Finews.asia previously reported that 23 banks reportedly lent a total of $3.85 billion to the troubled oil trader, with HSBC, DBS, OCBC, Bank of China, Societe Generale and Standard Chartered named as the largest lenders.
The Monetary Authority of Singapore (MAS) has reminded banks not to «de-risk indiscriminately» from the bunkering and oil trading sectors and to apply judicious credit assessment on individual borrowers to manage their risks, following reports and that the troubled Singapore oil firm owed creditors nearly $4 billion and that it reportedly did not disclose $800 million in losses through futures trading.
In a joint statement released late Tuesday, Enterprise Singapore (ESG), the Maritime and Port Authority of Singapore (MPA) and MAS said they are closely monitoring developments related to Hin Leong and the broader oil trading and bunkering sectors.
Oil Trading Sector Resilient
ESG said Singapore’s oil trading sector «remains resilient notwithstanding the challenges posed by the drop in global demand for energy» and MPA said there will be no serious impact on Singapore’s bunkering industry.
«The banks are well capitalised and diversified in their exposures to these sectors. MAS is also closely monitoring liquidity and credit conditions in the market which, on the whole, continue to be supportive of households and businesses,» MAS said.
PwC to Take Control?
Hin Leong is seeking to withdraw the bankruptcy protection filing it submitted last week and instead ask Singapore’s High Court to appoint PwC as a third party to run the company under a process known as judicial management, «Financial Times» reported on Wednesday.
A virtual court hearing will be held in the next few days.
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