Oil Trading Giant Hides Millions of Losses – Now Facing Legal Shake‑Ups
Hin Leong Trading Pte Ltd (HLT), a big name in Singapore’s oil world, has found itself tangled in a web of hidden losses and a desperate plea for debt relief. The company’s founder and director, the 70‑year‑old O.K. Lim, signed an affidavit that reveals a staggering $800 million in losses that never made it into the company’s books.
What the Affidavit Says
In a court filing that landed on Friday, Lim admitted that HLT recorded a net profit of $78.2 million for the year ended in October, but that wasn’t the whole story. He explained that the company has been clawing at the bottom of its financial plates for “several years” – losses that were deliberately omitted from the official statements.
The affidavit also blandly lays out the company’s massive debt puzzle: a six‑month moratorium request on $3.85 billion in obligations to 23 banks. The Go‑To‑Grammar rule of Singapore law, in practice, means that HLT can’t be sued by these creditors for a month while the court weighs whether to grant the requested pause.
The Back‑story Behind the Numbers
- Oil prices have slid by two‑thirds in the first quarter.
- COVID‑19 slammed demand, adding strain to HLT’s cash pot.
- HTL had to liquidate inventory, paying margin calls and cutting cash reserves.
- They sold a big chunk of oil before their buyers could get the cargo, apparently leaving their lenders with a hit.
Lim’s role was less than subtle – he had told his finance team to quietly hide the losses, taking full responsibility for whatever fallout that might bring. The affidavit hints that the hidden loss was more a “season‑long” event rather than a rapid disaster.
Whos Who – The Cast of Characters
O.K. Lim – Founder, director, and the man behind the mask of concealed numbers.
Evan Lim Chee Meng – O.K.’s son, director of both HLT and its subsidiary Ocean Tankers. He’s also on the affidavit list, but rang‑hanging for a response.
Patrick Ang – The lawyer, who keeps his ears closed to outside queries.
When we called all the parties for a comment, the 23 banks remained silent, and HLT itself couldn’t be reached over the weekend.
What’s Next?
HLT could still drop more affidavits – perhaps a catalogue of the 20 largest unsecured and unrelated creditors. It might also owe $2.67 billion to Oil Tankers for cargoes that now sit on a dead‑end ledger.
And there’s a looming issue with PetroChina International: they’ve pulled back from contracts with HLT and are demanding an immediate payment of $23.87 million. As of now, PetroChina looks unresponsive.
Takeaway
It’s a cautionary tale of high‑stakes trading and the peril of hiding losses. In the oil business, fortunes can flip faster than a wick on a candle—especially when the market’s as fickle as a mood ring.
