Business

DBS Hong Kong building case against Sinfeng over alleged ‘fraudulent misrepresentation and/or conspiracy’

The bank is filing an application for pre-action discovery at the High Court of the Republic of Singapore in order to ascertain its future direction of proceedings against Sinfeng, according to court documents.

Published

5 years ago

April 20, 2021

Admin

Legal representatives of DBS Bank (Hong Kong) Limited will be submitting an application to the High Court of the Republic of Singapore on Wednesday (21 April) to start a suit against Sinfeng Marine Services Pte Ltd (Sinfeng, or defendant), according to documents obtained by Singapore bunkering publication Manifold Times from the court.

The financial institute is seeking pre-action discovery, for the release of relevant documents between Sinfeng and the defunct bunkering firm Coastal Oil Singapore Pte Ltd. (Coastal Oil), to determine the type of legal action it should commence against Sinfeng going forward.

Background of DBS involvement with Coastal Oil

DBS Bank Hong Kong (DBS, or plaintiff) earlier issued a USD 30 million credit facility to Coastal Oil and is seeking to recover the debt.

It claims Sinfeng entered into five contracts with Coastal Oil between October to November 2018, where Coastal Oil assigned to DBS its receivables. However, Coastal Oil was shortly placed in creditors’ voluntary liquidation on 13 December 2018.

The bunkering firm owed approximately USD 357 million to 79 companies, of which USD 354 million was owed to major banks (including DBS).

‘Curious relationship’ between Sinfeng and Coastal Oil

DBS noted it has received reports from liquidators of Coastal Oil which indicate there may have been fraudulent conduct where executed documents were not genuine.

A liquidator report on 2 December 2019 revealed a trading loop between Sinfeng, Coastal Oil and Arkanata Yasa Trading Pte. Ltd. (Yasa) where the details are as follows:

Coastal Oil sends deal recap emails to Sinfeng for confirmation, identifying Yasa as the end buyer
Instruction from Coastal Oil for transfer of funds: Coastal Oil transfers to Yasa; Yasa instructed to transfer to Sinfeng
Coastal Oil sends bunker delivery note to Sinfeng
Sinfeng transfers funds to Coastal Oil, completing the circular transaction / funds transfer loop.

The liquidator document further identified a former Coastal Oil Treasury Officer, who is currently facing 63 charges for allegedly creating fictitious sales contracts and submitting them to banks in order to obtain financing, placing Yasa as an end-buyer.

Further, the same report stated invoices issued to Sinfeng between July to December 2018 being accompanied by the Bunker Delivery Note issued by PT Farma Kimia Distribution, which is an unknown entity that the liquidators have not been able to locate or contact.

“At the bare minimum, the abovementioned circumstances call into question the authenticity of the transactions between the Defendant and Coastal Oil (which formed the basis of Coastal Oil’s Financing Applications with the Plaintiff),” stated the bank.

“Further, it lends itself to the possibility that the Defendant is part of a broader conspiracy with Coastal Oil.

“However, I am advised and verily believe that the Plaintiff requires additional documents before it is able to come to a firm landing as to whether it should commence action against the Defendant.”

DBS request for payment results in validity dispute

DBS sought payment from Sinfeng after Coastal Oil underwent voluntary liquidation on 13 December 2018 by sending a request to ask payment for US$27,190,988.28 from Sinfeng on 19 December 2018 regarding three contacts.

On 26 December 2018, the bank however received a letter from Sinfeng disputing the validity of the three contracts.

According to the bank, the Sinfeng contracts were affixed by its authorised representative, namely Liang Yu Wei (Mr Liang), with the company’s seal. However, further communication between DBS and Sinfeng suggested of Coastal Oil allegedly being in possession of Mr Liang’s signature stamp.

“The Defendant did not proffer any explanation as to how Coastal Oil would have come into possession of Mr Liang’s signature stamp, since Mr Liang was an authorised representative of the Defendant,” stated DBS.

“Even if the Sinfeng Contracts are revealed to be sham contracts as the Defendant claims, it would no doubt have been difficult for Coastal Oil to duplicate Mr Liang’s signature stamp without additional help.”

Reasons behind application for pre-action discovery

DBS alleged Sinfeng to date has not provided “any assistance” into the matter to ascertain whether the Sinfeng Contracts are genuine; as such, it is seeking pre-action discovery of the relevant documents to do so.

“I understand that based on the available facts, the Plaintiff believes that it potentially has a claim against the Defendant as an assignee of receivables under the Sinfeng Contracts, for fraudulent misrepresentation and/or conspiracy,” stated DBS.

“However, the Plaintiff is not in a position to commence proceedings yet as it presently has insufficient facts to mount a claim.”

The bank added: “If the Sinfeng Contracts are genuine, then the Plaintiff may proceed against the Defendant for failing to make payment under the Assignment.”

