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Singapore: High Court dismisses UniCredit Bank USD 37 million claim against Glencore over Hin Leong transaction

Judge Maniam dismissed all of UniCredit’s claims against Glencore in regards to a letter of credit UniCredit issued in November 2019 to Hin Leong to finance a purchase of 150,000 mt of HSFO from Glencore.

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Editor: The following article is a summary of the full 69-page judgement from the High Court of the Republic of Singapore. The complete document published on 21 October 2022 is available here.

UniCredit Bank on Friday (21 October) lost a USD 37 million (exact: USD 37,209,550.35) claim against Glencore Singapore in a transaction related to liquidated oil trader Hin Leong at the High Court of Singapore. 

The Milan-based banking group was claiming against Glencore over fraud or deceit by Glencore, a conspiracy between Glencore and Hin Leong to injure UniCredit by unlawful means, and unjust enrichment, amongst others.

Judge Andre Maniam J concluded the judgement by dismissing all of UniCredit’s claims against Glencore in regards to a letter of credit (LC) UniCredit issued on 29 November 2019 to Hin Leong to finance the purchase of some 150,000 metric tonnes (mt) of high sulphur fuel oil (HSFO) from Glencore. 

“Glencore was entitled to the payment which it received from UniCredit under the LC (letter of credit). Glencore did not defraud or deceive UniCredit; it did not conspire with Hin Leong to injure UniCredit; it was not unjustly enriched. UniCredit is not entitled to rescind the LC, or to recover the payment it made to Glencore,” he said.

“I award Glencore, as the successful party, costs to be assessed. I will address the quantum of those costs separately.”

In its conspiracy claim, Judge Maniam stated though UniCredit emphasised about how Hin Leong defrauded it, the claim failed as the bank was unsuccessful on an earlier fraud / deceit related allegation.

“What is left is a general plea that Hin Leong and Glencore conspired to defraud UniCredit,  but there is no evidence of any such conspiracy. To the extent that the conspiracy is based on the allegation that the Sale Contract was a sham or fictitious transaction, I have found that the Sale Contract was not a sham, and it was not fictitious,” he said. 

 “There is no evidence that Glencore knew, or ought to have known, that Hin Leong was misrepresenting to UniCredit that the goods were ‘unsold’ when in fact Hin Leong had sold them back to Glencore by the Buyback Contract. The dealings between Hin Leong and UniCredit were not Glencore’s responsibility or concern.

“Accordingly, I dismiss UniCredit’s conspiracy claim as well.”

Background

On 22 November 2019, UniCredit granted Hin Leong banking facilities in the sum of USD 85 million, which Hin Leong could use to obtain LCs to finance the purchase of oil, petroleum products and other commodities. 

On 27 November 2019, Hin Leong applied to UniCredit for an irrevocable LC in the sum of USD 37,209,550.35 to finance the purchase of some 150,000 mt of high-sulphur fuel oil (the goods). 

Hin Leong contracted to purchase the goods from Glencore the same day (the Sale Contract). The Sale Contract stated that the goods would be shipped on board the vessel MT New Vision and delivered to Singapore in the period of 18 to 25 December 2019. 

Glencore, however, agreed to simultaneously buy back the goods from Hin Leong (the Buyback Contract).  Hin Leong and Glencore agreed that at 0001 hours on 2 December 2019, title to the goods would pass from Glencore to Hin Leong, and immediately back to Glencore.

On 28 November 2019, Hin Leong submitted to UniCredit a revised LC application. UniCredit asked Hin Leong for documents including the “Purchase and Sales contracts and/or a deal recap”.  Hin Leong replied the same day, saying that its LC application was for “Unsold cargo” and providing a copy of the Sale Contract.  However, the goods were not “unsold cargo” – Hin Leong had already contracted to sell the goods back to Glencore. 

On 13 April 2020, UniCredit issued a notice of demand to Hin Leong, demanding repayment of, among other things, the outstanding advances and accrued interest arising out of UniCredit’s financing of Hin Leong’s purchase of the goods from Glencore. By this time, Hin Leong had requested a meeting with its lenders.

On 14 April 2020, UniCredit asked Glencore if it had the original bills of lading (BLs) referred to in the LC; Glencore replied that it did not have the original BLs. 

Hin Leong was placed under interim judicial management on 27 April 2020, under judicial management on 7 August 2020, and into liquidation on 8 March 2021.

UniCredit thus found itself without repayment from Hin Leong, without the goods, without the BLs, and without security over the goods or the BLs.

Related: Singapore High Court concedes interim judicial management to Hin Leong Trading
Related: Singapore: Hin Leong Marine International liquidators issue notice of dividend
Related: Singapore: Notice of intended dividend announced for Hin Leong Marine International
Related: Lim family aims to wind up Hin Leong Trading subsidiary, Hin Leong Marine
Related: Lim family files application to wind up Hin Leong Trading subsidiary, Hin Leong Marine
Related: Judicial Managers of Hin Leong Trading Pte Ltd file for winding up order
Related: Hin Leong judicial managers to hold meeting of creditors to discuss fees incurred
Related: Hin Leong judicial managers and legal firms could rack up SGD 17.3 million in fees
Related: Bank of China takes legal action against BP Plc and Lim family to recover $312.9 million
Related: Hin Leong Trading founder denies allegations of forgery put forward by HSBC
Related: HSBC takes Lim family and Hin Leong employee to court to recover USD 85.3 million
Related: Report: Hin Leong Trading founder gave instructions to hide USD 800 million losses
Related: Argus Media: Singapore’s Hin Leong founder charged with forgery

 

Photo credit: Manifold Times
Published: 28 October, 2022

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Milestone

China: Xiamen port records 16.37% jump in bunker sales volume in 1H2025

Total of 416 international ships, an increase of 6.12% on year, received marine fuel in bunkering operations during the same period.

