Singapore: Toyota Tsusho Corporation seeking $21 million from Brightoil
Tokyo-based commodities trading firm Toyota Tsusho Corporation on 21 November, 2018 organised a vessel arrest for Brightoil 319 (IMO 9711860) at the High Court of Singapore as part of efforts to claim USD $21 million against its owner over an alleged ‘failed’ settlement agreement, according to documents obtained by Manifold Times.
The latest action by Toyota Tsusho was the result of a 31 May, 2018 settlement agreement with Brightoil Petroleum (S'pore) Pte Ltd and Brightoil Petroleum (Holdings) Limited; with Chairman Dr Sit Kwong Lam entering into a deed of personal guarantee and indemnity favouring the Japanese firm.
According to the settlement agreement, the payment schedule of the approximate USD $21 million was as follows:
- USD $5 million on or before 29 June 2018
- USD $10 million on or before 31 July 2018
- Payment of the remaining debt on or before 31 August 2018
Brightoil paid the first instalment of USD $5 million on or about June 2018, but did not pay the second instalment of USD$ 10 million on or before the due date of 31 July.
This caused Toyota Tsusho to issue a notice of default to Brightoil on 1 August. Following, Brightoil made a payment of USD $50,000 to Toyota Tsusho on 2 August; but this did not change the legal direction against Brightoil.
Since 2 August to 2 November, Toyota Tsusho has continued to receive payment totalling USD $983,000 from Brightoil in the following amounts:
- USD $50,000 on 14 August
- USD $50,000 on 21 August
- USD $333,000 on 28 August
- USD $200,000 on 10 September
- USD $50,000 on 18 September
- USD $100,000 on 1 October
- USD $50,000 on 9 October
- USD $50,000 on 15 October
- USD $100,000 on 2 November
The above payment performance, which was not in compliance with the settlement agreement, led to Toyota Tsusho entering into a statutory mortgage arrangement with Brightoil and Dr Sit for Brightoil 319 on 4 September.
“Without prejudice negotiations between the Parties relating to settlement of the Outstanding Indebtedness under the Settlement Agreement and the Personal Guarantee have failed,” stated Toyota Tsusho.
This lead to the Japanese firm issuing a notice of default to Brightoil while organising the arrest of Brightoil 319 on 20 November, along with the entire Singapore bunker tanker fleet of Brightoil and the 319,911 dwt crude oil tanker Brightoil Gravity.
Brightoil bunker tankers Brightoil 688, Brightoil 639, Brightoil 666, Brightoil 319, Brightoil 326, and Brightoil 329 were following arrested at Singapore port on 21 November.
Related: Singapore: Brightoil bunker tanker fleet placed under Sheriff’s arrest
Other related: Singapore: Petrolimex owed over USD $30 million by Brightoil
Other related: Qatar National Bank seeks USD $21.59 million debt from Brightoil
Other related: Media clarification: Brightoil has settled Sea Trader International’s debt
Photo credit: Manifold Times
Published: 27 November, 2018
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