Troubled Singapore oil firm Hin Leong reportedly did not disclose $800 million of losses through futures trading, according to a court filing based on an affidavit involving its founder Lim Oon Kuin.
After credit lines were pulled due to financial concerns, reports emerged that Hin Leong owed 23 banks nearly $4 billion. Lim – a Chinese immigrant in his 70s – is seeking a six-month moratorium through Hin Leong and subsidiary Ocean Tankers and revealed that he instructed to keep losses in recent years undisclosed.
«HLT has not been making profits in the last few years,» according to a «Reuters» report citing Lim in a court filing that has yet to be publicized.
«[The company] suffered about US$800 million in futures losses over the years but these were not reflected in the financial statements. In this regard, I had given instructions to the finance department to prepare the accounts without showing the losses and told them that I would be responsible if anything went wrong.»
Volatility
Although the filing said that it kept losses undisclosed in the «last few years», it primarily attributes the troubles to the recent collapse in oil price and the coronavirus pandemic. Officially, the firm reported net profits of $78.2 million for the fiscal year ending in October 2019.
Under Singapore law, Hin Leong will be protected from legal action by creditors for 30 days as the court makes a decision on the reject for a six-month debt extension. Lim is currently represented by law firm Rajah & Tann.
