Hints and tips:
...Most of the oil traded by Hin Leong was carried on ships operated or chartered by Ocean Tankers....
...Oil prices have risen from below $20 a barrel in April to near $40 a barrel today, but the structure of the market still makes oil storage profitable....
...He also revealed he had sold a “substantial part” of Hin Leong’s oil inventories and used the cash as general funds, breaching inventory financing agreements with banks....
...The billionaire founder of Hin Leong, Lim Oon Kuin, in 2020 confessed to hiding $800mn in losses at the Singapore-based oil trading firm he founded....
...Used cooking oil from the restaurants is cleaned and turned into scented candles in offcut wine bottles — for the Singapore exhibition the NDC on-site restaurant provided the oil....
...The global energy crunch has rippled across the energy supply chain, hitting everyone from domestic consumers to trading houses that move millions of barrels of oil and gas around the world each day....
...“The document stated that Hin Leong had transferred more than one million barrels of gas oil to China Aviation Oil (Singapore) Corporation Ltd....
...Oil prices are at 21-year lows. If an oil trader as big as Hin Leong is struggling, the outlook for smaller businesses is bleak....
...Following the collapse of Hin Leong, banks have become more nervous about lending to the industry. Deals to finance oil inventories and unsold oil cargoes have come under particular scrutiny....
...Investors and analysts warn that banks are likely to cut their exposure to the industry after heavily indebted oil trader Hin Leong Trading filed for bankruptcy protection....
...Hin Leong, the distressed Singapore oil trader that has admitted to $800m of undisclosed losses, is seeking to appoint PwC as an independent manager to run the business as it pursues a debt restructuring...
...HSBC, ABN Amro and Société Générale are among a group of banks owed almost $4bn by Hin Leong, the Singapore oil trader scrambling to restructure its finances as a brutal downturn hits energy markets....
...Hin Leong Trading, the oil trader founded by one of Singapore’s richest men, has filed for bankruptcy protection as it seeks to restructure debts of almost $4bn....
...The court filings showed Hin Leong had been approached by several companies in the oil industry interested in taking a strategic stake in the company and Ocean Tankers....
...In April 2020, Hin Leong Trading, the oil trader owned by one of Singapore’s richest men, collapsed owing more than $3bn to 20 lenders....
...Because of defaults by other oil traders, several of Hin Leong’s lenders decided to reduce their exposure or stopped providing commodity trade finance....
...Alan LivseyLex Research Editor Best of Lex articles US oil prices: negative space Hin Leong/oil traders: school for scandal Consumer spending: urge to splurge, postponed US retail: JCPenney dreadful...
...While there is temptation to look at the downfall of Hin Leong in particular as an oil specific issue — a punt on prices to go up when in fact they crashed — commodities lawyers like myself will tell you...
...Indeed, it was the crash in oil prices caused by the Saudi-Russia price war and the coronavirus epidemic that triggered the liquidity crunches at Hin Leong and ZenRock Commodities....
...Then, the FT’s natural resources editor, Neil Hume, explains how Singapore oil trader Hin Leong Trading suffered $800m in losses that were not reflected in its financial statements....
...Investment banks have tightened credit lines and scrutiny of existing loans to commodities traders in response to the crash in global oil prices and the collapse of Hin Leong Trading, one of Asia’s biggest...
...Hin Leong’s demise, for example, began with a run on its credit, as banks became spooked by a series of defaults by other oil traders....
...More recently, the founder of Hin Leong admitted to selling inventories pledged to bankers to raise cash and meet margin calls....
...This comes just weeks after rival Hin Leong, one of Asia’s largest traders, collapsed under $4bn of debt and an accounting scandal....
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