The company has reportedly sold one-third of its ships, which number around 150, to raise funds for its creditors.
The ships, which are held by Xihe Capital, Xihe Group and 10 single purpose companies, have been sold at prices of $2 million to $3 million each for coastal barges and around $30 million each for very large crude carriers, «Reuters» reported, citing two sources familiar with the matter.
Sales started in September last year, and buyers include Greek shipping companies, but there is no indication of the total sum of money raised so far, the report said.
Inflated Assets
Xihe group is owned by the Lim family, which is at the center of the Hin Leong scandal.
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.
Wind Up Expected
Court-appointed supervisors PwC previously said that Hin Leong's assets – estimated at $257 million – cover just a fraction of its liabilities. Hin Leong's creditors 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.
An application by PwC to wind up Hin Leong will be heard by the Singapore High Court on March 8, after a sale process failed to attract any bids.
