Embattled oil tycoon and Hin Leong Trading founder Lim Oon Kuin has sold two VLCCs to Eyal Ofer's Zodiac Maritime.
Sale-and-purchase market sources said Zodiac Maritime acquired the 318,800-dwt Kun Lun San and Wu Tai San (both built 2011) for an undisclosed sum.
They added that the sales of the Shanghai Waigaoqiao Shipbuilding-constructed crude tankers to the Monaco-based shipowner were carried out by Xihe Capital, which is part of Xihe Group.
“These two tankers fall under Xihe Capital, which is under the control of the Lim family," a shipping source said. "They [Lim family] have sold the VLCCs privately.”
TradeWinds understands that the sales were not carried out by court appointed judicial managers or creditors of Hin Leong Trading and that DBS Bank finalised the sales.
Details emerging
S&P players believe Zodiac Maritime bought the ships some time ago, but details of the deal have only emerged recently.
Zodiac Maritime has renamed the Kun Lun San and Wu Tai San pair as Cobalt Nova and Cyan Nova, respectively, in its fleet list.
According to VesselsValue, the market value of the Cobalt Nova is $45.57m, while the Cyan Nova is pegged at $43.78m. They are anchored off Malaysia.
Lim Oon Kuin’s son, Evan Lim, did not respond to emails from TradeWinds, while Zodiac Maritime declined to comment.
The shipping source said he is not surprised that the Lim family is selling its fleet.
“They owned the tankers and they need to maintain them,” the shipping player said. "Since these ships are not trading, it is a wise move to cash them."
The sale of the two VLCCs is believed to be the second transaction that the Lim family has carried out.
In September, Lim was reported to have sold two LR2s — the 108,900-dwt Ocean Lady and Ocean Odyssey (both built 2008) — to Indonesian shipowner Buana Lintas Lautan (BULL) for an undisclosed price. Kevin Wong-led BULL has renamed the LR2s as Thundercat and Thunderbolt, respectively.
Ocean Tankers, Xihe Holdings and Hin Leong Trading are owned by Lim, his son and his daughter. All were placed under judicial management for restructuring after Hin Leong racked up nearly $4bn of debt.
Last week, DBS Bank appointed KPMG to put four chemical tankers — the 16,600-dwt Ocean Premier, Ocean Leader and Ocean Hero (all built 2011) as well as the Ocean Progress (built 2012) — for sale.
It is the third bank that has moved to “protect its interests” as the businesses of Lim and his family had come under pressure. The other two banks were Malayan Bank (Maybank) and ABN Amro.
Before the collapse of Hin Leong and Ocean Tankers, the Lim family was linked to around 130 vessels. These ships are part of Xihe Group, which comprises Xihe Holdings, Xihe Capital and Lim’s 11 special purpose vehicles.
Since late July 2020, some 19 ships linked to various Xihe entities have been sold, according to VesselsValue data.
S&P brokers said there are around 17 vessels for sale.
