Legal

Trial against Hin Leong Trading Founder and children draws to an end

Lim Oon Kuin, also known as O.K. Lim, and his two children have agreed to pay USD 3.5 billion to the liquidators of the troubled oil trading firm but have stated they will apply for bankruptcy.

Published

7 months ago

October 2, 2024

Admin

The 50-day trial involving Founder of Hin Leong Trading, Lim Oon Kuin, also known as O.K. Lim, and his two children approached its conclusion with the trio agreeing to pay USD 3.5 billion to the liquidators of the Singapore-based defunct oil trading company Hin Leong Trading, according to The Straits Times on Tuesday (1 October).

The High Court also approved a consent judgement that the Lim family reached with HSBC Holdings which had sued them and Lim’s personal assistant Serene Seng Hui Choo for USD 85.3 million in damages.

Both cases were jointly heard in the High Court.

In the judgement reached by both parties, the family including Lim’s children, Evan Lim Chee Meng and Lim Huey Ching, have to pay the sum of USD 3.5 billion plus interest at 5.33% per annum – from April 2020 to the date of payment – and costs.

However, in written statements, the family stated they do not have enough assets to pay the claimants and will be applying for bankruptcy.

They’ve also said they are not admitting liability for the allegations against them despite consenting to the judgement.

The three were sued in August 2020 by judicial managers PricewaterhouseCoopers Advisory Services for breaching fiduciary duties as directors and fraud. In a court filing, the judicial managers were looking to recover USD 3.5 billion on top of another USD 90 million in dividends which the trio had allegedly paid themselves despite the company being insolvent.

HSBC is reportedly still pursuing its case against Seng, who is unrepresented. A two-day trial on 15 and 16 October is scheduled for HSBC's closing submissions against her to be heard.

Lim is scheduled to be sentenced on 15 October. He faces a jail term of up to 10 years and will also be liable to a fine for each charge of cheating and forgery.

An extensive coverage by Singapore bunkering publication Manifold Times regarding the fall of Hin Leong can be found below:

Photo credit: Manifold Times
Published: 2 October, 2024

Related Topics:Legal - Corruption Legal - Crime

Up Next

Methanol Institute: Global expansion and strategic partnerships (Week 39, 23 to 29 Sept 2024)

Don't Miss

Andrew Starkey appointed as Trafigura Chief Financial Officer for Asia Pacific

Vessel Arrest

Malaysia: MMEA detains tanker for anchoring without permission near Port Klang

Tanker was anchored 5.9 nautical miles west of Pulau Pintu Gedong; Second Deck Officer and Second Engineer were taken to the Pulau Indah marine police jetty for further action.

Published

2 days ago

April 24, 2025

Admin

Malaysia: MMEA detains tanker for anchoring without permission near Port Klang

The Malaysian Maritime Enforcement Agency (MMEA) on Wednesday (23 April) said it detained a tanker for anchoring without permission at 5.9 nautical miles west of Pulau Pintu Gedong at about 3.15pm on 22 April.

The ship was operated by a 36-year-old Thai captain with 16 crew members aged between 20 and 55 years, consisting of 13 Thais including two women, two Myanmar nationals and an Indonesian national.

The inspection found that the ship had committed an offence under the Merchant Shipping Ordinance 1952 by not obtaining permission from the Director-General of the Malaysian Maritime Department and for failing to fly the Malaysian flag.

The tanker’s Second Deck Officer and Second Engineer were taken to the Pulau Indah marine police jetty for further action.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 24 April, 2025

Legal

BlackStone & Gold on causation in misdelivery cases: “Maersk Katalin”

Law firm provides an analysis on misdelivery claims and whether the pendulum has swung back in favour of the banks after a recent spat of successes for shipowners defending against misdelivery claims.

Published

2 days ago

April 24, 2025

Admin

Law firm BlackStone & Gold recently provided Singapore-based bunkering publication Manifold Times its analysis on misdelivery claims and whether the pendulum has swung back in favour of the banks after a recent spat of successes for shipowners defending against misdelivery claims:

By Baldev Bhinder, Managing Director, and Ramandeep Kaur, Director of BlackStone & Gold

The original bill of lading (“OBL”) represents the cornerstone of security for international trade finance. Lenders seek a right to the OBLs because it would give them a notional right to the cargo and in its absence, a claim for misdelivery against shipowners that released the cargo without presentation of OBLs.

A series of decisions from Singapore and UK between 2021 and 2024 however signalled a weakening of misdelivery claims, with shipowners successfully resisting such claims (in summary judgment applications or on merits).

These decisions have put the spotlight on the defence of causation of the loss, and in particular whether holders of OBLs like banks would have allowed discharge without presentation of the OBLs. This examination of the lender’s conduct in turn brings into focus the multiple layers of security in a trade finance structure and the lender’s knowledge of permitting cargo discharge without OBLs, thereby setting up a defence against misdelivery claims.

The “Maersk Katalin” [2024] SGHC 282, provided an occasion for the Singapore High Court to analyse the issue of causation at trial. This case makes clear the highly factual nature of the causation defence – a shipowner resisting a misdelivery claim would therefore have to lead evidence that the bank making the misdelivery claim would have been consulted and would have permitted discharge without OBLs.

From the bank’s perspective, this case underscores the need for banks to be alive to any conduct, which may undermine the value of the OBL as security – this is particularly so when straddling the different types of security interests that the bank takes.

Note: The full article by BlackStone & Gold can be read here.

Photo credit: BlackStone & Gold
Published: 24 April, 2025

Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Development includes Da Xin Tankers, Dong Sheng Tankers, Dong Ya Tankers and Hua Zhong Shipping; meetings will be held electronically on 7 and 8 May, according to Government Gazette notices.

Published

3 days ago

April 23, 2025

Admin

Several notices were published on the Government Gazette on Tuesday (22 April) regarding the annual general meetings of the companies and creditors to be held electronically on 22 April for Xihe Holdings subsidiaries.

The subsidiaries are Dong Sheng Tankers Pte Ltd, Da Xin Tankers Pte Ltd, Dong Ya Tankers Pte Ltd, and Hua Zhong Shipping Pte Ltd.

Annual general meeting for Dong Sheng Tankers are to be held on 8 May at the following times:

For the company: 2pm

Annual general meetings for Da Xin Tankers are to be held on 7 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Dong Ya Tankers are to be held on 8 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Hua Zhong Shipping are to be held on 7 May at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

To receive an update on the liquidation.
To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up

Manifold Times previously reported on the winding up of Da Xin Tankers, Dong Ya Tankers and Hua Zhong Shipping Pte Ltd and the appointment of the joint and several liquidators of the firms.

Related: Singapore: Da Xin Tankers, Dong Ya Tankers, Hua Zhong Shipping to be wound up

Photo credit: Drew Beamer
Published: 23 April, 2025