The CEO of Singapore-based energy transportation firm Ocean Tankers (Pte) Ltd on Wednesday (15 April) issued a letter to the maritime industry stating its intention to still continue business as usual amidst the debt restructuring of affiliated oil company Hin Leong Trading Pte Ltd.
“We refer to the recent news in the public Domain about Hin Leong Trading Pte Ltd (“Hin Leong”) having appointed advisers in its debt restructuring exercise,” stated Evan Lim in the letter widely circulated within Singapore’s bunkering sector obtained by Manifold Times.
“Please note that the Company is a separate entity from Hin Leong and has not guaranteed the debts of Hin Leong. Kindly be assured that the Company is able to and intends to carry on its business as usual.”
Summary of developments
Hin Leong Trading had a minimum USD 3 billion (SGD 4.25 billion) combined exposure from as much as 10 banks including HSBC Holdings, DBS Group Holdings and OCBC Bank, reported Bloomberg on Wednesday. It noted HSBC having the largest exposure of USD 600 million.
To date, at least two lenders have blocked short term credit facilities to Hin Leong Trading.
Multinational professional services company PricewaterhouseCoopers and legal firm Rajah & Tann have been appointed by Hin Leong Trading as its advisers for negotiations with banks, according to Reuters on Wednesday.
Ocean Tankers affiliated firms
Ocean Tankers is part of a group of companies which include Hin Leong, Universal Terminal, Tuas Terminal, and Ocean Bunkering Services (OBS).
OBS was ranked third in the Maritime and Port Authority of Singapore (MPA) list of top bunker suppliers by volume in 2019.
Related: Hin Leong Trading finances under scrutiny, amid credit pull from two banks
Related: Exclusive: Singapore top bunker suppliers reveal estimated sales volume for 2019
Photo: Aditya Chinchure on Unsplash
Published: 16 April, 2020
‘We have already settled [the issue] with Global Energy Trading and the suit has been withdrawn/discontinued,’ a source at Bunker House Petroleum told Manifold Times.
Total bunker sales at Panama Canal was 448,093 mt in March compared to sales of 449,815 mt on year; VLSFO 0.5% sales dominated at 295,797 mt.
Project by KAJ Development was set to be the largest port in the region, but was suddenly terminated in a letter from the state government on 16 November.
‘As a result of focusing on the development of eco-friendly technologies [...] to meet IMO environmental regulations, we have been recognised in the global market,’ said CEO.
Premiums for delivered VLSFO were at around $12-15/t to 0.5pc sulphur marine fuel cargo prices in November, before declining to $8-9/t in December, it said.
GP Global is focusing on making some redundancies in lesser performing areas of its business and talking with banks and creditors for ways to return to normal operations, it said.
Veritas Petroleum Services records numerous contaminants such as plastic, fibres, black gum, paraffins, fatty acids, and other component found in the off-spec RMK 700 marine fuel.
Course includes topics on valid and binding transactions; quality or quantity disputes; shipping issues; contract termination; claims; insolvency and others. Registration closes 25 February 2021.
All bunker vessels that have received the necessary clearance for out of port bunkering operations may do so at the stated Tompok Utara coordinates only or risk penalty, according to the MMEA.
The COVID-19 pandemic continues to evolve and MPA is working closely with other agencies to monitor the situation, both globally and in Singapore, the port authority tells Manifold Times.
Caroline Yang, President of SSA, addresses issues earlier raised by players; including PMC No. 04, the seven-day restriction, contactless bunkering, sampling point, hose connection, and more.
IBIA Asia, ABIS, sources from Singapore’s bunkering and surveying companies, and an industry veteran share with Manifold Times the issues expected from MPA’s latest Covid-19 measures.
