrant in his 70s widely known as O.K. Lim, is part of a Friday filing to the Singapore High Court by HLT and subsidiary Ocean Tankers (Pte) Ltd., seeking a six-month moratorium on debts of $3.85 billion to 23 banks. The filing cites a collapse in the oil price and the coronavirus pandemic, which has hammered oil demand and pushed up costs for HLT, one of Asia’s largest oil traders. Despite reporting net profit of $78.2 million for the business year ended in October, “HLT has not been making profits in the last few years,” Lim said in the filing, which has not been made public.
The company “suffered about $800 million in futures losses over the years but these were not reflected in the financial statements,” he said. “In this regard, I had given instructions to the finance department to prepare the accounts without showing the losses and told them that I would be responsible if anything went wrong.”
Lim, reached by phone, declined comment, as did his lawyer Patrick
Ang, managing partner at Rajah & Tann Singapore LLP, who was reached by email.
Lim’s son Evan Lim Chee Meng, a director at HLT and Ocean Tankers, who also submitted a signed affidavit with the debt-moratorium request, did not respond to an email requesting comment. HLT and Ocean Tankers could not be reached for comment over the weekend.
The 23 banks named in the filing declined or did not respond to emailed requests in the past several days for comment.
The affidavit, which said Lim was resigning immediately as director of the family-held company he founded half a century ago from a single delivery truck, did not specify over how many years the losses were incurred or why he was blaming HLT’s difficulties on problems that arose largely in the past few months.
Under Singapore law, Friday’s filing automatically protects HLT from legal action by creditors for 30 days while the court decides whether to grant the six-month debt-repayment extension.
Lim said in the filing that HLT had held a video conference on Tuesday with creditors and advisers “to inform bank lenders of HLT’s financial position,” which it said included liabilities of $4.05 billion against assets of $714 million as of April 9.