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Judicial managers of Ocean Tankers to present restructuring proposals to owners

13 Jul 2020

UK-based accounting firm Earnst and Young (EY), court-appointed supervisors for Ocean Tankers Pte Ltd (OTPL) has produced a report proposing two restructuring strategies to the shipping company’s owners pending a meeting with them, reports Reuters.

According to the EY’s report, the purpose of the upcoming meeting is to determine whether OTPL’s owners Lim Oon Kuin, his son Evan Lim Chee Meng and daughter Lim Huey Ching, or the Lim family are “willing to support any future restructuring of OTPL”.

As part of its role as supervisor, EY has leased out tankers and resumed operations at OTPL’s oil storage and lubricant blending businesses. 

The first of EY’s proposed restructuring strategy to safeguard OTPL’s shipping enterprise is that the company maintains itself as Xihe Group’s fleet manager and that Xihe will advance payments for services.

OTPL’s oil storage and lubricant processing enterprise can then be operated independently or sold to any third-party investors who are interested, suggested EY in its report. 

The second proposed strategy would be for EY to consider a proposition from parent company Hin Leong Trading’s court-appointed judicial manager PricewaterhouseCoopers to restructure the oil trading business and other businesses owned by the Lim family into an integrated petroleum trading platform.

The report added that the Lim family had responded to EY’s invitation to meet to discuss the future of OTPL provided certain conditions are met. 

Related: Ocean Tankers: Notice to prove debt or claim published by interim judicial managers
Related: ‘Reasonable prospects’ to keep Ocean Tankers as a going concern, states Director
Related: Singapore: Ocean Tankers, a separate entity of Hin Leong, seeking judicial management
Related: Singapore High Court concedes interim judicial management to Hin Leong Trading
Related: Report: Hin Leong Trading appoints PwC as interim judicial manager
Related: Singapore’s Police Force commence investigations into Hin Leong Trading
Related: Sembcorp Cogen aborts gasoil supply and storage contract with Hin Leong Trading
Related: Winson Group and ZenRock Commodities reassure fiscal stability despite Hin Leong fiasco
Related: Report: Sinopec expresses interest in Hin Leong Trading stake of Universal Terminal
Related: Report: Hin Leong Trading founder gave instructions to hide USD 800 million losses
Related: Singapore: Ocean Bunkering Services to discontinue marine fuel deliveries
Related: Hin Leong in debt restructuring exercise; Ocean Tankers a separate entity, says CEO
Related: Report: Hin Leong Trading finances under scrutiny, amid credit pull from two banks


Photo credit:
Manifold Times
Published: 13 July, 2020

 

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