The founder of Hin Leong Trading Pte., Lim Oon Kuin, also known as OK Lim, has been declared bankrupt in Singapore following the 2020 collapse of his oil trading empire. The bankruptcy order, issued on December 19th, also includes his children, Lim Huey Ching and Lim Chee Meng, both former directors at the company.
The bankruptcy follows a series of legal and financial troubles for Lim and his family. Hin Leong Trading, once a major player in the global oil market, crumbled under the pressure of the Covid-19 pandemic and plummeting oil prices. The company was accused of concealing significant losses, exceeding $800 million, leaving over 20 banks with substantial debt.
In September, Singapore’s High Court approved a $3.59 billion settlement between the Lim family and liquidators of Hin Leong, along with creditor HSBC Holdings Plc. This agreement concluded the civil case against Lim. While consenting to the judgment, Lim maintained his innocence regarding the claims against him. In a statement, the 82-year-old Lim acknowledged his lack of assets to satisfy the claims and indicated his intention to file for bankruptcy.
BDO Advisory Pte. Ltd.’s Leow Quek Shiong and Seah Roh Lin have been appointed as trustees for the bankruptcy proceedings. Prior to its downfall, Hin Leong was a prominent player in the oil industry, engaged in trading oil products, manufacturing lubricants, and operating storage facilities and loading terminals. The company’s collapse sent shockwaves through the industry and highlighted the vulnerabilities of oil trading businesses during periods of market volatility.
Separate from the civil case, Lim was found guilty in November of cheating HSBC and instigating forgery. He has filed an appeal and will remain free until the appeal hearing concludes. This conviction further complicated Lim’s financial situation and likely contributed to his eventual bankruptcy declaration.
This bankruptcy marks a significant fall from grace for Lim Oon Kuin, once a leading figure in Singapore’s business community. The case serves as a cautionary tale of the risks associated with the oil trading industry and the potential consequences of financial mismanagement. The repercussions of Hin Leong’s collapse continue to be felt in the financial sector and serve as a reminder of the interconnectedness of global markets.
