Collapsed oil trader Hin Leong Trading could be wound up after a proposed sale, together with sister companies Ocean Tankers and Xihe Holdings, fell through, according to a report from Bloomberg.
The news agency said the collective sale failed to attract bidders, leaving court-appointed managers with little choice but to wind up Hin Leong, which collapsed last summer with debts of $3.5bn.
The development was revealed in a letter reportedly sent to creditors by Hin Leong's judicial manager, PricewaterhouseCoopers (PwC), and seen by Bloomberg.
There is still some hope that the sale of the companies individually could attract interest.
The sale of the three companies could have generated around $257m for creditors.
Executives at PwC and Hin Leong were not available for comment.
Around 20 banks are owned money from Hin Leong. The largest creditor is London-based HSBC, which is owed $600m. DBS Group Holdings, ABN Amro Bank and OCBC Bank are reportedly each owed between $200m and $300m.
Singapore government notices indicate that winding-up applications have already been made for marine lubricant company Hin Leong Marine International, along with eight shipping companies controlled by Xihe Holdings.
Bloomberg reported last month that PwC had applied to the Singapore courts to freeze assets, shares and funds held by Hin Leong Trading founder Lim Oon Kuin and his two children, in an effort to recoup the $3.5bn of debt.
Meanwhile, state-owned Jurong Port was reported to be in advanced talks to buy Lim’s stake in Universal Terminal. This would give Jurong Port a stake of about 40% in the oil storage terminal. PetroChina and Macquarie Asia Infrastructure Fund are other shareholders of Universal Terminal.
