The DIFC branch of Banque de Commerce et de Placements (BCP) has filed a writ of summons in Singapore, seeking to reclaim $19 million it paid to China Aviation Oil (CAO).
The bank said it issued a letter of credit in January on behalf of ZenRock Commodities Trading to finance its purchase of about 260,000 barrels of gasoil from CAO Singapore, which was to be sold to PetroChina International (East China).
While CAO presented documents to show that the cargo had been loaded onto a tanker in Malacca, Malaysia, and that ZenRock had taken delivery, «representations were in fact false in that, no cargo was shipped and/or delivered pursuant to the CAO-ZR contract,» BCP said, «Reuters» reported on Tuesday.
CAO is majority-owned by a Chinese state-owned firm, and is the largest jet fuel trader in Asia, the report noted. A hearing has been set for September 2.
«Highly Dishonest Transactions»
Singapore-based oil trader Zenrock is currently under investigation for using the same oil cargo as collateral for multiple credit facilities. Zenrock owes at least six banks a total of $166.1 million and has outstanding balances of $449 million.
In May, the firm was placed under judicial management, a form of debt restructuring, after HSBC, its largest creditor, alleged that Zenrock was involved in «highly dishonest transactions» to obtain loans.
