Court filings showed Hin Leong Trading, which owes nearly four billion dollars, had concealed about $800 million in losses over the years (Roslan RAHMAN)<\/i><\/p>\n
Singapore (AFP) – Singapore has launched a probe into an oil trading firm that allegedly covered up hundreds of millions of dollars in losses, police said Tuesday.<\/p>\n
Hin Leong Trading has been a major force in oil markets for decades and its predicament highlights the fallout from weeks of chaos on crude markets caused by the coronavirus pandemic.<\/p>\n
Demand has been strangled as governments around the world scramble to halt the spread of the virus with lockdowns and travel bans, leading to massive falls in oil prices.<\/p>\n
The company sought court protection from creditors last week after the price collapse crippled revenues and prompted banks to call in debts, Bloomberg News reported.<\/p>\n
But the court filings showed the company, which owes nearly four billion dollars, had concealed about $800 million in losses over the years, the report said.<\/p>\n
It said the company’s founder Lim Oon Kuin had ordered the firm to hide the losses incurred from futures trading.<\/p>\n
The company also sold some of the fuel it had offered as collateral to secure bank loans, Bloomberg said, quoting documents filed in court.<\/p>\n
Singapore police have now launched a probe, confirming in a statement to AFP that “investigations are ongoing”.<\/p>\n
Hin Leong did not respond to AFP’s requests for comment.<\/p>\n
Oil markets have been hammered in recent weeks as the virus marches round the globe, with US crude falling into negative territory for the first time ever Monday.<\/p>\n
Even a deal by top producers to cut output by almost 10 million barrels per day has done little to shore up prices.<\/p>\n
According to Forbes, Lim founded Hin Leong in 1963 at age 20 with a single truck delivering diesel to fishermen and small rural power producers.<\/p>\n
It has since grown into a behemoth with businesses that include oil trading, storage and marine logistics support.<\/p>\n
Forbes said that Lim was no longer a billionaire as of late April “following news that his oil trading company had $800 million in previously undisclosed losses”.<\/p>\n
Disclaimer:<\/b> Validity of the above story is for 7 Days from original date of publishing. Source: AFP.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"
Court filings showed Hin Leong Trading, which owes nearly four billion dollars, had concealed about $800 million in losses over the years (Roslan RAHMAN) Singapore (AFP) – Singapore has launched a probe into an oil trading firm that allegedly covered up hundreds of millions of dollars in losses, police said Tuesday. Hin Leong Trading has…<\/p>\n