One of China's largest state-owned lenders suing BP in Singapore, and Hin Leong founder Lim Oon Kuin and his two children, for a total of $312.9 million.
Bank of China is seeking $125.7 million from BP, which the oil company withdrew earlier this year based on sales of gasoil cargoes to Hin Leong, and $187.2 million from founder Lim and his two children for deals linked to BP and payments owed, according to a «Bloomberg» report (behind paywall).
According to court documents, the bank said the deals, which took place at the start of the year, were part of a «fictitious purchase scheme conspiracy» to maintain the oil trader's liquidity.
The case comes after HSBC and court-appointed manager PwC filed claims against the insolvent firm's founder, his son Evan Lim Chee Meng and daughter Lim Huey Ching.
Sector Shaken
The oil trader overstated the value of assets by at least $3 billion by transferring money between bank accounts to create a false impression that accounts receivables were collected when no payments was actually received, according to a report.
Some 23 banks reportedly lent a total of $3.85 billion to the troubled oil trader, with HSBC reportedly believed to have the largest exposure at $600 million.
Hin Leong also reportedly did not disclose $800 million of losses through futures trading.
