Singapore oil trader Hin Leong owes $3.85b to banks

FILE PHOTO: Pipelines run down the deck of Hin Leong's Pu Tuo San VLCC supertanker in the waters off Jurong Island in Singapore July 11, 2019. Picture taken July 11, 2019. REUTERS/Edgar Su/Fiel Photo

Singapore oil trader Hin Leong Trading (Pte) Ltd, which has begun talks with lenders to extend its credit facilities, owes $3.85 billion to 23 banks, two industry sources said on Thursday.

The coronavirus pandemic has led to an unprecedented slump in fuel demand and hammered oil prices, making it difficult for trading firms to make a profit. Hin Leong is one of the largest fuel traders in Asia and an operator of a major tanker fleet.

Some of the banks held a call with Hin Leong and its advisers on Tuesday to discuss ways to provide short-term trade finance after some banks failed to provide the firm with a letter of credit to buy at least one cargo of oil products.

“Hin Leong has asked for an extension (to repay creditors)”, one of the sources with direct knowledge of the matter said.

Hin Leong did not respond to Reuters’ email and phone calls seeking comment.

The firm’s biggest lenders include HSBC Holdings, DBS, Overseas-Chinese Banking Corp, Bank of China, Societe Generale and Standard Chartered, said the second source, who was briefed on the discussions.

HSBC, DBS, OCBC and Standard Chartered declined to comment, while the other banks did not immediately respond to requests for comment.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.