“On the other hand, if the Sinfeng Contracts are found to be sham contracts, then the Plaintiff may take action against the Defendant for losses suffered on account of the fraud perpetrated on the Plaintiff and/or the fraudulent misrepresentation exercised on the Plaintiff when the Defendant signed the Acknowledgements.”

A complete coverage of the events leading to the current development has been arranged by Singapore bunker publication Manifold Times (in descending date order) below:

Photo credit: Manifold Times
Published: 20 April, 2021

LNG Bunkering

Singapore: Eastern Pacific Shipping hits 700 LNG bunkering milestone

Since commencing LNG bunkering operations in November 2020, the company said it has completed a total LNG bunkering volume of 2,920,191 cubic metres.

Published

9 hours ago

August 18, 2026

Admin

Singapore: Eastern Pacific Shipping hits 700 LNG bunkering milestone

Singapore-based shipping firm Eastern Pacific Shipping (EPS) on Monday (17 August) said the company has successfully completed its 700th LNG bunkering operation, carried out for vehicle carrier Lake Victoria in Emden, Germany.

Since commencing LNG bunkering operations in November 2020, the company said it has completed a total LNG bunkering volume of 2,920,191 cubic metres (m3).

“Reaching 700 LNG bunkering operations reflects not only the scale of our investment in alternative-fuel capabilities, but also the experience, coordination and commitment of our teams at sea and ashore,” EPS said in a social media post.

“As we continue to grow and diversify our fleet, every operation adds to the practical experience needed to support shipping’s energy transition.”

Manifold Times previously reported the company completed a total of 530 LNG bunkering operations with over 2.4 million m3 of LNG bunkered, from the start of recorded data to 31 Dec 2025.

In its 2026 ESG Report, EPS said its fleet is among the largest dual-fuel fleets in the industry, with over 170 vessels designed to operate on alternative fuels.

In 2025, 25% of the fuel consumed by EPS fleet were alternative marine fuels, including LNG, LPG, ethane, and biofuels.

Photo credit: Eastern Pacific Shipping
Published: 18 August, 2026

LNG Bunkering

Yang Ming dual-fuel vessel completes first SIMOPS LNG bunkering operation in Shanghai

“YM Willpower” successfully received around 2,000 mt of LNG alongside active cargo handling, significantly enhancing operational efficiency during the port call.

Published

9 hours ago

August 18, 2026

Admin

Yang Ming dual-fuel vessel completes first SIMOPS LNG bunkering operation in Shanghai

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) on Monday (17 August) said its 15,500 TEU LNG dual-fuel vessel, YM Willpower, successfully completed its first-ever LNG bunkering operation via SIMOPS (Simultaneous Operations) at the Port of Shanghai.

Through close collaboration with Shanghai International Port (Group) and SIPG Energy Shanghai, the vessel successfully received around 2,000 metric tonnes (mt) of LNG alongside active cargo handling, significantly enhancing operational efficiency during the port call.

With LNG dual-fuel technology, the company said it is continuing to expand alternative-fuel bunkering capabilities, enhance operational flexibility and efficiency and advance lower-carbon shipping solutions.

Manifold Times previously reported YM Willpower completing its first bunkering operation in Singapore.

In 2026, Yang Ming will progressively introduce newly built 15,500 TEU class container vessels primarily fueled by liquefied natural gas (LNG) into its operating fleet.

The lead vessel, YM Willpower, completed partial LNG bunkering at the shipyard prior to delivery and was officially deployed on 8 February into Yang Ming’s Far East–Mediterranean MD2 service.

Photo credit: Yang Ming Marine Transport Corporation
Published: 18 August, 2026

Methanol

Fratelli Cosulich launches methanol-ready bunker tanker in China

Designed with MarineLINE-coated cargo tanks and methanol readiness from the outset, “Carlotta Cosulich” combines operational flexibility with future-fuel readiness.

Published

9 hours ago

August 18, 2026

Admin

Fratelli Cosulich launches methanol-ready bunker tanker in China

Genoa-based marine fuel supplier Fratelli Cosulich on Monday (17 August) announced the launch of its new methanol-ready bunker IMO II tanker, Carlotta Cosulich.

The launch of Carlotta Cosulich, the third of four sister vessels, took place at Taizhou Maple Leaf Shipyard in China, bringing together the project team, partners and stakeholders.

Silvia Bordon, General Manager, served as the vessel’s godmother during the ceremony.

“Designed with MarineLINE-coated cargo tanks and methanol readiness from the outset, Carlotta Cosulich combines operational flexibility with future-fuel readiness,” the company said in a statement.

Equipped with a five-tonne cargo crane and dedicated arrangements for Single Point Mooring (SPM) operations further enhances her versatility across a wider range of bunkering operations.

“Following the successful delivery of her two sister vessels, she brings us one step closer to completing this four-vessel programme and reinforces Fratelli Cosulich Group’s commitment to safety, innovation, sustainability and operational excellence,” the company added.

Photo credit: Fratelli Cosulich
Published: 18 August, 2026