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Xiamen port bunkering

The Port of Xiamen recorded bonded bunkering volume of 274,500 metric tonnes (mt) in the first half (1H) of 2025, representing a jump of 16.37% on year, reported Xiamen Daily on Thursday (10 July).

A total 416 international ships, an increase of 6.12% on year, received marine fuel in bunkering operations during the same period.

The report noted Xiamen Port to be increasing bunker players while optimising its bonded marine fuel supply chain system in recent years.

Before February 2025, there were only two bonded bunker fuel suppliers with national licenses operating at Xiamen Port.

The port welcomed Xiamen Kunlun Fuel Oil [厦门昆仑燃料油] as a new marine fuel supplier on 1 February; the company was awarded the first Xiamen local license by both Xiamen Customs and the local government.

Followingly, Xiamen Kunlun Fuel Oil performed its first bonded bunkering operation at Xiamen port on 26 February.

Xiamen Port earlier launched a pilot programme called “two warehouse functions superposition” which combines the functions of both bonded oil storage warehouse and export supervision warehouse into one unit.

Using just a single oil storage tank allows bunker fuel suppliers at Xiamen to save on renting tanks, reduce time spent on tank unloading, improve utilisation rates, and shorten bunker delivery times.

Related: PetroChina subsidiary wins first bonded bunkering licence in Xiamen

 

Photo credit: Xiamen Port Authority, China
Published: 11 July 2025

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Newbuilding

China: Steel cutting ceremony for methanol bunkering tanker “Lucia Cosulich” held

A steel cutting ceremony was held for the 7,999 DWT IMO Type 2 chemical bunker tanker at Taizhou Maple Leaf Shipyard, China.

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Lucia Cosulich

Fratelli Cosulich Marine Energy on Wednesday (9 July) announced the steel cutting ceremony of Lucia Cosulich, a 7,999 DWT IMO Type 2 chemical bunker tanker – the second vessel in a series of four – at Taizhou Maple Leaf Shipyard, China.

“This milestone marks another bold step in our Marine Energy business unit’s commitment to clean fuel readiness and operational excellence,” said the company.

The vessel will be fully methanol-ready, capable of carrying, burning, and bunkering methanol safely and efficiently, with full regulatory compliance standards.

It will feature an integrated Nitrogen Generator System, ensuring safe and inert tank operations at all times. Equipped with advanced safety systems specifically engineered for low-flashpoint fuel handling, the vessel sets a new benchmark in future fuel readiness.

A complete methanol bunkering setup will come as standard, including the Quick Connect/Disconnect Couplings (QCDC), dedicated transfer lines and comprehensive monitoring and control systems to ensure efficient and secure fuel handling.

“Built on state-of-the-art architecture, she is designed not only to meet but to exceed the evolving demands of tomorrow’s energy supply chain,” noted the firm.

Lucia Cosulich embodies our vision to lead the transition within the maritime fuel landscape.”

 

Photo credit: Fratelli Cosulich
Published: 11 July 2025

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Financial Result

Glander International Bunkering reports EBT of USD 22 million for FY2025

‘This fiscal year, we focused on staying close to our clients, while adapting to a fast-changing market,’ says CEO Carsten Ladekjær.

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Glander Result 2024 2025 MT

Global bunker trading and energy solutions provider Glander International Bunkering on Thursday (10 July) posted financial results for the year ended on April 30, 2025 – reflecting stable performance amid ongoing changes in global maritime and regulations.

The company reports a turnover of USD 3 billion and earnings before tax (EBT) of USD 22 million, including a non-recurring item.

“These results demonstrate consistent performance compared to the previous fiscal year, as the company continues to focus on conventional fuels, new fuels, risk management and extensive global reach,” CFO David Varghese comments.

Navigating change in maritime

Throughout the 2024-25 fiscal year, the bunker industry faced critical challenges including the escalation of the US-China trade conflict, ongoing Red Sea and Suez Canal security risks, and the first full-year impact of the EU Emissions Trading System (EU ETS) for maritime shipping.

Compliance with IMO CII measures and the uptake of new fuel products also influenced bunker demand patterns and pricing strategies.

“This fiscal year, we focused on staying close to our clients, while adapting to a fast-changing market,” says CEO Carsten Ladekjær. “In a time of uncertainty and transformation, we focused on staying agile, supporting customers with conventional fuels, and laying the groundwork for new fuel solutions.”

New fuels and other key achievements

Glander International Bunkering made significant progress in 2024-25: completing bioLNG deliveries, expanding biofuel supply, and launching a compliance calculator to help customers navigate FuelEU Maritime. Compared to the previous fiscal year, the company achieved a 71% increase in biofuel volume and 85% increase in LNG volume, along with the sale of nearly 100,000 EUAs.

Other achievements throughout the year include the renewal of its ISCC certifications, membership in the Smart Freight Centre, and Great Place to Work certification for the 7th consecutive year.

Looking ahead, Ladekjær says, “We will do what we have always done since 1961– adapt to new changes and be there for our clients.” He added that Glander International Bunkering is prepared for the next phase of change in global shipping, as decarbonisation, regulatory expansion and geopolitical developments continue to shape the bunker fuel market.

 

Photo credit: Glander International Bunkering
Published: 11 July 2025

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